MR D.I.Y. Group (M) Berhad: 1QFY2026 Results – Robust Growth, Dividend Payout, and Major Sukuk Issuance

Key Highlights

• Revenue Growth: 1QFY2026 revenue surged 9.3% year-on-year to RM1.37 billion, driven by network expansion and strong festive demand.
• Profit Growth: Profit before tax (PBT) rose 10.3% to RM258.3 million, while profit after tax (PAT) climbed to RM192.0 million.
• Gross Profit Margin: GP margin improved to 48.6%, up 0.8 percentage points, supported by favourable inventory costs and disciplined promotional activity.
• Store Network Expansion: Store count increased by 7.7%, from 1,471 to 1,584 stores, with the Group targeting ~155 net new stores in FY2026.
• Dividend Announcements: Multiple interim dividends declared, including RM189.5 million for FY2025 (paid in May 2026) and RM151.6 million for FY2026 (to be paid in June 2026). The 1Q dividend payout ratio is 79% of PAT – a strong signal of management confidence in future prospects.
• Sukuk Wakalah Programme: Establishment and completion of a RM540 million Islamic medium term notes (IMTN) and Islamic commercial papers (ICP) issuance under a RM5 billion programme, rated AA1 (stable outlook) and P1 by RAM Ratings. Proceeds to be used for refinancing, working capital, capex, and general corporate purposes.
• Cash Position: Cash and cash equivalents jumped to RM334.8 million (from RM173.4 million a year ago), reflecting strong cash generation.
• Segmental Performance: Malaysia segment remains the key contributor, Brunei provides steady revenue and profit.
• Capital Commitments: RM314.5 million approved/contracted for capex.
• Political/Economic Risks: Management notes heightened uncertainty from geopolitical events (e.g., US-Iran conflict), which may impact inflation and operating costs, but remains confident in resilience and flexibility.

Detailed Analysis

The Group’s 1QFY2026 performance reflects robust growth across all key financial metrics, with revenue up 9.3% year-on-year to RM1.37 billion. The expansion in store network (up by 113 net stores y-o-y) and positive like-for-like sales, especially during Chinese New Year and Hari Raya, drove the topline. Total transactions rose 12.3% to 54.1 million, although average basket value declined 2.6% – indicating more customers but slightly smaller purchases per visit.

Gross profit increased 11% to RM667.4 million, with GP margin improving to 48.6%. The margin gain is attributed to disciplined promotional activity and favourable inventory costs, partly due to a stronger Ringgit. Other operating income (RM10.9 million) includes management fees, interest from short-term funds, and lease deposit accretion.

Administrative expenses grew 6.4% to RM62.2 million reflecting investment in headquarters and supporting functions. Other operating expenses rose 11.2% to RM338.2 million, driven by staff costs, depreciation, and SST impact on rental.

The Group’s effective tax rate was 25.7%, slightly above the statutory rate, due to non-deductible expenses.

Balance Sheet & Cash Flow

Total assets stood at RM3.91 billion, with equity at RM1.85 billion. Cash and cash equivalents increased significantly to RM334.8 million. Net cash from operating activities was RM427.6 million, underscoring strong cash generation. Capital commitments for property, plant and equipment total RM314.5 million.

Dividend & Shareholder Returns

MR D.I.Y. continues its track record of high dividend payouts. For FY2025, an additional interim dividend of RM0.02/share (RM189.5m) was announced, payable in May 2026, on top of RM0.018/share (RM170.6m) paid in March 2026. For FY2026, RM0.016/share (RM151.6m) will be paid in June 2026. The 1Q dividend payout ratio is 79% of PAT, reflecting strong confidence in cashflows and future outlook.

Capital Market Activity: Sukuk Wakalah Programme

A major development is the RM5 billion Sukuk Wakalah Programme (Islamic debt), with RM540 million issued in May 2026 (7-year, 10-year IMTN, and 6-month ICP), rated highly by RAM Ratings. This gives MR D.I.Y. substantial flexibility to access capital for growth, refinancing, and corporate purposes. The successful issuance and rating are significant for investors, as they signal financial strength and future expansion ability.

Risks & Outlook

Management notes economic uncertainties from ongoing geopolitical risks (e.g., US-Iran conflict, oil price volatility) which could impact inflation and costs. However, the Group remains confident in its resilient business model and will continue store expansion, targeting 155 net new stores in FY2026. Political and macroeconomic developments are being monitored closely.

Shareholder Information & Price Sensitive Issues

• High Dividend Payout: Sustained high dividend payout ratio (79% of PAT) is a clear positive for income-focused investors.
• Sukuk Programme Completion: The successful RM540 million Islamic debt issuance under a RM5 billion programme strengthens the capital position and expansion capability, potentially affecting share price positively.
• Store Network Expansion: Continued aggressive store rollout underpins revenue growth and long-term value creation.
• Strong Cash Generation: Robust operating cash flows and increased cash balance mitigate financial risk.
• Potential Inflation Impact: Management’s attention to oil price-driven inflation is relevant for cost projections and margin outlook.

Conclusion

MR D.I.Y. Group’s 1QFY2026 results demonstrate strong growth, sustained high dividend payouts, and completion of a major Sukuk programme. These developments are likely to be price sensitive and could positively affect share value, given the Group’s continued expansion, robust cash generation, and flexibility in funding future growth.

Investors should monitor future store openings, dividend announcements, and macroeconomic risks, as well as the utilisation of Sukuk proceeds.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Please consult with a licensed financial advisor before making any investment decisions.

Versi Bahasa Malaysia

MR D.I.Y. Group (M) Berhad: Laporan Suku Pertama 2026 – Pertumbuhan Kukuh, Dividen Tinggi, dan Terbitan Sukuk Besar

Poin-Poin Penting

• Peningkatan Pendapatan: Pendapatan suku pertama 2026 naik 9.3% tahun ke tahun kepada RM1.37 bilion, didorong oleh pertambahan bilangan kedai dan permintaan tinggi semasa musim perayaan.
• Peningkatan Keuntungan: Keuntungan sebelum cukai (PBT) meningkat 10.3% kepada RM258.3 juta, sementara keuntungan selepas cukai (PAT) naik kepada RM192.0 juta.
• Margin Keuntungan Kasar: Margin GP meningkat kepada 48.6%, naik 0.8 mata peratusan, disokong oleh kos inventori yang menguntungkan dan aktiviti promosi yang berdisiplin.
• Pertumbuhan Rangkaian Kedai: Bilangan kedai bertambah 7.7%, daripada 1,471 kepada 1,584 kedai, dengan sasaran pembukaan ~155 kedai baharu bersih pada 2026.
• Pengumuman Dividen: Dividen interim berjumlah RM189.5 juta untuk FY2025 (dibayar Mei 2026) dan RM151.6 juta untuk FY2026 (dibayar Jun 2026). Kadar pembayaran dividen suku pertama adalah 79% daripada PAT – menandakan keyakinan pengurusan terhadap prospek masa depan.
• Program Sukuk Wakalah: Penubuhan dan penyelesaian terbitan IMTN dan ICP bernilai RM540 juta di bawah program RM5 bilion, diberi penarafan AA1 & P1 oleh RAM Ratings. Hasil digunakan untuk pembiayaan semula, modal kerja, capex dan tujuan korporat.
• Kedudukan Tunai: Tunai dan setara tunai melonjak kepada RM334.8 juta (daripada RM173.4 juta setahun lalu), mencerminkan penjanaan tunai yang kukuh.
• Prestasi Segmen: Segmen Malaysia kekal penyumbang utama, Brunei memberi sumbangan pendapatan dan keuntungan yang stabil.
• Komitmen Modal: RM314.5 juta diluluskan/dikontrak untuk capex.
• Risiko Politik/Ekonomi: Pengurusan mengakui ketidakpastian ekonomi akibat konflik geopolitik (contohnya konflik AS-Iran) yang mungkin mempengaruhi inflasi dan kos operasi, namun yakin dengan daya tahan model perniagaan.

Analisis Terperinci

Prestasi MR D.I.Y. pada 1QFY2026 menunjukkan pertumbuhan kukuh dengan pendapatan meningkat 9.3% tahun ke tahun. Pertambahan rangkaian kedai dan jualan positif semasa musim perayaan memacu pertumbuhan. Jumlah transaksi naik 12.3% kepada 54.1 juta, walaupun nilai bakul purata menurun 2.6%.

Keuntungan kasar naik 11% kepada RM667.4 juta dengan margin GP meningkat kepada 48.6%. Ini didorong oleh kos inventori yang menguntungkan dan aktiviti promosi berdisiplin. Pendapatan operasi lain sebanyak RM10.9 juta merangkumi yuran pengurusan, faedah daripada dana jangka pendek, dan diskaun deposit sewa.

Perbelanjaan pentadbiran meningkat 6.4% kepada RM62.2 juta, manakala perbelanjaan operasi lain naik 11.2% kepada RM338.2 juta, didorong oleh kos staf, susut nilai, dan SST ke atas sewa.

Kadar cukai efektif ialah 25.7%, sedikit melebihi kadar statutori, disebabkan oleh perbelanjaan tidak boleh ditolak cukai.

Kedudukan Kewangan & Aliran Tunai

Jumlah aset RM3.91 bilion, ekuiti RM1.85 bilion. Tunai dan setara tunai meningkat kepada RM334.8 juta. Aliran tunai operasi bersih RM427.6 juta, menunjukkan penjanaan tunai yang kukuh. Komitmen modal untuk aset tetap berjumlah RM314.5 juta.

Dividen & Pulangan Pemegang Saham

MR D.I.Y. mengekalkan kadar pembayaran dividen yang tinggi. Untuk FY2025, dividen interim tambahan RM0.02/saham (RM189.5j) diumumkan (dibayar Mei 2026), selain RM0.018/saham (RM170.6j) dibayar Mac 2026. Untuk FY2026, RM0.016/saham (RM151.6j) akan dibayar Jun 2026. Kadar pembayaran dividen suku pertama ialah 79% daripada PAT.

Aktiviti Pasaran Modal: Program Sukuk Wakalah

Penubuhan program Sukuk Wakalah RM5 bilion, dengan terbitan RM540 juta pada Mei 2026 (IMTN 7 & 10 tahun, ICP 6 bulan) diberi penarafan tinggi. Ini memberi fleksibiliti besar kepada MR D.I.Y. untuk pembiayaan pertumbuhan, pembiayaan semula, dan tujuan korporat. Kejayaan terbitan dan penarafan adalah penting untuk pelabur, menunjukkan kekuatan kewangan dan keupayaan pengembangan masa depan.

Risiko & Prospek

Pengurusan mengakui ketidakpastian ekonomi dari risiko geopolitik (contohnya konflik AS-Iran, harga minyak) yang boleh mempengaruhi inflasi dan kos. Namun, syarikat yakin dengan daya tahan model perniagaan dan akan meneruskan pengembangan kedai, mensasarkan 155 kedai baharu bersih pada 2026.

Maklumat Pemegang Saham & Isu Sensitif Harga

• Kadar Dividen Tinggi: Kadar pembayaran dividen berterusan (79% PAT) adalah positif untuk pelabur berorientasikan pendapatan.
• Penyelesaian Program Sukuk: Terbitan sukuk bernilai RM540 juta di bawah program RM5 bilion memperkukuh kedudukan modal dan keupayaan pengembangan.
• Pengembangan Rangkaian Kedai: Pembukaan kedai secara agresif menyokong pertumbuhan pendapatan dan penciptaan nilai jangka panjang.
• Penjanaan Tunai Kukuh: Aliran tunai operasi yang mantap dan baki tunai tinggi mengurangkan risiko kewangan.
• Potensi Impak Inflasi: Perhatian pengurusan terhadap inflasi akibat harga minyak adalah relevan untuk unjuran kos dan margin.

Kesimpulan

Prestasi MR D.I.Y. pada 1QFY2026 menunjukkan pertumbuhan kukuh, pembayaran dividen tinggi, dan penyelesaian program Sukuk utama. Perkembangan ini berpotensi sensitif harga dan boleh memberi kesan positif kepada nilai saham, memandangkan pengembangan berterusan, penjanaan tunai kukuh, dan fleksibiliti pembiayaan masa depan.

Pelabur perlu memantau pembukaan kedai baharu, pengumuman dividen, risiko makroekonomi, dan penggunaan hasil Sukuk pada masa akan datang.

Penafian

Artikel ini adalah untuk tujuan maklumat sahaja dan bukan nasihat pelaburan atau cadangan untuk membeli atau menjual sebarang sekuriti. Sila dapatkan nasihat daripada penasihat kewangan berlesen sebelum membuat keputusan pelaburan.

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