Just a month ago, Mr DIY stock was traded below its IPO price of 1.60. We prepared the article but held off publishing it. What a difference a month makes and now Mr DIY is up 22% in a month to RM1.90.
For a stock that generated plenty of fanfare during its IPO, it is surprising to see Mr DIY Group (M) Bhd (KLSE: MRDIY) experience such a steep correction in the last 2 years, with its share price falling to around RM 1.55 in Dec 2025.
Mr DIY debuted strongly post-IPO, surging to RM2.92 by April 2021 on expansion hype, with shares rebounding from a RM1.00 low in October 2020. Revenue compounded at +20-30% annually through 2024, fuelled by 1,500+ stores nationwide.
But in 2025, shares corrected by close to -50% from its IPO peak, amid subsidy cuts, wage hikes, and consumer slowdowns. After bottoming out around RM1.50–RM1.54 in mid-December, the share price rebounded in January 2026, climbing back towards RM1.90.
We were surprised ourselves. What happened?
Let’s re-evaluate the figures too…
Financials
Financially, MR DIY has been growing its revenue and bottom line consistently. That said, I personally feel that the number of stores have been growing a bit out of hand, given that there are more than 3x more MR DIY outlets than McDonald’s restaurants in Malaysia.
Earlier this year, MR DIY reported negative same store sales growth (SSSG). To curb this, MR DIY actually had to close 19 underperforming outlets in 2025.
Due to its simple retailing model and sourcing of goods from China, MR DIY is able to grow its profits and operating cash flow, and eventually dividend payout.
KKV catalyst?
The trendy folks would already be aware of KKV, a lifestyle shop that has been aggressively expanding across Kuala Lumpur. KKV is a trendy lifestyle retail brand from China, offering a vast assortment of affordable products in aesthetically pleasing physical stores and online. The stores are known for their vibrant, “Instagram-worthy” atmosphere and extensive inventory of over 20,000 SKUs
What many may not realise, however, that MR DIY actually holds a 49% stake in KKV Supplier Chain Sdn Bhd, the Malaysian operating entity for KKV. However, this rather new venture is still in the red, and would take time below it meaningfully contributes to MR DIY’s profitability.
While MR DIY’s existing outlets and dollar shop serves the B40 predominantly, having KKV helps MR DIY target the M40 and T20 categories.
There could be a margin expansion play in this.
The “Invisible Ceiling”
Although MR DIY stores are mushrooming across South East Asia, with presence even in Europe, shareholders or potential investors must understand that the listed shares in Bursa Malaysia only provides exposure to the Malaysia business, operations and profit.
The major owners of MR DIY, have chosen to list respective business operations separately in respective stock bourses across South East Asia.
In other words, each overseas MR DIY will be run and owned separately from MR DIY listed in Malaysia, sharing only the same major shareholder.
Personally, I think the days of rapid store expansions are well over, and the company is more likely to focus on profitability and improving existing stores KPI.
Opening new stores might extend MR DIY’s reach, but it also risks cannibalising existing stores growth.
And for a retailer that already has more outlets than McDonald’s, I personally think the invisible ceiling for growth potential may be closer than it looks.
Valuation and Verdict
Although valuation is relatively still steep to my personal liking, the selloffs amidst respectable financials had put MR DIY at a valuation of around 24x P/E. The recent rally, I suspect, is due to the strengthening of the Ringgit, which makes importing much favourable to businesses like MR DIY.
As it slowly becomes a household name and embeds itself into the everyday purchasing habits of Malaysians, the recurring purchases and revenue can continue to be the core engine to propel top and bottom line growth.
And comparing it against fierce competitor ECOSHOP, I find MR DIY’s valuation much more palatable.
On top of that, MR DIY has shown consistency in dishing out dividends.
Valuation looks reasonable back then early January, with a slight tinge of premium. But the recent rally has definitely bring the dividend yield from 4% to closer to 3%, hinting of premium. But hey, if a stronger Ringgit can warrant a better profit and payout, the trailing yield shouldn’t be representative.
I like that having KKV introduces a new growth frontier. But then again, there are plenty of competition within that space as well. So whether KKV can help with margin expansion remains a wild card.
Bargain or value trap? Definitely not value trap, but definitely not in deep bargain, if you ask me!
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