Malaysian home improvement retailer MR DIY Group M. Bhd. has emerged as Southeast Asia’s strongest-performing stock this month, attracting growing optimism from analysts who see further upside driven by an improving domestic consumption environment.
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The company’s shares closed at RM1.88 on Monday, marking a 23% rise so far this month and placing it at the top among all 91 constituents of the MSCI ASEAN Index. Analysts remain positive on the stock, with BIMB Securities setting a 12-month target price of RM2.40, while MBSB Investment Bank has forecast RM2.20.
As one of Malaysia’s largest retail operators, with more than 1,400 outlets nationwide, MR DIY continues to pursue aggressive expansion plans and stands to gain from stronger household spending. This outlook is supported by government stimulus measures, a steadily improving economy, low unemployment and rising tourist arrivals, which together help cushion the impact of global economic uncertainties.
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The retail sector is also expected to benefit from the government’s RM100 cash assistance for adult citizens, which can be spent at selected retailers and grocery stores. MR DIY previously cited the initiative as a significant catalyst for the sector when reporting a 5.6% year-on-year increase in sales and announcing plans to open 155 additional stores in its latest quarterly earnings.
“Coupled with growing consumer confidence and a robust macro outlook, MR DIY as a consumer discretionary play is poised for a better year ahead,” said Jayden Vantarakis, head of Asean equity research at Macquarie Capital in Singapore.
–Bloomberg