PETALING JAYA: Analysts remain positive about MR DIY Group (M) Bhd
’s earnings trajectory.
“Despite cutting our forecast core earnings per share (EPS) estimates for next year and 2027 by 1.1% and 3.5%, respectively, due to reduced contributions from its associate KKV Supplier Chain Sdn Bhd, we expect the company to post core EPS compounded annual growth rate of 12.8% between 2024 to 2027,” CGS International Research (CGSI Research) said.
The research house attributed this to revenue growth driven by store openings and positive same-store sales growth, stabilising operating costs, and higher gross margins on the back of the stronger ringgit against the yuan and US dollar.
The research house also lifted its dividend payout forecast aggressively from this year to 2027 as it believes MR DIY is willing to raise dividend payouts, judging by the consistent increase in dividend payout from 60% in the third quarter of 2023 (3Q23) to 90.5% in 3Q25, and its assurance that it would not hold on too much cash, which could drag on return on equity.
CGSI Research retained its “add” call and Gordon Growth Model-based target price of RM2.09 as it remains positive about MR DIY’s growth trajectory.
