Malaysian retailer MR DIY Group M. Bhd., Southeast Asia’s top-performing stock this month, is drawing further bullish bets as analysts anticipate upside from the country’s improving consumption outlook.
The stock closed at RM1.88 per share Monday, capping a 23% gain this month to lead all 91 members of the MSCI Asean Index. BIMB Securities has set a 12-month price target of RM2.40, while MBSB Investment Bank projects RM2.20.
As one of Malaysia’s largest retail chains with over 1,400 stores nationwide, MR DIY plans further expansion and is positioned to benefit from stronger domestic consumption, supported by government stimulus and an improving economy. Policymakers are leaning on resilient household spending, aided by a low unemployment rate, and surging tourism to offset global headwinds.
A major boost for the sector is coming from the government’s cash payout of RM100 to adult citizens, spendable at selected retailers and grocers. The company highlighted the program as a key driver for the retail sector, when it reported a 5.6% on-year sales increase and plans for 155 new stores in its latest quarterly results.
"Coupled with growing consumer confidence and a robust macro outlook, MR DIY as a consumer discretionary play is poised for a better year ahead,” said Jayden Vantarakis, head of Asean equity research at Macquarie Capital in Singapore. - Bloomberg
