MR D.I.Y. (MRDI.KL): 1H26 dividend payout ratio is 142% of earnings

研报英文原文证据摘录

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11 Aug 2026 09:06:22 ET │ 11 pages

MR D.I.Y. (MRDI.KL)

1H26 dividend payout ratio is 142% of earnings

CITI'S TAKE

Buy

Price (11 Aug 26 17:00)

RM1.52

Target price

RM2.10

Expected share price return

38.2%

Expected dividend yield

5.4%

Expected total return

43.6%

Market Cap

RM14,406M

US$3,522M

2Q26 adj NP of RM134m (QoQ: -30%, YoY: -15%) brought 1H26 adj. NP to

RM327m (YoY: -2%). This made up 48%/47% of ours/Bloomberg

consensus forecasts, which was in line with expectations. Declared DPS

of 1.3 sen goes ex on 24 Aug, and an additional 2 sen has been declared

with payment date yet to be finalised.

We expect large dividend payout to moderate in 2H26 — After declared DPS

totaling 3.3 sen in 2Q26, 1H26 cumulative DPS of 4.9 sen represented 142% of

earnings. We expect payout in 2H26 to moderate down closer to 100%; as such we

keep our FY26E dividend payout ratio expectations at 120% of full year earnings.

SSSG returns to negative due to timing of Hari Raya — 2Q26 declined to -3.7%

(1Q26: +1.6%), which was due to timing of Hari Raya this year boosting sales in 1Q26.

This was within expectations; we expect FY26E SSSG to average -1.5%.

Gan Huan WenAC

GP margin rises pauses in 2Q26, but expect upside in 2H26 — 2Q26 GP

moderated to 47.4% (1Q26: 48.6%), but this is still a relatively high (1H26 GPM:

48.0% vs. 1H25 GPM: 47.8%). We understand this was due to MRDIY's promotional

activity, including a 60-day price lock campaign that ran until end-Jun. MRDIY have

guided that since then, they have begun to pass through higher prices from

suppliers. We expect GP margin to rise in 2H26 as the group benefits from stronger

MYR.

Implications — We maintain our Buy on MRDIY.

Earnings Summary

Year to

Net Profit

Diluted EPS

EPS growth

31 Dec

2024A

P/E

P/B

ROE

Yield

(RMM)

(¢)

(%)

(x)

(%)

570

6.0

1.6

25.2

7.4

30.9

3.3

2025A

633

6.7

11.0

22.7

7.9

33.8

5.3

2026E

686

7.3

8.5

20.9

8.6

39.4

5.7

2027E

728

7.7

6.1

19.7

7.6

40.8

3.6

2028E

752

8.0

3.3

19.1

6.8

37.5

3.7

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