Mr DIY in search of the next growth catalyst

Mr DIY Group (M) Bhd, Malaysia's largest home improvement retailer, is seeking a new growth catalyst amid intensifying competition and the saturation of its store network. AmInvest Bank notes that e-commerce penetration, aggressive Chinese entrants, and expanding value retailers are driving up the competition bar for the company.

The research house warns that Mr DIY's store network is nearing structural maturity, with average revenue per store declining since 2022. With 1,610 outlets nationwide at the end of June 2026, the company's network is expected to become denser than the current network average. AmInvest's skepticism about the management's target of 2,000 stores by FY2028 arises from the already high store density and the 77% store overlap in the network.

The research house expects the company's net new stores to fall short of the 155-store target guidance, but it remains positive about the group's shift towards value-creation, such as the membership programme, store-format refreshes, and selective expansion. Despite a 15.2% drop in net profit in Q2 FY2026 due to higher costs associated with expansion, Mr DIY remains valued at RM14.41 billion.