KUALA LUMPUR : MR DIY Group (M) Bhd is expected to post a strong financial performance in the financial year ending 2025 (FY25), supported by robust store expansion plans and operational savings from its new automated warehouse, according to CIMB Securities Sdn Bhd.
The research firm projects an 8.1% year-on-year increase in core net profit for FY25, driven primarily by the group’s aggressive retail footprint growth. MR DIY plans a net addition of 180 new outlets during the year, representing a 12.5% increase from FY24.
Operational efficiencies are also set to improve following the commencement of MR DIY’s automated warehouse in the second quarter of FY25. The warehouse is expected to lower start-up costs and enhance supply chain productivity, supporting margins over the medium term.
MR DIY reported a core net profit of RM176 million for the first quarter of FY25, marking a 12.2% year-on-year increase. CIMB said the result was in line with both its internal forecast and Bloomberg consensus estimates, noting that festive-driven spending—particularly around the earlier-than-usual Hari Raya celebrations—boosted Q1 performance.
The firm assessed the broader impact of US-imposed tariffs on global trade as neutral to slightly positive for MR DIY. Despite concerns that protectionist policies may dampen consumer sentiment, the group is expected to benefit from softer global demand through improved supplier terms and favourable exchange rates.
CIMB maintained its earnings per share forecasts for FY25 to FY27 and reaffirmed its ‘Buy’ rating on the stock, with an unchanged target price of RM2.15.
“We remain positive on MR DIY’s earnings trajectory, supported by its market leadership in Malaysia’s home improvement sector, resilient balance sheet, and disciplined cost management,”
the brokerage said.
–Business Times
