Mr DIY

Mr DIY

Postby winston » Thu Sep 24, 2020 9:11 pm

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Main Market-bound Mr DIY to issue 941.49 million IPO shares

by Lam Jian Wyn

KUALA LUMPUR (Sept 24): Mr DIY Group (M) Bhd, which plans to list on the Main Market of Bursa Malaysia, will issue 941.49 million new and existing ordinary shares as part of its initial public offering (IPO), it said in a statement today.

The retailer will be offering 470.75 million IPO shares to bumiputera investors approved by the Ministry of International Trade and Industry, and 309.21 million existing ordinary shares to Malaysian institutional and selected investors, foreign institutional and selected investors outside the US, and qualified institutional buyers in the US.

Meanwhile, its retail offering comprises 36 million new ordinary shares to directors and employees of the company as well as eligible individuals who have “contributed to Mr DIY’s success”, and 125.53 million new ordinary shares to the public.

Sources have told The Edge that the listing could take place as soon as in the fourth quarter of this year, thanks to its V-shaped recovery from the pandemic-induced Movement Control Order (MCO) that had hit retailers.

According to Bloomberg, the IPO aims to raise about US$500 million (RM2.1 billion). It was postponed twice — late last year and in the first half of this year, due to the MCO.

According to Mr DIY, it operates 640 stores across Malaysia and four stores in Brunei under the Mr DIY brand as at Sept 6. It also operates the Mr Toy chain of stores offering affordable toys and products for children and babies, and Mr Dollar, which sells F&B and household goods at either RM2 or RM5.

The group has signed an underwriting agreement with CIMB Investment Bank, Maybank Investment Bank, RHB Investment Bank, AmInvestment Bank, Hong Leong Investment Bank and Kenanga Investment Bank.

CIMB IB, Maybank IB and RHB IB are the joint managing underwriters and joint underwriters while AmInvestment, Hong Leong IB and Kenanga IB are the joint underwriters for this IPO exercise.

CIMB IB and Maybank IB are also the joint principal advisers, joint global coordinators and joint bookrunners, while RHB IB is also the joint global coordinator and joint bookrunner.

Meanwhile, Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Ltd, J.P. Morgan Securities plc and JPMorgan Securities (Malaysia) Sdn Bhd are the joint global coordinators and joint bookrunners, and UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are the joint bookrunners.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ipo-shares
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Re: Mr DIY

Postby winston » Fri Oct 16, 2020 2:17 pm

Mr DIY deemed more valuable than Malaysia's postal service provider, airport operator

by Arjuna Chandran Shankar

For Main-Market bound Mr DIY Group (M) Bhd, its market capitalisation of RM10 billion upon listing, based on its initial public offering (IPO) price of RM1.60 sen per share, will make it more valuable than the country’s airport operator and national postal service provider.

IPO Price RM1.60.

Inter-Pacific Research placed a fair value of RM1.85 on Mr DIY, based on a target price-to-earnings ratio (PER) of 27.5 times to its forecast earnings per share of 6.7 sen for the calendar year 2021 (CY21).

TA Securities Research meanwhile, placed a fair value of RM1.73 on Mr DIY, based on CY21 EPS of 6.9%, and a PER of 25 times.

“Considering the negative impact from the MCO (Movement Control Order) and the temporary closure of selected stores during March to May 2020, we forecast FY20 earnings to fall 18.0% to RM260.4 million, before jumping 66.5% and 22.2% in FY21 and FY22 to RM433.5 million and RM529.6 million respectively.

The acceleration in FY21 and FY22 is supported by new store expansion,” Lye wrote in a note on Monday.

It plans to have 900 stores across Malaysia and Brunei by end-2021, from the 674 it currently operates. It is set to debut on Oct 26.


Source: The Edge

https://www.theedgemarkets.com/node/536645
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Re: Mr DIY

Postby winston » Sun Oct 18, 2020 9:44 pm

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Thinking of investing in Mr DIY? Read this first

KUALA LUMPUR (Oct 18): The initial public offering (IPO) of home improvement retailer Mr DIY has understandably generated some excitement in the domestic market.

After all, it will be the largest IPO in three years, seeking to raise RM1.5 billion. The listed company will have a market capitalisation of RM10 billion at the offer price of RM1.60.

At this price, its shares are valued at 31.5 times trailing earnings. This is a rich price-to-earnings valuation by almost all yardsticks — sold on the premise of its considerable growth potential.

The company is looking to expand its footprint in Malaysia by opening more new stores. How realistic are these expectations, though?

In a span of six short years, the number of stores has grown from 100 to 674 currently, equivalent to a compound annual growth rate of 37.4%. The company intends to add 226 outlets, or 33.5% growth, to hit a total store count of 900 by end-2021.

Asia Analytica thinks this pace of growth may not be sustainable. Why?

In its report ‘Mr Don’t Invest Yet’ published in the The Edge Malaysia weekly’s Oct 19 issue, the research firm highlights how Mr DIY is operating the largest chain of home improvement stores in the region — despite Malaysia’s significantly more modest population size.

In fact, Malaysia’s number of home improvement stores per million population is well ahead of Indonesia and Singapore, and on par with some of the developed economies like the UK (see chart).

Asia Analytica also highlights its declining same-store sales growth and inventory turnover, which underscores why it believes Mr DIY’s growth prospects are limited.

The research firm is also troubled by the sharp rise in its borrowings — as well as the reason behind the increased borrowings.

Source: The Edge

https://www.theedgemarkets.com/article/ ... read-first
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Re: Mr DIY

Postby winston » Wed Oct 21, 2020 11:41 am

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MR DIY Group (MRDIY MK)
Shopping For A Great Bargain


MR DIY, Malaysia’s most established home improvement retailer offers a compelling 4-year earnings (2017-21F) CAGR of 20.6%, which is unrivalled in the region (peers’ average: 8.1%).

Robust organic growth of 8.9% is further supplemented by new store rollouts and expansion into new retail formats.

Ultimately, it has a sterling track record, execution ability and a highly cash-generative business model. Initiate coverage with BUY and target price of RM2.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 0a9f9a943f
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Re: Mr DIY

Postby winston » Mon Oct 26, 2020 2:18 pm

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MR DIY tops actively traded list, up 6.25% on Main Market debut

by Arjuna Chandran Shankar

Our business started this year with 593 stores; we have said we will be launching 307 new stores in 2020 to 2021, and that will take us to 900 stores.

The main focus is on growing MR DIY stores, with the secondary growth driver being the MR DOLLAR and MR TOY brands of stores.

Malaysia had demonstrated high growth potential with a compound annual growth rate (CAGR) of 10.2% per annum,

The 307 new stores would be funded using the “strong cash-generative capability” of the group.

He emphasised that this capability would also provide enough cash flow to pay “sufficient dividends” to shareholders. The group’s dividend policy is 40% of its net earnings.

It has allocated RM438 million for the opening of the 307 new stores under all three brands.


Source: The Edge

https://www.theedgemarkets.com/node/538092
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Re: Mr DIY

Postby winston » Fri Nov 06, 2020 7:24 am

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Mr DIY posts 54% jump in quarterly profit, declares 0.73 sen dividend

by Wong Ee Lin

KUALA LUMPUR (Nov 5): Newly-listed Mr DIY Group (M) Bhd's net profit for the third quarter ended Sept 30, 2020 (3QFY20) jumped 54.11% to RM113.45 million from RM73.62 million in the same quarter last year, as it recorded higher average monthly sales per store.

On the back of the strong earnings growth, it declared an interim dividend of 0.73 sen per share, which amounts to RM45.8 million, payable on Dec 18.

Its stock exchange filing today showed revenue climbed 31.78% to RM740.23 million in 3QFY20, from RM561.72 million in the previous year, while earnings per share (EPS) rose to 1.86 sen from 1.21 sen.

For the nine months ended Sept 30, the group's net profit was up a marginal 0.98% to RM228.9 million from RM226.68 million, while revenue grew 7.99% to RM1.79 billion from RM1.66 billion.
EPS increased to 3.76 sen from 3.72 sen previously.

The group, meanwhile, noted that its cash flow and balance sheet remained healthy, with a net cash flow from operations of RM360.8 million, while its gearing ratio was at "a comfortable 0.69 times", adding that will improve when the equity of about RM301 million raised during its initial public offering (IPO) is taken into account.

Source: The Edge

https://www.theedgemarkets.com/article/ ... 3-dividend
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Re: Mr DIY

Postby winston » Fri Nov 06, 2020 11:36 am

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Mr D.I.Y. Group (MRDIY MK)

3Q20: Earnings In Line; Electrifying Performance Given Operating Headwinds

Mr. DIY’s 3Q20 earnings were within our expectations but ahead of consensus.

The quarter’s earnings matched 1H20’s earnings - growing 54% yoy.

The electrifying performance is only a sneak preview of a normalised run rate for quarterly contribution, without factoring in its 20% store expansion going forward.

Furthermore, exciting new store formats provide unencumbered competition against existing stores.

Maintain BUY and target price of RM2.20.

Source: UOBKH

https://research.uobkayhian.com/content ... ff26883377
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Re: Mr DIY

Postby winston » Fri Nov 06, 2020 2:34 pm

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MR DIY’s earnings downside remains a risk, says Affin Hwang

by Surin Murugiah

KUALA LUMPUR (Nov 6): Affin Hwang Capital Reseach has maintained its “sell” rating on MR DIY Group (M) Bhd (MR DIY) at RM1.88 with an unchanged target price (TP) of RM1.21, and said the firm’s earnings downside remains a risk in the subsequent quarters, considering:
i) sporadic lockdown measures
ii) potential margin compression from accelerated store openings and
iii) restocking activities trickling off.

“With 60% of its stores located in malls, this may pose a threat to earnings over the near term.

Source: The Edge

https://www.theedgemarkets.com/node/540015
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Re: Mr DIY

Postby winston » Mon Nov 09, 2020 9:56 am

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Mr D.I.Y. Group (MRDIY MK)
4Q20 Earnings Could Be Equally Robust Amid Conditional MCO Headwinds


3Q20 was a largely normalised quarter in terms of earnings, with minimal pent-up demand recognised.

The outperformance of non-urban stores against urban area stores supports Mr. DIY’s aggressive store roll-out plan.

4Q20 earnings could be equally robust amid conditional MCO headwinds on:
a) 4Q being a seasonally strong quarter;
b) a higher store base; and
c) demand remaining highly resilient.

Maintain BUY with higher target price of RM2.40 as we raise our 2021-22 earnings forecasts.

Source: UOBKH

https://research.uobkayhian.com/content ... 12fa0a4349
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Re: Mr DIY

Postby winston » Mon Nov 23, 2020 10:39 am

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Mr D.I.Y. Group (MRDIY MK)
Electrifying Prospects Yet To Be Fully Priced In


Since our initiation, Mr DIY’s share price has gained 46% and has reached our previous target price.

This is however, only a prelude to its electrifying prospects that have yet to be fully realised, thereby prompting us to further upgrade our earnings and valuations.

It is already the 33rd largest market-cap company in Malaysia and factoring its growth ahead, we believe it is poised for an FBMKLCI inclusion in the future.

Maintain BUY with higher target price of RM3.00.

Source: UOBKH

https://research.uobkayhian.com/content ... c8ba61270b
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