MR D.I.Y. Group (M) Bhd remains a BUY for various research houses despite a softer second quarter (2QFY26), with target prices ranging from RM1.89 to RM2.13.
RHB Research lowered its target price to RM2.03 from RM2.20, MBSB Research kept its RM2.13 target, HLIB cut its target to RM2.10 from RM2.23 while CIMB Securities lowered its target to RM1.89 from RM2.16.
The company posted 2QFY26 revenue of RM1.26 billion, up 3.6% year-on-year but down 8.5% quarter-on-quarter, while core earnings fell between 10.5% and 16% year-on-year depending on the analysts’ adjustments. The weaker quarter reflected softer average basket sizes, targeted promotions and higher operating expenses, including staff costs, depreciation from its automated warehouse and rental-related SST.
For the first half, revenue rose 6.5% to RM2.63 billion, supported by store expansion and stronger transaction volumes. However, core earnings slipped as costs grew faster than sales. The group declared 4.9 sen in dividends for 1HFY26, translating into a payout ratio of about 142%.
Still, analysts expect earnings to improve in the second half as the price-lock campaign has ended, allowing selective price adjustments, while refurbished and new stores are delivering stronger productivity.
RHB Research said new stores opened in the first half generated around 20% higher sales per square foot, while HLIB noted the group’s focus on destination formats and economies of scale.
The analysts also highlighted MR DIY’s attractive dividend yield and value-focused proposition, which could benefit from consumer downtrading.
As of 10.24 am, the stock price dipped 1.32% to RM1.50.
