PETALING JAYA: CIMB Research remains positive on MR DIY Group (M) Bhd

, mainly due to the group’s strong cost leadership, extensive store network and resilient sales momentum supporting earnings growth despite a more cautious spending environment.

The research house is maintaining its “buy” call and a target price of RM2.16 on the company.

Following a recent investor meeting at Invest Malaysia 2026, CIMB Research said it came away encouraged by management’s confidence that sales remain healthy, with no visible decline despite weaker consumer sentiment.

“We came away positive from MR DIY’s recent investor meeting at Invest Malaysia 2026, with MR DIY reiterating healthy sales momentum despite softer consumer sentiment, supported by consumer downtrading and its value-for-money proposition.”

The research house added that the group’s store expansion strategy remains intact.

As at the end of the first quarter of 2026 (1Q26), MR DIY operated 1,615 outlets after adding a net 31 stores during the quarter.

The management is targeting approximately 155 new stores this year, which would lift the total store count to around 1,734 outlets. In addition, the retailer plans to refurbish about 100 existing stores in FY26, representing roughly 6.2% of its network.

CIMB Research views the refurbishment programme favourably, describing it as “a low-risk lever to improve productivity within the existing store base while complementing new outlet expansion”.

A key highlight is the company’s “Harga Tetap Sama” 60-day price-lock campaign, which covers up to 19,000 stock-keeping units from May 1 to June 30.

The research house believes the initiative reinforces customer trust and strengthens MR DIY’s value proposition.

Notably, despite sourcing about 70% of its retail inventory from China, management has not encountered supplier shortages or significant price increases.

The company has also pre-stocked inventory at favourable prices, providing a near-term buffer against cost pressures.

CIMB Research forecasts revenue to rise to RM5.37bil in FY26 from RM4.95bil in FY25, while core net profit is expected to increase to RM682mil from RM635mil.

Return on equity is projected to improve to 33.8% in FY26 from 32.1% previously.

The research house further said MR DIY’s ability to attract value-conscious consumers, coupled with disciplined expansion and strong operational execution, leaves it well positioned to navigate a challenging retail environment while continuing to deliver sustainable growth.