MR DIY Shares Slide After Reporting Lower 3Q Net Profit

KUALA LUMPUR, Nov 15 (Bernama) -- MR DIY Group (M) Bhd shares fell in early Bursa Malaysia trade today following a drop in third-quarter (3Q) 2024 net profit. 

At 10.43 am, the stock declined by 14 sen to RM1.96, with 26.98 million shares changing hands.

On Thursday, MR DIY reported a lower net profit of RM121.64 million for the 3Q ended Sept 30, 2024, from RM123.94 million in the same period last year.

Revenue increased by 6.4 per cent to RM1.13 billion in 3Q 2024 from RM1.06 billion in the previous quarter, driven by higher transactions and the contribution of new stores.

However, this was partially offset by a decline in like-for-like sales growth, reflecting tightening household spending and weaker consumer sentiment during this period. 

Meanwhile, on outlook, RHB Investment Bank Bhd (RHB IB) said MR DIY’s earnings momentum should pick up in the 4Q of this year due to the favourable year-end seasonality.

However, the bank understood that the additional costs related to the new warehouse would continue to incur before reaching the optimal level by 1Q 2025.

“Looking further ahead, the higher wages in both the public and private sectors in 2025 are expected to lift disposable income and consumer sentiment.

“Together with the upsized cash handouts for the lower income groups, MR DIY could stand to benefit as the recipients of these measures fall well within its targeted customer groups,” it said in a separate research note.

RHB IB has maintained its “buy” call for MR DIY, with a new target price of RM2.35 from RM2.59 previously.

-- BERNAMA