We think its IPO price of RM1.60 is at fair value. The reference price multiples as at Last Twelve Months ended 30 June 2020 are as follows:
LTM PE of 36x
LTM Proforma EV/EBITDA of 23x
LTM P/FCF of 28x
For a business with a fantastic flywheel model and economics, MR D.I.Y. deserves the premium in valuation. RM1.60 is a fair entry price to subscribe to the IPO shares .

The expected  target price  (TP) is RM 2.50

DIY has achieved stellar growth for the last 3 years; the compounded annual growth rate CAGR from FY2017 to FY2019 (2 years period):

Revenue – 36.06%

Net Profits – 22.98%

Store Openings – 29.43%

These are very impressive growth rates when it is even considering Mr Toy and Mr Dollar stores in future. Lets not forget its upcoming warehousing capacity which will support the store expansion and reduce costs as well.

All in all, Mr. DIY looks fairly valued at 31x P/E with ~23% profits annual growth.

Mr Talk Cock, this TP RM8.88 ?? and this Mr DIY boss a goreng kaki also ?

maybe! i am excited for listing date!

This ipo is as bad as a scam. They borrowed alot of money before listing and pay out a huge sum of dividends to themselves. You are practically paying off their loan for no reason.

Bought Brunei business for RM 90 million (according to sharetisfy.com, they studied the prospectus) , a very small market with very poor prospects. They only have 4 stores in Brunei, digest this.

New shares worth nothing issued directly to individual founders before listing. And these shares will be worth RM 1.60 each on the market. Each of them receive like 1.5% to 1.6% of the enlarged market cap. (if i didnt read the prospectus wrongly)

That was the first round. Second round is after listing. A few of their major shareholders do not have a moratorium imposed on them. Including hypis, creador. PE 30 attempting to justify by opening another 200 Mr DIY and dozens of Mr DOLLAR and MR Toy. They only have like one or two dollar/toy shops. Completely unproven. They already have 600 over Mr DIY stores, what make them think the next 200 can offer the same profit margin. Even if it goes exactly as they planned which i say is impossible, PE 30 already price in the growth for the next 10 years.

Who the heck in their right mind is willing to pay extra for 10 years worth of profits for a stock that before listing already  been milked for money like nobody's business? Sad to say, it is fully subscribed. From what I see, this stock should not be worth more than half the ipo price at all.

This is just my opinion, which I think many people share.

WARRANT BUFETT >>
BE. GREEEEEEEDY WHEN OTHERS IN SHIVERINGG🤔👌👍

What's the target price and offer price for big fishes?

Pity to this    SOUR  GRAPE ... ...

Please sell to him RM 2.00 @  A  STEAL  :thumbsup:  - still below  TP  RM 2.50

thanks  Soup grape

Risk averse Sour Grape  >>     

>> ... U better GRAB grandma old fashioned FD@Fixed Deposit for a never failed    1 % chickenfeed@Peanut  in a year

NO  SWEAT....!   ....Can't  wait Monday , Oct 26  

MR  DIY  >> SURE  ONE       $$$$$

suckers... better sell on TO else get trapped

Most overpriced shit ever. Bet it will limit down on first day

cant wait to see what price mrdiy will go after being listed

could go either way i think

UOBKAYHIAN

MR DIY Group (MRDIY MK)
Shopping For A Great Bargain

MRDIY, Malaysia’s most established home improvement retailer offers a compelling 4-
year earnings (2017-21F) CAGR of 20.6%, which is unrivalled in the region (peers’
average: 8.1%). Robust organic growth of 8.9% is further supplemented by new store
rollouts and expansion into new retail formats. Ultimately, it has a sterling track record,
execution ability and a highly cash-generative business model. Initiate coverage with

BUY and target price of RM2.20.    

• The go-to home improvement retailer for the masses. MR DIY Group (MRDIY) is
synonymous with Malaysian households for its quality home improvement products at
affordable prices. Frost & Sullivan’s price benchmark study on a basket of goods found
MRDIY’s prices were on average 21% cheaper than its physical-store competitors. Our ecommerce study found MRDIY’s basket of goods to be 20% cheaper. MRDIY’s attractive
value proposition combined with its convenient locations and large offerings at an average of
16,600 SKUs per store entrench it as the go-to one-stop shop for home improvement
products.

• Undisputable market leader in a growing and resilient segment of the retail sector in
Malaysia. MRDIY holds a 30% market share in home improvement spending in Malaysia. It
could gain further market share via its aggressive expansion in a highly fragmented industry.
Meanwhile, natural organic growth as forecasted by Frost & Sullivan is attractive at 8.9%
(2019-24F). Establishing new concept stores within the toy and dollar store concept will
provide additional impetus for growth. Outperforming East Malaysia MRDIY stores suggests
ample room for growth beyond urban cities.

• Compelling cash generation derived from impressive revenue growth, high
profitability and brief payback. We expect MRDIY’s free cash flow (FCF) to grow at a 5-
year CAGR (2017-22F) of 38.2%. This is supported by a trifecta of factors: a) store
expansion and robust same-store sales (SSS) growth; b) high operational profitability
(EBITDA margins of 26-30% in 2017-22); and c) instant brand recognition, need-based
demand and an impressive operating cost structure that significantly reduce store payback
period to two years from the usual three years.
• Negative perception carves out opportune window. There could be an opportune buying
window, given the uninformed and negative perception among retailers, which was
perpetuated by a media report. But we expect upcoming quarterly results to dispel the
perception of declining prospects (eg SSS growth).
Click here for Blue Top dated 21 Oct 20. MRDIY’s IPO listing is on 26 Oct 20

If drop less than 40 cents already consider lucky..
rumour from insider said itts definitely gonna drop, based on its prospectus, 91% of its proceed will used to repay bank borrowings while remaing 9% pay for IPO fees.  

UOB Kay Hian analyst Philip Wong,
who is initiating a “buy” call with a target price of RM2.20, said MR DIY has a superior earnings growth outlook.

     

Stock: [MRDIY]: MR D.I.Y. GROUP (M) BERHAD

Oct 25, 2020 8:42 AM | Report Abuse

VALUATION/RECOMMENDATION

• Initiate coverage with BUY and target price of RM2.20 ,
based on 31.0x 2021F PE. Its regional ASEAN peers are trading at an average of 26.6x 2021F PE, but we opine that MRDIY well deserves a 15% premium to peers due to:

a) its significantly superior 4-year net profit CAGR (2017-21F) of 20.6% (peers: 8.1%);

b) its established track record and it being the largest home improvement retailer in Malaysia; and

c) home improvement spending in Malaysia is among the highest in the ASEAN region.

Our blue-sky valuations suggest a target price of RM2.50.   :thumbsup: 

Run... average sell price .. 1.73

thank you Mr DIY ..later go support you to buy few bottle of sanitizer

i run road at 1.75

better than nothing .....at least can dine at restaurant if not eat chap fan

SOLD 1.75

MILO DINOOSAAAAURRR SATU

$3.x already.

how many hold till now from start?
huat arrrr