PETALING JAYA: Home improvement retailer MR DIY Group (M) Bhd
’s outlook is looking brighter, with a recovery in consumer sentiment seen in the first quarter ended March 31, 2025 (1Q25), as well as better margins from cheaper goods from China, lower freight costs and measures taken to reduce labour cost.
AmInvestment Bank Bhd, which has maintained a “buy” recommendation on the stock, said the recovery in consumer sentiment has been supported by higher disposable income.
It also noted that the company’s gross margin is expected to improve from 45.8% in financial year 2024 (FY24) to 46% to 48% in FY25, driven by weakening of the yuan, as Chinese goods make up 70% of its inventory, as well as from cost optimisation measuresand lower freight costs.
The research house has lowered its target price for the stock to RM1.90 per share from RM2.10, based on FY26 price-to-earnings ratio of 25 times.
