This article first appeared in Capital, The Edge Malaysia Weekly on November 17, 2025 - November 23, 2025

Target price: RM2.09 ADD

CGS INTERNATIONAL (NOV 12): We remain positive on Mr DIY Group (M) Bhd’s (KL:MRDIY) earnings trajectory. Despite cutting our FY26/FY27 core EPS estimates by 1.1%/3.5% due to reduced contribution from its unlisted associate KKV Supply Chain Sdn Bhd, we expect Mr DIY to post a core EPS CAGR of 12.8% between FY24 and FY27 on revenue growth driven by (i) store openings and positive same-store-sales growth (SSSG), (ii) stabilising operating costs and (iii) higher gross margins on the back of a stronger ringgit against the renminbi and US dollar.

We also lift our dividend payout forecasts aggressively for FY25-FY27 as we believe Mr DIY is willing to raise payouts, judging by the consistent increase from 60% in 3QFY23 to 90.5% in 3QFY25 and its assurance that it will not hold on to too much cash, which could drag on return on equity (ROE). This should lift ROE back to 36.6% in FY26, a level last seen in FY22.

With stronger margins from the strengthening of the ringgit against the renminbi and US dollar as well as growing procurement leverage, Mr DIY was able to launch various campaigns and promotions, such as its ongoing RM2 choice stock-keeping units (SKUs) programme. The company said 125 of its Mr DIY stores are involved in the Sumbangan Asas Rahmah (Sara) scheme. This includes the government’s RM100 cash handout to all Malaysian adults above the age of 18. Mr DIY plans to expand the number of stores involved to 300 stores by early FY26.

Sara initiatives plus cash handouts will place more money in consumers’ pockets which, we believe, alongside (i) the civil servant wage increase and bonus, (ii) another round of RM100 cash handout in February 2026 and (iii) potential tourism growth from Visit Malaysia 2026, will lead to higher discretionary spending and improved consumer sentiment, driving Mr DIY’s SSSG and revenue growth in FY26. These are key potential rerating catalysts for the company.

We retain our “add” call and target price on Mr DIY. The shares are currently trading at a 2026F PER of 20.4 times, which we think is undemanding versus global peer Dollarama’s 40 times, offering an attractive entry point. Downside risks are fewer store rollouts, causing lower revenue growth, and weaker margins.

Target price: RM1.19 NEUTRAL

MBSB RESEARCH (NOV 12): Hartalega Holdings Bhd’s (KL:HARTA) core earnings for the first half of the financial year ending March 31, 2026 (1HFY26), came in below expectations at 37% of our and consensus’ full-year earnings estimates. Nevertheless, we maintain a “neutral” stance over the challenging glove outlook and macroeconomic uncertainties, moderated by continuous cost optimisation plans. We revise our target price from RM1.24.

Uncertainties from the US tariff policies, intensified competition with China’s glove exports and ongoing global overcapacity remain the downside risks for the group’s performance in 2HFY26. To combat US tariffs which caused China’s glove exports to the US to take a nosedive, shipments to other markets expanded and Chinese manufacturers expanded their operations into Southeast Asia to circumvent the tariffs, consequently increasing operating costs and pricing pressures on local manufacturers.

Despite the near-term downside risks, long-term drivers are favourable, largely because the sustained global demand has surpassed pre-pandemic levels. Restocking activity, while slow, is recovering due to a depletion of pandemic-era stockpiles. Nevertheless, we expect the recovery to be visible by 1H26 with the challenges continuing to place a lid on sectoral growth.

Target price: RM3.15 BUY

RHB RESEARCH (NOV 11): Kerjaya Prospek Group Bhd (KPG) (KL:KERJAYA) has secured two jobs worth RM197.7 million from Serta Usaha Sdn Bhd and Tanjung Pinang Development Sdn Bhd. We estimate the profit after tax margin for each project to be around 10%.

The latest job wins bring KPG’s YTD FY25 job replenishment value to RM1.16 billion. Its outstanding order book stands at about RM3.7 billion, translating into an order book-to-revenue cover ratio of 2.1 times. In the long run, KPG may continue to benefit from Eastern & Oriental Bhd’s (KL:E&O) target to launch property projects worth about RM3.8 billion from 2026 to 2030. The company is also looking at RM2 billion to RM3 billion worth of tenders related to industries — data centres, factories and warehouses — that would be entered into via its joint venture with Samsung C&T.

We make no changes to our earnings estimates as the latest job wins are within our assumed FY25 job replenishment value of RM1.6 billion. Hence, we maintain our target price. We think KPG’s market valuation — now at an FY26F PER of 15.5 times — still has room for growth, underpinned by the robust demand for property in Penang, the Klang Valley and Johor.

Target price: RM1.90 BUY

CIMB SECURITIES (NOV 10): Mah Sing Group Bhd (KL:MAHSING) will acquire a 2.8-acre leasehold tract near Karpal Singh Drive in Jelutong, Penang, for RM51.8 million from Penang Development Corporation. It plans to develop a mixed-use project (M Cora) with an indicative gross development value (GDV) of RM528 million. We are positive on the news because of the competitive pricing of the property, strategic location and proximity to the Bandar Sri Penang station along the LRT Mutiara Line.

Although the implied land cost-to-GDV ratio for M Cora is attractive at just under 10%, we expect Mah Sing to incur additional backfilling costs to strengthen the site’s soil conditions. As such, we project M Cora to deliver an Ebit margin in line with the group’s typical range of 17% to 18% for its M Series developments. The payment terms for the land are also favourable as they will be staggered over three years.

For reference, Mah Sing’s latest Penang development, M Zenni, featuring freehold serviced residences starting at RM480,000 per unit, has achieved a 70% take-up rate. We maintain our “buy” call and target price on the stock and make no changes to our earnings estimates pending the finalisation of M Cora’s pricing structure.

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