Mr. D.I.Y. Group (M) Faces Cautious Same-Store Sales Outlook Amid Competition — Market Talk

Mr. D.I.Y. Group (M)'s same-store sales growth appears cautious amid intensifying competition and market saturation, although gradual improvement is expected in coming quarters due to a lower base of comparison, Affin Hwang IB analyst Peggie Wong says in a note. Management expects gross profit margins to remain stable, supported by a stronger ringgit and limited cost escalation from product sourcing, she notes. The company might not face significant pressure from higher freight and utility costs, as both account for only around 1%-2% of sales, she says. Affin Hwang raises Mr. D.I.Y.'s target price to 1.63 ringgit from 1.55 ringgit, while maintaining a hold rating on the stock. Shares are unchanged at 1.70 ringgit. (yingxian.wong@wsj.com)