Strengthening ringgit a boon for MR DIY 

PETALING JAYA: The strengthening ringgit is a boon to home improvement retailer MR DIY Group (M) Bhd as imported goods make up around 70% of its product mix, analysts say.

RHB Research said on top of that the company’s growing scale, with more than 5,000 stores and adding about 1,000 stores a year will bring more bargaining power to the group given its collective procurement practice.

MR DIY could leverage the margin advantage by launching more aggressive price promotions and marketing campaigns going forward to entice spending, the research house said.

“Margin tailwinds should insulate earnings from operating expenditure inflation and the stock offers the highest dividend yield among large-cap consumer stocks,” it added.

The research house maintained its “buy” call on the stock with a target price of RM1.87.