Wonder why PE drop from 50+ to below 40 now? So a 6 point drop per year and by another 3 years PE will be 22. The million dollar question the PE drop because of increase earning or people start to realise this stock is overvalued?
Brunei: Malaysia Population: 445,373 : 33,574,000 With addreasable market of 34 million population and at current DIY yearly revenue of abt RM 4billion. That mean perpopulation revenue of RM 118. A family of 5 will need to spend RM 588 in DIY shop per year.
Most likely i3lurker will conclude the foreign workers population will need to increase to 20 million in order for DIY to double the revenue.
Beside population creates buying power. Aggressive stores expansion into everywhere you reach are key earning growth for chain stores business. The management proven ability to expand the business. That why I like it
TOPICS Store expansion to drive growth for MR DIY CORPORATE NEWS Thursday, 10 Nov 2022
Kenanga Research expects MR DIY’s gross margin to remain stable at about 41% for the rest of the year.
PETALING JAYA: While MR DIY Group Bhd’s store expansion appears to be positive for its growth but moving forward its sales may be hit due to inflationary pressures.
Historically, festive periods have proven to be MR DIY’s strong quarters and the expectation is the fourth quarter (4Q22) to be so due to year-end shopping and festivities.
With the adjustments in prices and easing of freight charges, Kenanga Research expects MR DIY’s gross margin to remain stable at about 41% for the rest of the year.
Post its 3Q22 results, Kenanga Research cut the home improvement retailer’s financial year 2022 (FY22) earnings by 9% as it reduced its basket size by RM1 to RM28.
The research house noted that even though there is no change to its FY23 earnings for MR DIY, it had revised its assumptions based on average basket size of RM28 (from RM29), 180 new stores (from 150), flattish same-store sales growth from 2% growth, and gross margin of 43% from 42%.
MR DIY released its 3Q22 financial results on Tuesday with sales dampened by disruption to inventory replenishment efforts and tightened consumer spending.
UOB Kay Hian (UOBKH) Research said higher operating cost and input costs offset MR DIY’s price revision.
STARPICKS Resorts World Cruises introduces its latest cruise... The confluence of factors weighed on earnings, disappointing expectations but noted headwinds are at a tail end.
The research house continue to like MR DIY for its high cash generation and attractive earnings growth.
RHB Research believes a strong immediate earnings rebound is on the cards for the company with 4Q seasonally the strongest quarter considering the festivities and holidays.
It believes the company’s gross profit margin is set to expand by an estimated 1.5 to two percentage points starting 4Q22.
Beyond the immediate term, MR DIY’s management is committed to 180 new store openings for FY23.
It believes the hardware retailer’s business model will be able to thrive at the greater degree of density and MR DIY Express is expected to capture more growth opportunities.
RHB Research has a “buy’’ call on MR DIY with a target price (TP) of RM2.62 a share. The risks cited to its call include a critical supply chain disruption and sharp rise in input costs.
Kenanga Research maintains its “market perform’’ outlook on the company and lowered its TP to RM2 a share.
It cited risks include unfavourable foreign exchange trends, volatile supply and logistics, and high inflation eating into consumer spending power.
UOBH Research revised its 2022 to 2024 earnings for MR DIY by minus 10.9%, 9% and 7.3% respectively to account for lower margin assumptions.
It noted Creador’s stake in the company has been pared down to 7.3% from 15.2% during its initial public offering but maintained its “buy’’ call with a lower TP of RM2.30 a share.
Thumb up to pang6769. You had done something good that KYY and Stony should had done long ago.
Creador founder and wife on Forbes Asia’s list of most altruistic persons Brahmal Vasudevan and Shanthi Kandiah have donated for healthcare and education. FMT Business - 06 Dec 2022, 12:56pm
Brahmal Vasudevan and Shanthi Kandiah have been supporting the local communities in Malaysia and India. PETALING JAYA: Malaysian power couple Brahmal Vasudevan and Shanthi Kandiah are among the new additions in Forbes Asia’s list of the most altruistic persons in the Asia-Pacific region.
Brahmal, 54, the founder and CEO of private equity firm Creador and Shanthi, 53, the founder of boutique competition and regulatory law firm SK Chambers, are among the 15 individuals or couples who made it to the Heroes of Philanthropy list this year.
The couple have supported the local communities in Malaysia and India through the Creador Foundation, a non-profit they co-founded in 2018, according to Forbes Asia.
In May, they pledged to donate RM50 million to underwrite the cost of building a teaching hospital at the Universiti Tunku Abdul Rahman (Utar) campus in Kampar.
The couple had stepped in on learning that Utar had only managed to raise half the sum needed to build the non-profit facility.
Once completed in 2023, it will provide affordable healthcare for the under-privileged.
The couple also donated £25 million (RM133.5 million) to the Imperial College London to create the Brahmal Vasudevan Institution for sustainable aviation. The objective is to pioneer technologies to help the aviation industry make the transition to zero pollution.
Creador is one of the Pre IPO investors. The initial IPO is to reward the pre IPO investors and then after IPO Credaor cash out from 15.2% to 7.3%. Mind calculate how much Creador peofited from this investment?
Creador ceases to be substantial shareholder of MR DIY
By Izzul Ikram | theedgemarkets.com | 2023-02-22 21:47:56 KUALA LUMPUR (Feb 22): MR DIY Group (M) Bhd’s early investor Creador has ceased to be a substantial shareholder in the home improvement retailer after it offloaded another 65 million shares on Wednesday (Feb 22).
Creador's deemed interest in MR DIY fell to 4.93% or 464.55 million shares, after disposing of the 65 million shares, which represented a 0.69% stake.
The private equity firm — via Hyptis Ltd — had held a 15.3% stake in MR DIY when the group was listed on Bursa Malaysia in October 2020.
Hyptis' 4.93% equity interest in MR DIY currently comprises a direct stake of 3.47%, and another 1.46% stake held through its subsidiaries Amanita Regalis Sdn Bhd and Andira Cordata Sdn Bhd.
Coupled with the 65 million shares disposed of on Wednesday, Hyptis has disposed of a cumulative 354.41 million shares or 3.76% since September last year.
The Bee Family Ltd is MR DIY’s largest shareholder with a 50.76% equity interest, followed by Platinum Alphabet Sdn Bhd with 6.1%. Platinum Alphabet is also an early investor in MR DIY and had held a 6.9% stake when the group was listed.
Shares in MR DIY ended six sen or 3.43% lower at RM1.69 on Wednesday, giving the group a market capitalisation of RM15.94 billion. Year to date, the counter has fallen 15.5%.
MR DIY posted a marginal 1.13% increase in net profit to RM136.08 million for the fourth quarter ended Dec 31, 2022, from RM134.55 million a year earlier, impacted by the one-off prosperity tax of RM10.2 million. Quarterly revenue rose 9.27% to RM1.07 billion from RM975.39 million previously, mainly driven by positive sales contributions from new stores which grew to 1,080 from 900.
For the full year, MR DIY's net profit rose 9.52% to RM472.95 million from RM431.83 million in the previous year, with revenue up 18.15% to RM3.99 billion from RM3.37 billion.
When investor like Creador cash out from its stock investment, it can only mean he is forseeing interest rate hike thus borrowing cost increase or stock investment dividend return is poorer than bank/money market interest rate return.
As inflation grows, dollar store type businesses (MRDIY) will flourish. Its something I have witnessed in UK during 2008 financial crisis, the Poundland stores (1pound store) were packed day in day out.
MrDiy is facing problem of too many stores at Peninsular Malaysia with not well trained staffs ; if MRDiy continue to earn Rm100-110 mil per quarter , it should go down to 1.30 n below very soon . It is strange that reputable research houses like Aminvest n HLG keep giving very high target prices to MRDiy since one year plus ago , maybe they purposely want to lift the share prices …
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by pang72 > 1 month ago | Report Abuse
Then pay more la