00 200 400 600 800 1000 1200 1400 mier csi index 100

0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
MIER CSI Index 100-pt threshold
3.91
4.11
4.31
4.26
2.00
2.50
3.00
3.50
4.00
4.50
2016 2017 2018 2019
RM m
Revenue per store
190.0
226.4
189.7
118.0
51.0
233.5 232.0
-
50.0
100.0
150.0
200.0
250.0
2019 Monthly
Average
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
RM m
Revenue

Retail
│
Malaysia
Mr D.I.Y. Group (M) Bhd
│
January 28, 2021
9
MDGM’s extensive store reach also provides it with a strong moat to ward off
threats from e-commerce players, in our view. This is underpinned by Mr.
D.I.Y.’s rapid expansion , especially in suburban and rural areas, putting its
stores in accessible locations closer to the consumers, diminishing the need to
order products online, especially when delivery costs and time are factored in.
That being said, Mr. D.I.Y. already has an established e-commerce presence,
via its own e-commerce website since 2018 (), as
well as other e-commerce aggregator platforms, such as Lazada and Shopee.
Figure 12: Extensive Mr. D.I.Y. store reach across all states in Malaysia*
SOURCES: MR. D.I.Y. WEBSITE, CGS-CIMB RESEARCH
* Pins represent Mr D.I.Y. locations
Forecasting a commendable revenue and core net profit
CAGR of 22.2% and 23.7% respectively over FY19 - 22F
We forecast a core net profit (excluding one-offs such as IPO-related expenses)
CAGR of 23.7% over FY19-22F, underpinned by a 22.2% revenue CAGR. This
will be driven mainly by a 22.9% store growth CAGR over FY19-22F.
Upside risks to our forecasts include : i) stronger SSSG recovery in FY21-22F;
ii) better average revenue per store for Mr. TOY and Mr. DOLLAR; and iii) higher
gross margins.
Downside risks to our forecasts include : i) Protracted period of movement
restrictions due to the Covid-19 outbreak, ii) Lower-than-expected average
revenue per store for Mr. TOY and Mr. DOLLAR operations and iii) a surge in
inputs costs.

Retail
│
Malaysia
Mr D.I.Y. Group (M) Bhd
│
January 28, 2021
10
Figure 13: Expecting net margins to recover in FY21F on the back of better footfall from fewer movement restrictions and lower
interest cost
SOURCES: CGS-CIMB RESEARCH ESTIMATES, COMPANY REPORTS
Figure 14: Key assumptions
SOURCES: CGS-CIMB RESEARCH ESTIMATES, COMPANY REPORTS
Figure 15: Key cost items (% of sales) – Cash rental and employee-related expenses
SOURCES: CGS-CIMB RESEARCH ESTIMATES, COMPANY REPORTS
827.5
1,229.2
1,771.1
2,275.6
2,553.9
3,337.2
4,151.0
146.1
210.8
308.3
326.3 338.7
475.3
617.2
17.7%
17.1%
17.4%
14.3%
13.3%
14.2%
14.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
FY16 FY17 FY18 FY19 FY20F FY21F FY22F
RM m
Growth % Core PAT Core PAT margin % (RHS)
FY16 FY17 FY18 FY19 FY20F FY21F FY22F
Net outlet openings
- Mr. D.I.Y. 65 110 113 112 125 100 100
- Mr. TOY 0 0 0 14 22 25 25
- Mr. DOLLAR 0 0 0 0 10 50 50
SSSG 0.9% 6.5% 4.5% 1.8% -8.0% 8.0% 5.0%
Average revenue per store (RM m)
- Mr. D.I.Y. 3.91 4.11 4.31 4.26 3.92 4.23 4.44
- Mr. TOY na na na 0.29 0.80 1.20 1.80
- Mr. DOLLAR na na na na 1.00 2.50 2.63
Gross margins
- Mr. D.I.Y. 45.2% 44.1% 43.7% 42.5% 42.5% 42.5% 42.5%
- Mr. TOY na na na 55.0% 55.0% 55.0% 55.0%
- Mr. DOLLAR na na na na 28.0% 28.0% 28.0%
5.1%
5.0% 5.0%
5.1%
6.2%
6.0%
5.7%
9.7%
10.2%
9.8%
10.0%
10.8%
10.0%
9.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
FY16 FY17 FY18 FY19 FY20F FY21F FY22F
Cash rental expenses Employee-related expenses

Retail
│
Malaysia
Mr D.I.Y. Group (M) Bhd
│
January 28, 2021
11
Strong cash generation ability; internally funded capex
We expect MDGM to continue to generate healthy free cash flows over FY20-
22F, premised on its well-managed cost structure and strong cash flow
management. Our cash flow forecasts indicate that store capex over FY20-22F