Mr DIY aims to open 100 more stores this year
PETALING JAYA: Mr DIY Group (M) Bhd, which is planning a listing on the Main Market of Bursa Malaysia Securities Bhd, is targeting to open at least 100 additional stores in 2020.
“We have a strong track record of growing our store network in Malaysia by successfully opening new and profitable stores. We intend to leverage our business model and operational platform to continue to scale our store network to capitalise on the underpenetrated home improvement retail sector in Malaysia,“ the group said in its prospectus exposure with the Securities Commission Malaysia.
The group is principally involved in the retail of home improvement products and mass merchandise in Malaysia and Brunei. As at Oct 31, 2019, it had 566 stores in Malaysia and four stores in Brunei.
Last month, it celebrated the opening of its 1,000th store in Asia.
Mr DIY is the largest home improve-ment products retailer in Malaysia, with an estimated market share of 25.4% in 2018 based on its revenue for the financial year ended Dec 31, 2018 (FY18).
In FY18 and the financial period ended Aug 31, 2019, it recorded 6.7 million and 8.2 million transactions per month on average at its stores, respectively.
In FY16, FY17 and FY18 and the financial period ended Aug 31, 2019, its stores achieved an average same-store sales growth (SSSG) of 0.9%, 6.5%,4.5% and 4.6%, respectively.
“We intend to continue to focus on delivering positive SSSG for our stores. The expansion of our store network further increases our brand awareness.”
The group posted a net profit of RM205.71 million in the financial period ended Aug 31, 2019, on revenue of RM1.47 billion.
“We target a payout ratio of at least 40.0% of our net profit attributable to the owners of our company for each financial year on a consolidated basis after taking into account working capital, maintenance capital and committed capital require-ments of our group.”
Mr DIY is planning an initial public offering of up to 941.49 million shares, comprising an offer for sale of up to 564.89 million existing shares and a public issue of 376.60 million new shares. Proceeds will be used to repay bank loans and for working capital.
Source: TheSunDaily