Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<p>The Malaysian home improvement retailer MR D.I.Y. plans to raise about US$362m (RM1.5bn) at an indicative IPO price of RM1.60 per share. The company is the largest home improvement retailer in the country with a store count of 640 as at the end of June 2020.</p>
<p>In our previous insight on the company’s IPO <a href="https://www.smartkarma.com/insights/mr-diy-ipo-quality-homes" target="_blank" data-smartkarma-citation="insights:43989" rel="noopener">MR DIY IPO: Quality Homes</a> , we examined the company’s business model, its financials and future prospects. Refer the extract below:</p>
<blockquote>
<p>Having analysed the company’s IPO prospectus and its financials, we believe the company has good potential to improve its top line and further expand margins. Though it seems that the company’s margins are declining, a comparison of the company’s profit margins against its peers indicate that the company generates margins well above its peers</p>
</blockquote>
<p>We find the company’s valuation attractive compared to its peers despite the company’s better growth profile and we believe there is further upside.</p>

The Malaysian home improvement retailer MR D.I.Y. plans to raise about US$362m (RM1.5bn) at an indicative IPO price of RM1.60 per share. The company is the largest home improvement retailer in the country with a store count of 640 as at the end of June 2020.
In our previous insight on the company’s IPO MR DIY IPO: Quality Homes , we examined the company’s business model, its financials and future prospects. Refer the extract below:

Having analysed the company’s IPO prospectus and its financials, we believe the company has good potential to improve its top line and further expand margins. Though it seems that the company’s margins are declining, a comparison of the company’s profit margins against its peers indicate that the company generates margins well above its peers

We find the company’s valuation attractive compared to its peers despite the company’s better growth profile and we believe there is further upside.

MR DIY IPO: Inexpensive Valuation Compared to Peers Despite Better Growth Profile

<p>Malaysian home improvement retailer Mr D.I.Y. has filed for an IPO which will raise approximately RM1.5bn (US$362m), the largest listing in three years in Malaysia. The company has set the pricing at RM1.60 per share and is expected to price the IPO on the 14<sup>th</sup> of October.</p><p>The company is the largest home improvement retailer in the country with a store count of 640 as at the end of June 2020. The home improvement market in Malaysia is forecasted to grow over the next few years driven by the creation of new townships due to urbanisation and growing disposable income that should support growth in demand for home improvement goods and services in the country.</p><p>In this insight, we examine the company’s business model, expansion plans and the company’s financials. We will be discussing the company’s valuation in a follow-up insight.</p>

Malaysian home improvement retailer Mr D.I.Y. has filed for an IPO which will raise approximately RM1.5bn (US$362m), the largest listing in three years in Malaysia. The company has set the pricing at RM1.60 per share and is expected to price the IPO on the 14th of October.The company is the largest home improvement retailer in the country with a store count of 640 as at the end of June 2020. The home improvement market in Malaysia is forecasted to grow over the next few years driven by the creation of new townships due to urbanisation and growing disposable income that should support growth in demand for home improvement goods and services in the country.In this insight, we examine the company’s business model, expansion plans and the company’s financials. We will be discussing the company’s valuation in a follow-up insight.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div><p><a href="https://www.smartkarma.com/entities/mr-d-i-y-group" target="_blank" data-smartkarma-citation="entities:28430:1" rel="noopener">MR D.I.Y. Group (MRDIY MK)</a> is the largest home improvement retailer in Malaysia, with a revenue market share of 29.1% in 2019, according to Frost &amp; Sullivan. At the fixed IPO price of RM1.60 per share, Mr DIY will raise proceeds of $362 million (primary/secondary split of 20%/80%). Fourteen cornerstone investors will subscribe for 234.7 million of the offer shares. The cornerstone investors include Aberdeen Standard Investments, AIA, BlackRock, Fidelity and JP Morgan Asset Management. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/mr-d-i-y-group-ipo-make-your-own" target="_blank" rel="noopener">our previous note</a>, we highlighted that with a commendable performance during the COVID-19 outbreak, we continue to believe that Mr DIY’s fundamentals offer more positives than negatives. Overall, we think that an attractive valuation and solid cornerstone support makes Mr DIY tempting at the proposed price. </p></div></div></div>

MR D.I.Y. Group (MRDIY MK) is the largest home improvement retailer in Malaysia, with a revenue market share of 29.1% in 2019, according to Frost &amp; Sullivan. At the fixed IPO price of RM1.60 per share, Mr DIY will raise proceeds of $362 million (primary/secondary split of 20%/80%). Fourteen cornerstone investors will subscribe for 234.7 million of the offer shares. The cornerstone investors include Aberdeen Standard Investments, AIA, BlackRock, Fidelity and JP Morgan Asset Management. In our previous note, we highlighted that with a commendable performance during the COVID-19 outbreak, we continue to believe that Mr DIY’s fundamentals offer more positives than negatives. Overall, we think that an attractive valuation and solid cornerstone support makes Mr DIY tempting at the proposed price. 

<p><a href="https://www.smartkarma.com/entities/mr-d-i-y-group" target="_blank" data-smartkarma-citation="entities:28430:1" rel="noopener">MR D.I.Y. Group (MRDIY MK)</a> is the largest home improvement retailer in Malaysia, with a revenue market share of 29.1% in 2019, according to Frost &amp; Sullivan. Mr DIY has launched the roadshow for its long-awaited IPO to raise RM1.5 billion ($360 million). The institutional bookbuilding will run from 6 to 14 October. Pricing is set for 14 October with listing targeted for 26 October.   </p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/mr-d-i-y-group-ipo-initiation-bare-necessities" target="_blank" rel="noopener">our initiation note</a>, we stated that with enviable exposure to the underpenetrated home improvement retail sector in Malaysia, Mr DIY seems to have a reasonable runway to maintain its high growth, high returns equity story. Mr DIY's latest prospectus details its 2019 and 1H20 results. Overall, with a commendable performance during the COVID-19 outbreak, we continue to believe that Mr DIY’s fundamentals offer more positives than negatives.</p></div>

MR D.I.Y. Group (MRDIY MK) is the largest home improvement retailer in Malaysia, with a revenue market share of 29.1% in 2019, according to Frost &amp; Sullivan. Mr DIY has launched the roadshow for its long-awaited IPO to raise RM1.5 billion ($360 million). The institutional bookbuilding will run from 6 to 14 October. Pricing is set for 14 October with listing targeted for 26 October.   In our initiation note, we stated that with enviable exposure to the underpenetrated home improvement retail sector in Malaysia, Mr DIY seems to have a reasonable runway to maintain its high growth, high returns equity story. Mr DIY's latest prospectus details its 2019 and 1H20 results. Overall, with a commendable performance during the COVID-19 outbreak, we continue to believe that Mr DIY’s fundamentals offer more positives than negatives.

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/mr-d-i-y-group" target="_blank" data-smartkarma-citation="entities:28430:1" rel="noopener">MR D.I.Y. Group (MRDIY MK)</a> is looking to raise US$364m in its upcoming IPO in Malaysia.  </p><p>The company is the largest home improvement retailer in Malaysia with a market share of about 29.3% in 2018 based on FY2019 revenue. </p><div><p>We have covered the basics of the company in our previous three notes:</p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-largest-home-improvement-retailer-in-malaysia" target="_blank" data-smartkarma-citation="insights:35843" rel="noopener">Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-store-walk-through-and-thoughts-on-value-proposition" target="_blank" data-smartkarma-citation="insights:36114" rel="noopener">Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-small-stores-with-dominant-market-share" target="_blank" data-smartkarma-citation="insights:36402" rel="noopener">Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share </a> </li>
</ul></div>

MR D.I.Y. Group (MRDIY MK) is looking to raise US$364m in its upcoming IPO in Malaysia.  The company is the largest home improvement retailer in Malaysia with a market share of about 29.3% in 2018 based on FY2019 revenue. We have covered the basics of the company in our previous three notes:

Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia 

Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition 

Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share  


MR DIY IPO - Store Expansion Still Going Strong, Undemanding Valuation

Malaysia

Mr D.I.Y. Group (M) Berhad operates a chain of department stores. The Company offers hardware, electrical, household, jewellery and cosmetics, stationery, toys, car accessories, and household products. Mr D.I.Y. Group (M) serves customers in Asia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

MR DIY Group M (MRDIY MK)

MR DIY IPO: Inexpensive Valuation Compared to Peers Despite Better Growth Profile

The Malaysian home improvement retailer MR D.I.Y. plans to raise about US$362m (RM1.5bn) at an indicative IPO price of RM1.60 per share. The...

Shifara Samsudeen, ACMA, CGMA

MR DIY IPO: Quality Homes

Malaysian home improvement retailer Mr D.I.Y. has filed for an IPO which will raise approximately RM1.5bn (US$362m), the largest listing in three...

Shifara Samsudeen, ACMA, CGMA

Mr D.I.Y. Group IPO: Valuation Insights

Converge ICT Solutions Inc (ITC PM) is the only major pure-play fixed broadband provider, with an exclusive focus on serving the Philippine fixed...

Arun George

Mr D.I.Y. Group IPO: Make Your Own

$mr dMr DIY is the largest home improvement retailer in Malaysia, with a revenue market share of 29.1% in 2019, according to Frost & Sullivan....

Arun George

MR DIY IPO - Store Expansion Still Going Strong, Undemanding Valuation

Mr. DIY is looking to raise US$500m in its upcoming IPO in Malaysia. The company is the largest home improvement retailer in Malaysia with a...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)