MR DIY shares slide after reporting lower 3Q net profit

MR DIY Group (M) Bhd experienced a decline in its shares on Bursa Malaysia after announcing a reduced net profit for Q3 2024. As of 10:43 AM, its shares fell by 14 sen to RM1.96, with 26.98 million shares traded.

MR DIY Reports Decline

For the quarter ending September 30, 2024, MR DIY reported a net profit of RM121.64 million, slightly lower than the RM123.94 million recorded during the same period last year. Despite this, revenue rose by 6.4% to RM1.13 billion from RM1.06 billion in Q3 2023. The increase was attributed to higher transactions and new store contributions. However, tightening household budgets and weaker consumer sentiment led to a decline in like-for-like sales growth.

Looking ahead, RHB Investment Bank Bhd (RHB IB) anticipates an improvement in MR DIY’s earnings for Q4 2024, supported by favourable year-end spending trends. However, additional warehouse costs are expected to continue until Q1 2025.

The bank also projects a positive outlook for 2025, citing higher wages in the public and private sectors, as well as increased cash handouts for lower-income groups, which could boost disposable income and benefit MR DIY’s targeted customer base.

RHB IB has maintained its “buy” rating for MR DIY but revised its target price from RM2.59 to RM2.35.

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