Mr. D.I.Y. Group's Cost, Strong Brand Key Advantages Amid Softer Consumer Sentiment — Market Talk

Mr. D.I.Y. Group (M)'s cost leadership and strong brand recognition are expected to help the retailer sustain customer traffic and attractive returns despite softer consumer sentiment, CIMB Securities analyst Walter Aw Lik Hsin says. Management has guided that sales momentum remains healthy, supported by consumers trading down to value-oriented products, he says in a note. The company is on track to open about 155 new stores and refurbish around 100 outlets this year to boost sales. Its 60-day price-lock campaign could also reinforce its value proposition, he adds. CIMB maintains a buy rating on Mr. D.I.Y. and keeps target price at 2.16 ringgit. Shares are 1.3% higher at 1.60 ringgit. (yingxian.wong@wsj.com)