Home improvement retail heavyweight; fairly valued

C

onsu

mer

Dis

cre

tionary

M

ala

ysi

a

2.98

January 29, 2021

THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD

SEE PAGE 33 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

PP16832/01/2013 (031128)

Jade Tam [email protected] (603) 2297 8687

MR D.I.Y. Group (M) (MRDIY MK)

Home improvement retail heavyweight; fairly valued

Largest home improvement retailer in Malaysia Mr D.I.Y. Group Malaysia (MDGM) is the largest homegrown home

improvement retailer in Malaysia with a store network of 688 stores as at

end-3Q20 (2019: 593 stores). Not only does MDGM have a presence in

every state, it also has 4 stores located in Brunei. MDGM has 656 “MR.

D.I.Y.” stores, 28 “MR. TOY” stores and 4 “MR. DOLLAR” stores in

Malaysia. All its stores are directly owned with no franchise or agency

arrangements. “MR.D.I.Y.” stores carry c.16,600 SKUs per store and

recorded c.9.2m transactions per month on average in 3Q20.

Competitive advantage against peers MDGM operates in a relatively fragmented market which provided a key

opportunity to carve out a dominant market position with 29% share of

the home improvement market in 2019 in terms of revenue. Leveraging

on its vast network of stores, it enjoys economies of scale that allow it

to sell its products at very competitive pricing and with strong cashflows,

average payback periods have been less than two years for its stores in

FY16 and FY17. Based on Frost & Sullivan data, the home improvement

retail sector in Malaysia is still underpenetrated, and is projected to

grow 10.2% CAGR, from MYR7.7b in 2019 to MYR12.5b in 2024.

3-year net profit CAGR of 22% We estimate a 3-year (FY19-FY22E) net profit CAGR of 22%, driven

largely by a 3-year revenue CAGR of 19% and pre-tax profit margin

increase to 21% in FY22E from 19% in FY19. Our earnings estimates have

imputed for new store expansion of 175 (net) stores p.a. in Malaysia

while its Brunei stores remain at 4 stores. In terms of SSSG, we expect it

to fall -5% in FY20 on the back of domestic store closures (from 18 Mar to

3 May) during the movement control order led by the outbreak of COVID-

19. That said, we project SSSG to rebound to 13% in FY21 before

normalising to a steadier pace of +2% in FY22.

Target price of MYR3.05 We peg MDGM’s earnings to 37x FY21 PER to derive our target price of

MYR3.05. Our target PER multiple implies a 20% premium to its FY21

regional peer market weighted average of 31x given MDGM’s higher 3-

year (FY19-FY22E) net profit CAGR of 22% against its regional peer

average of 9%. MDGM’s PEG of 1.7x at the current share price of

MYR2.98, is also more favourable relative to its peer average of 7.1x.

Share Price MYR 2.98

12m Price Target MYR 3.05 (+3%)

HOLD

Company Description

Statistics

52w high/low (MYR)

3m avg turnover (USDm)

Free float (%)

Issued shares (m)

Market capitalisation

Major shareholders:

51.0%

15.3%

6.9%

6,277

7.3

MR. D.I.Y. Group (M) Bhd. is a holding company which

engages in the retail of home improvement products

and mass merchandise.

Bee Family Ltd

Hyptis

Platinum Alphabet

na/na

99.9

MYR18.7B

USD4.6B

Price Performance

90

100

110

120

130

140

150

160

170

180

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

3.20

3.40

Oct-20 Nov-20 Nov-20 Dec-20 Dec-20 Jan-21 Jan-21

MR D.I.Y. - (LHS, MYR) MR D.I.Y. / Kuala Lumpur Composite Index - (RHS, %)

-1M -3M -12M

Absolute (%) (2) 69 na

Relative to index (%) 2 60 na

Source: FactSet

FYE Dec (MYR m) FY18A FY19A FY20E FY21E FY22E

Revenue 1,771 2,276 2,472 3,256 3,793

EBITDA 532 639 672 885 995

Core net profit 308 330 331 510 591

Core EPS (sen) 4.9 5.3 5.3 8.1 9.4

Core EPS growth (%) 46.8 6.9 0.4 54.2 15.8

Net DPS (sen) 2.1 8.0 2.1 3.3 3.8

Core P/E (x) na na 56.5 36.6 31.6

P/BV (x) na na 22.3 16.3 12.5

Net dividend yield (%) na na 0.7 1.1 1.3

ROAA (%) 26.3 20.5 17.2 23.1 22.9

EV/EBITDA (x) 36.2 31.1 29.0 21.9 19.3

Net gearing (%) (incl perps) 4.8 141.8 13.9 net cash net cash

Consensus net profit - - 324 497 614

MKE vs. Consensus (%) - - 2.0 2.7 (3.7)

January 29, 2021 2

MR D.I.Y. Group (M)

Value Proposition

Mr D.I.Y. Group Malaysia (MDGM) is the largest home

improvement retailer in Malaysia, with an estimated 29%

market share in FY19 by revenue.

As at end-3Q20, it had 656 “MR. D.I.Y.” stores across

Malaysia and Brunei. It also operates 28 stores in Malaysia

under the “MR. TOY” brand and 4 stores under “MR

DOLLAR”.

The stores carry about 16,600 SKUs on average per store

and recorded approximately 9.2m transactions per month

on average in 3Q20.

Sales by product category (FY19)

Source: Company

Industry Drivers

MDGM’s market share by revenue

Source: Company, Maybank Kim Eng

1. Frost & Sullivan believes Malaysia’s home improvement

retail sector is still underpenetrated with 216.3 home

improvement retail stores per million capita as at end-

Dec 2019, which is lower than the ratios of 231.4 and

236.6 stores in Thailand and Japan respectively.

2. Frost & Sullivan projects this sector to grow at a fairly

robust pace of 10.2% CAGR, from MYR7.7b in 2019, to

MYR12.5b in 2024.

3. MDGM’s Malaysia store network of 640 as at 6 Sep 2020 is

more than 7x larger than that of its closest competitor in

the household and furnishing product category.

Financial Metrics

We project a 3-year (FY19-FY22E) revenue CAGR of 19%

mainly from higher contributions from its Malaysia

segment where the bulk of its stores are located.

Our model has imputed for 132/175/175 net new stores

p.a. from FY20E/FY21E/FY22E.

We expect MDGM’s pre-tax profit margins to increase to

21% in FY21 as the group pares down its borrowings and

interest expenses declines.

40% dividend payout policy with relatively stable capex

requirements and positive FCF generation of above

MYR350m in FY20-FY22E.

EBITDA and net profit margins (FY16-FY19)

Source: Company

Swing Factors

Upside

Stronger-than-expected consumer demand or disposable

income growth, which would lead to increased consumer

spending and thus same-store sales growth.

Improved cost efficiencies stemming from factors such as

better sales mix or lower distribution costs that could

lead to better operating margins.

Downside

Slower-than-expected economic growth which would

dampen consumer demand and thus SSSG.

Supply disruptions and currency volatility especially since

the group imports more than 75% of its products from

China.

Slower-than-expected store openings which could

dampen revenue growth, as well as the risk of

cannibalization if too many stores are opened in the

same vicinity, leading to saturation.

[email protected]

Hardware, 17.9%

Household &

furnishing, 38.6%

Electrical, 10.8%

Stationery & sports

equip, 9.2%

Others, 23.5%

15.5%

19.9%

25.2%

29.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2016 2017 2018 2019

31.3% 30.2% 29.9% 28.1%

17.7% 17.1% 17.4% 14.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2016 2017 2018 2019

(%)

EBITDA margin Net profit margin

1

mailto:[email protected]

mailto:[email protected]

January 29, 2021 3

MR D.I.Y. Group (M)

Contents

Page

Investment thesis 4

A relative young company 5-10

A homegrown home improvement store 5

A wide range of products 6

Main source of suppliers 7

Central distribution centre 8

The store formats 8-10

Competitive strengths 11-13

Future plans 14

Shareholders of MDGM 14-15

The listed regional peers 16

A review of FY19 results 17

Looking forward 18-23

Valuations 24-25

Key risk factors 26

Financials 30-31

Appendix 1: Corporate structure 32

Appendix 2: Board of directors 33

Appendix 3: Key senior management 34

January 29, 2021 4

MR D.I.Y. Group (M)

Investment thesis

Introduction

Mr D.I.Y. Group Malaysia (MDGM) is the largest home improvement retailer in

Malaysia. As at end-3Q20, it had a total of 684 “MR. D.I.Y.” stores across

Malaysia, with a presence in every state, and 4 stores in Brunei. MDGM has 656

“MR D.I.Y” brand stores, and it also operates 28 stores in Malaysia under the

“MR. TOY” brand and 4 stores under the “MR. DOLLAR” brand. All stores are

operated directly and not through any franchise or agency arrangements. The

stores carry about 16,600 SKUs on average per store and recorded approximately

9.2m transactions per month on average in 3Q20.

Competitive edge

MDGM’s key advantage is its dominant market position in an otherwise

fragmented segment, with an estimated 29% share of the home improvement

market in 2019 in terms of revenue. With 593 stores in Malaysia and Brunei as at

end-2019, it enjoys economies of scale that allow it to sell its products at very

competitive pricing and with strong cashflows, average payback periods have

been less than two years for stores that were opened in FY16 and FY17. Frost &

Sullivan believes that the home improvement retail sector in Malaysia is still

underpenetrated, and projects this sector to grow at a fairly robust pace of

10.2% CAGR, from MYR7.1b in 2019, to MYR12.5b in 2024.

The earnings growth drivers

Earnings growth into the near future will be driven predominantly by new MR.

D.I.Y. store openings, as management targets at least 100 net new stores in

2020. Although FY20 earnings were adversely impacted by store closures during

the movement control order (MCO 1.0, from 18 Mar to 3 May 20), MDGM

experienced a sharp sales rebound from May 20 onwards which continued on

throughout 3Q20. Hence, we expect MDGM to deliver strong same-store sales

growth (SSSG) in FY21 before normalising to a sustainable SSSG rate from FY22

onwards. Management will also continue to focus on attractive price-to-quality

product offering and convenience to its customers.

Risk factors

Risk factors include a) licensing issues whereby as at end-Oct 2019, about a

quarter of MDGM’s stores and certain of its warehousing and storage units do not

have a business licence and/or signboard licence, b) MDGM’s vulnerability to

infringement claims by third parties pertaining to its own white-label products,

c) vulnerability to disruptions in its supply chain, given that China accounts for

more than 70% of its imports, d) exchange rate fluctuations, e) labour issues

since foreign nationals accounted for 15% of its full-time employees end-1H20.

Target price of MYR3.05

We value MDGM at MYR3.05, pegging its earnings to 37x FY21 PER. Our valuation

multiple reflects a 20% premium to its ASEAN regional home improvement retail

peers given that MDGM’s 3-year (FY19-FY22E) net profit CAGR of 21.5% is

expected to outpace its regional peer average of 8.9%, while its PEG of 1.7x at

the current share price of MYR2.98, is also more favourable relative to its peer

average of 7.1x. That said, we believe that MDGM’s superior earnings CAGR

prospects have been priced in. Hence, we initiate the stock with a HOLD with an

upside of 3%.

January 29, 2021 5

MR D.I.Y. Group (M)

A relatively young company

A homegrown home improvement store

Mr D.I.Y. Group (Malaysia) Bhd (MDGM) traces its history back to 2005 when its

founder, Mr Tan Yu Yeh, opened his first hardware store along Jalan Tuanku

Abdul Rahman in Kuala Lumpur. What makes the story all the more interesting is

that Mr Tan was a remisier at that time, working with Inter-Pacific Securities

from 1997 to 2009, and an engineer with Komag USA (M) Sdn Bhd, prior to that

(from 1996-1997). He graduated with a BSc in Physics from University of Malaya

in 1996. MDGM was incorporated on 12 October 2010 under the name of Mr D.I.Y.

Enterprise Sdn Bhd, and assumed the name Mr D.I.Y. Group (M) Bhd on 4 June

2019.

The largest home improvement retailer in Malaysia

In a span of just 15 years, MDGM has expanded rapidly and as at end-3Q20, it

comprises 684 stores across Malaysia, with a presence in every state, and 4 stores

in Brunei. It has 656 “MR D.I.Y.” stores and also operates 28 stores in Malaysia

under the “MR. TOY” brand and 4 stores in Malaysia under their newly launched

“MR. DOLLAR” brand.

To note that MDGM’s substantial shareholders hold a controlling interest in the

retail operations under the MR. D.I.Y. brand name in Thailand, Singapore,

Indonesia, Philippines, Cambodia and Laos, but the current Licensing Agreement

for MR DIY only grants the use of the intellectual property rights in Malaysia and

Brunei (under Mr.D.I.Y. (B) Sdn Bhd [MD (B)]). MDGM acquired a 100% stake in MD

(B) for MYR104.8m in May 2019.

All stores are operated directly and not through any franchise or agency

arrangements. As at end-3Q20, all but one of the 688 stores operated on

tenanted properties, with just one that operates on owned property.

Fig 1: Revenue contribution by region (FY19) Fig 2: Revenue per average number of stores (FY19)

Source: Company PM = Peninsular Malaysia Source: Company, Maybank KE PM = Peninsular Malaysia

PM - Central, 32%

PM - East coast , 13% PM - North,

16%

PM - South, 21%

East Malaysia,

17%

Brunei, 1%

3.3

4.0 4.2 4.4 4.4

5.0 5.0

-

1.0

2.0

3.0

4.0

5.0

6.0

PM -EastCoast

PM -North

Total PM -South

PM -Central

EastMsia

Brunei

(MYR'm)

January 29, 2021 6

MR D.I.Y. Group (M)

A wide range of household products

MDGM’s products comprise both third party branded products and white-label

products sold under the “MR. D.I.Y.” and “MR. DIY Premium” brands.

MDGM was the sole or exclusive distributor/agent in Malaysia for 56 third party

brands which include RMZ, City, Fixman, Carsun and Aeropak. In FY19, it was also

the leading distributor in Malaysia for Philips, Faber Castell, Energizer and brands

held by Procter & Gamble. Its popular white-label products include “MR. D.I.Y.”

branded batteries, hardware tools and home appliances.

Fig 3: Examples of MR. D.I.Y. and MR. DIY Premium products

Source: MR DIY Website

According to its website, products in each store are divided into ten categories –

hardware, household, electrical, furnishing, car accessories, stationery & sports,

toys, gifts, computer & mobile accessories and jewellery & cosmetics, and Fig. 5

below shows the sales contribution by product category.

Fig 4: MR. D.I.Y. product categories

Hardware Household Electrical Furnishing Car accessories

Stationery & sports Toys Gifts Computer & mobile Jewellery & cosmetics

In FY19 and 3Q20, the average value of a transaction in its stores was MYR22.20

and MYR26.60 respectively, with each store carrying about 16,600 SKUs on

average per store as at 3Q20. The stores recorded approximately 8.4m and 9.2m

transactions per month on average in FY19 and 3Q20 respectively.

January 29, 2021 7

MR D.I.Y. Group (M)

Fig 5: Sales by product category (FY19) Fig 6: Gross profit margin by product category (FY19)

Source: Company Source: Company

Products sourced mainly from China

In 2019, 73.2% of MDGM’s products were imported from outside of Malaysia, with

72.4% of its products sourced from end suppliers in China. Other countries of

import include Thailand and Indonesia. MDGM purchases from more than 800 end

suppliers and its largest end supplier accounted for less than 5% of total

purchases 2019.

MDGM’s Top 5 suppliers are made up of Charterwin Trading, Alliance integrity

Trading, Win Seng Hung, Milann Bridge and Top Point Trading. A point to note

from the chart below is that Win Seng Hung and Top Point Trading are affiliated

entities while Charterwin Trading and Alliance Integrity Trading are entities held

by a common shareholder.

Fig 7: Breakdown of 2019’s top 5 supplier purchases

Source: Company

Hardware 18%

Household & furnishing

39% Electrical

10%

Stationery & sport

equipment 9%

Others 24%

38.0% 38.5% 41.5% 42.3%

45.0%

51.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Charterwin Trading, 32.0%

Alliance Integrity

Trading, 33.9%

Win Seng Hung, 18.0%

Milann Bridge, 10.4%

Top Point Trading, 5.7%

January 29, 2021 8

MR D.I.Y. Group (M)

Central distribution centre in Balakong

MDGM’s central distribution centre is situated in Balakong, Seri Kembangan,

Selangor. It comprises 11 closely proximate facilities that occupy a land area of

1,257,000 sq ft, with a gross floor area of 706,000 sq ft.

MDGM has also purchased two plots of land totalling 260,000 sq ft, on which it

plans to construct its first warehousing facility which will use technology-driven

operational systems.

Additionally, MDGM has also entered into an agreement to acquire (i) a plot of

freehold land along with a warehouse building located in Balakong, Seri

Kembangan, Selangor with a total area of 80,300 sq ft. and (ii) a plot of

leasehold land located in the same aforementioned area with a total land area of

85,340 sq ft.. MDGM intends to develop both plots of land to expand its

warehouse facilities.

The distribution centre’s inventory levels are managed through Qube Pos, which

is an inventory management software system provided by the group’s associate,

Qube. MDGM currently holds a 30% equity interest in Qube, which it acquired in

June 2017 for MYR1.5m.

Two types of shop formats, almost all are leased

According to MDGM, more than 90% of MDGM’s stores were profitable as at end-

2019. Store openings have averaged more than 100 since 2017 while store

closures have been negligible at just 5-9 stores over the past four years.

Fig 8: Store count

2016 2017 2018 2019

Existing store count 179 244 354 467

New stores opened 70 115 122 132

New stores closed (5) (5) (9) (6)

Total store count 244 354 467 593

Source: Company

MDGM’s stores come in two formats i.e. (i) retail mall-based stores and (ii)

standalone shopfront stores. The former occupy a dedicated shop space within

shopping malls/business parks while the latter occupy shop-lots in buildings. In

1H20, retail mall-based stores accounted for 58% of group revenue.

Standalone shopfront stores have seen increasing share of revenue contributions,

from just 17.4% in 2016 to 42.1% in 1H20.

According to its website, most stores are about 10,000 sq. ft. on average in size.

All “MR. D.I.Y.” stores are managed directly and in collaboration with large

retailers and mall owners, operating as a mini anchor tenant in Tesco, Giant

AEON and AEON BIG. As at 1H20, 134 of the stores were located within, or

adjacent to the premises of these retailers.

January 29, 2021 9

MR D.I.Y. Group (M)

Fig 9: 1H20 revenue split: retail-mall based stores vs. standalone shopfronts

Fig 10: 1H20 breakdown of store size


All but one of its 688 (as at end-3Q20) stores operate on tenanted properties

under lease agreements for a typical initial period of three years, with the option

to extend for multiple periods of up to three years each.

Average capex spent on opening a new store (excluding inventory) has averaged

between MYR552k and MYR581k per store from FY16 to 1H20, with an average

payback period of under two years in FY16 and FY17.

Each store is staffed on average by 13 employees which include a supervisor and

two assistant supervisors. Store staff are incentivised with monetary bonuses for

meeting sales targets for selected products and for reducing the loss of stock at

their store.

Online sales are also possible through the group’s own dedicated e-commerce

website www.mrdiy.com.my and through third party e-commerce retail

platforms such as Shopee (launched in Nov 2017) and Lazada (Nov 2018). In 1H20,

e-commerce sales via its own and third party e-commerce platforms accounted

for 1.6% of total sales revenue.

Fig 11: Revenue contribution according to store format

Source: Company, Maybank KE

Retail mall-based, 58%

Standalone shopfront,

42%

<6k sq ft, 16%

6k sq ft - 12k sq ft,

63%

>12k sq ft - 20k sq ft,

20%

> 20k sq ft, 1%

82.6% 76.8%

69.0%

62.0%

17.4% 23.2%

31.0%

38.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

2016 2017 2018 2019

Retail mall-based Standalone shopfront

http://www.mrdiy.com.my/

January 29, 2021 10

MR D.I.Y. Group (M)

Fig 12: A retail mall-based store Fig 13: A standalone shopfront store

Source: Online Source: Online

A fair share of non-national employees

MDGM employed a total of 10,249 full-time staff and 21 staff on a contract basis

as at end-1H20. Of its total full-time staff, 1,527 or 14.9% were non-Malaysian

nationals. About 46.8% of its employees were compensated at the Malaysian

statutory minimum wage of MYR1,200 per month.

January 29, 2021 11

MR D.I.Y. Group (M)

Competitive strengths

A dominant market position

MDGM’s key advantage is its dominant market position in an otherwise

fragmented market segment. According to Frost & Sullivan, MDGM is today the

largest home improvement retailer in Malaysia with an estimated market share of

29.1% in 2019, based on FY19 revenue. In fact, given the group’s rapid growth,

MDGM’s market share has expanded at a fast pace, rising from just 15.5% in 2016

to 29.1% in a span of just three years.

Fig 14: MDGM’s market share by revenue

Source: Frost & Sullivan

Based on most recent data from Frost & Sullivan, MDGM’s Malaysia store network

of 640 (as at 6 Sep 2020) is currently more than 7x larger than that of its closest

competitor in the household and furnishing product category. Moreover, it is the

only home improvement retailer with a presence in every state in Malaysia.

MDGM’s dominant position will be further enhanced as it scales up the number of

stores that it opens, with a target of at least 100 additional stores in 2020.

Fig 15: Selected key players in the home improvement retail sector in Malaysia (6 Sep 2020)

Brand Presence in Msia Stores

MDGM All states including Federal Territories 640

One Stop Superstore SBH, SWK, LBN 83

Daiso All states except TRG, PHG, LBN 76

Supersave SBH, SWK, SGR, NSN, JHR, PHG 71

Yubiso KUL, SR, PRK, PNG, NSN, JHR, MLK, PHG, KTN, TRG 65

Ninso JHR, SWK, SBH, SGR, KUL, MLK, NSN, PHG 42

SWC SGR, PRK, NSN, KTN, MLK 40

Fun N Cheer KUL, SGR, JHR, PRK 31

Kaison KUL, SGR, PRK, MLK, NSN, KTN, KDH, PHG, SBH, SWK 29

Miniso KUL, SGR, PNG, MLK, JHR, PHG, SWK 29

Ace Hardware KUL, SGR, PRK, PNG, JHR 22

Team DIY Hardware SGR 14

Setiahub KTN, SGR, NSN, KUL 13

Muji KUL, SGR, JHR 9

Noko SGR, PNG, JHR 6

5ringgit Shop PNG, PRK 5


Kuala Lumpur (KUL), Selangor (SGR), Negeri Sembilan (NSN), Melaka (MLK), Johor (JHR), Penang (PNG), Perak (PRK), Kedah (KDH), Kelantan (KTN), Terengganu (TRG), Pahang (PHG), Sarawak (SWK), Sabah (SBH), Labuan (LBN)

15.5%

19.9%

25.2%

29.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2016 2017 2018 2019

January 29, 2021 12

MR D.I.Y. Group (M)

Operating in an under-penetrated market

Frost & Sullivan believes that the home improvement retail sector in Malaysia is

still underpenetrated, and will continue to grow amid increasing urbanization

and household income. Malaysia has approximately 216.3 home improvement

retail stores per million people as at end-Dec 2019, which is lower than the ratios

of 236.6 and 231.4 stores in Japan and Thailand respectively.

Moreover, Frost & Sullivan projects this sector of the economy to grow at a fairly

robust pace of 10.2% CAGR, from MYR7.7b in 2019, to MYR12.5b in 2024.

Fig 16: No. of home improvement retail stores per million people as at FY19

Fig 17: Home improvement retail sector as % of total retail sales as at FY19

Source: Frost & Sullivan Source: Frost & Sullivan

Competitive pricing with large product variety

MDGM’s wide network of stores has allowed it to source for its stocks at very

competitive prices, capitalizing on its economies of scale. The company sources

its products from over 800 end suppliers, with China accounting for more than

70% of total products in 2019. To optimize its per-unit logistics costs,

management usually consolidates its import purchases from end suppliers in

China into full container loads before shipping.

Fig 18: Product price comparison between MR D.I.Y. and that of its competitors (average pricing)


216.3 217.8 231.4 236.6

370.2

405.3

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

Msia UK Thai Japan US Aust

12.0%

9.0% 8.9%

6.7% 6.7%

5.6%

3.1% 3.0%

2.1% 1.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Thai Viet US UK Aust Japan Msia Phils Indo SG

January 29, 2021 13

MR D.I.Y. Group (M)

Leverage from strong cash flows and efficiencies

MDGM’s operational track record has allowed the group the flexibility to rapidly

expand its network for economies of scale, while further enhancing its rapport

with suppliers via rapid settlement practices. Strong cashflow generation has also

translated to shorter payback periods averaging less than 2 years for its stores in

FY16 and FY17.

Revenue growth has been strong with a historical 3-year (FY16-FY19) revenue

CAGR of 40%, driven by aggressive store openings and positive SSSG (0.9% in

2016, 6.5% in 2017, 4.5% in 2018 and 1.8% in 2019).

Cost efficiencies have kept margins high. Cost efficiencies have stemmed

from factors such as (a) economies of scale from the expanding store

network, (b) the direct sourcing of products, (c) cost minimization through

centrally managed inventory management and product distribution systems

and (d) the maintenance of its own delivery fleet of 94 trucks. As a result,

EBITDA margins held up over 28% from FY16-FY19 while net profit margins

averaged at about 17%.

Strong cashflow generation has translated to short payback periods of less

than two years in FY16 and FY17 across its stores on average.

Fig 19: Strong revenue growth Fig 20: Historical EBITDA and net profit margins


827

1,229

1,771

2,276

0

500

1,000

1,500

2,000

2,500

FY16 FY17 FY18 FY19

(MYR'm)

31.4% 30.3% 30.0% 28.1%

17.7% 17.1% 17.4%

14.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2016 2017 2018 2019

(%)

EBITDA margin Net profit margin

January 29, 2021 14

MR D.I.Y. Group (M)

Future plans

Management’s future plans and strategies for the business include:

Continued store network expansion. Management targets at least 100 net

new “MR D.I.Y.” stores in 2020.

Delivering positive same-store sales growth (SSSG). With the exception of

FY20, where SSSG is expected to be negative as a result of store closures

during MCO1.0 but partially mitigated by sharp sales recovery post MCO 1.0,

we estimate that MDGM will be able to report positive SSSG from FY21

onwards by increasing its brand awareness, aided in part by the store

network expansion. Management will also continue to focus on attractive

price-to-quality product offering and convenience to its customers. Average

SSSG was 0.9%, 6.5%, 4.5% and 1.8% in FY16, FY17, FY18 and FY19

respectively.

The introduction of new retail formats. The first “MR. TOY” store was

opened in May 2019, focusing on selling products for babies and children and

as at end-3Q20, 28 “MR. TOY” stores had been opened. Additionally, MDGM

opened their maiden “MR. DOLLAR” store on 7 Aug 2020, selling a variety of

products ranging from food and beverage to toiletries and hardware tools.

All products are priced at either MYR2 or MYR5 per item. As at end-3Q20,

there are 4 “MR. DOLLAR” stores in operation with a target to reach 10

stores by end-FY20. We believe that MDGM intends to continue expanding

the number of both “MR. TOY” and “MR. DOLLAR” stores in the near future.

Shareholders of MDGM

The major shareholders of MDGM are the Bee Family Ltd, Hyptis (which is a

subsidiary of private equity Creador Funds) and Platinum Alphabet.

Creador Funds, through Hyptis, invested 5% in MDGM in 2016 and increased its

stake to 18% over the next two years. The Creador Funds are diversely owned by

99 limited partners/shareholders in aggregate predominantly consisting of

institutions such as university endowment funds, pension funds, fund of funds,

foundations, not-for-profit organizations and family offices from North America,

Europe and Asia.

Fig 21: DIRECT shareholding structure before IPO

Shareholding

Bee Family Ltd 54.3

Tan Yu Yeh 3.1

Tan Yu Wei 1.9

Hyptis (Creador Funds) 18.0

Platinum Alphabet 7.4

Relatives & non-related mgt 15.3

Public -

Total 100.0

Source: Company

January 29, 2021 15

MR D.I.Y. Group (M)

The table below sets out the major shareholders of Bee Family Ltd and Platinum

Alphabet. To note that the major shareholders of Bee Family Ltd are Yeh Family

Ltd and WEI Future Capital Ltd. Tan Yu Yeh is the sole shareholder of Yeh Family

Ltd, while Tan Yu Wei is the sole shareholder of WEI Future Capital Ltd. Tan Yu

Yeh and Tan Yu Wei are brothers.

Fig 22: Shareholders of Bee Family Ltd and Platinum Alphabet

Bee Family Ltd

Platinum Alphabet Yeh Family Ltd 54.3

Gan Choon Leng 32.0

WEI Future Capital Ltd 32.8

Tan Gaik Hoon 32.0

Tan Lee Hon 4.7

Toh Hooi Hak 18.0

Poh Chu Tan 2.9

Toh Lay Fan 10.8

Tan Lee Ching 2.6

Toh Lee Soo 7.2

Tan Lay Keow 1.9

100.0

Tan Chin Hua 0.9

100.0

Source: Company

To elaborate on the family relationship between shareholders and management,

Tan Yu Yeh is:

Sole director and indirect shareholder of Bee Family Ltd

Sole director and sole shareholder of Yeh Family Ltd

Brother of Tan Yu Wei, Tan Lee Ching, Tan Lee Hon, Tan Lay Keow

In-law to Poh Chu Tan (Tan Lee Hon’s husband) and Tan Chin Hua (Tan Lee

Ching’s husband), and

Cousin of Tan Yew Hock and Tan Yew Teik (Tan Yew Hock’s brother)

Cousin of Tan Gaik Hoon, who is a substantial shareholder of Platinum

Alphabet and spouse of Gan Choon Leng.

January 29, 2021 16

MR D.I.Y. Group (M)

The listed regional peers

Based on Frost & Sullivan’s industry report, MDGM’s regional peers within the

ASEAN region comprises of Ace Hardware, Home Product Centre PLC, Siam Global

House PLC, Wilcon Depot and AllHome Corp. The information below is derived

from publicly available sources such as financial statements, annual reports

and/or the respective companies’ websites.

Ace Hardware (ACES IJ, CP: IDR1,630, TP: IDR1,950, BUY)

Listed on the Indonesian Stock Exchange, ACE offers a wide range of products in

the home improvement and lifestyle retail industry segment and has the largest

hardware store network in Indonesia. Through its subsidiary, Toy Games

Indonesia, ACE also operates the Toys Kingdom chain across the country.

Home Product Centre PCL (HMPRO TB, CP: THB13.60, TP: THB15.70, BUY)

Home Pro is Thailand's leading home improvement retailer and it is listed on the

Thailand Stock Exchange. The group operates under two store formats, namely

HomePro and MegaHome stores. HomePro stores are mainly catered towards the

home improvement retail business whereas MegaHome specializes in wholesale

construction & hardware business. The group has stores in Thailand and Malaysia.

Siam Global House PCL (GLOBAL TB, CP: THB20.20, Not Rated)

Siam Global House (SGH) was formed in 2007 and is listed on the Thailand Stock

Exchange. It primarily offers products within the construction and home

improvement retail segment (i.e. building materials and home decorative items).

The bulk of its stores are located in Thailand and it has one store in Cambodia.

Wilcon Depot (WLCON PM, CP: PHP17.96, TP: PHP17.40, HOLD)

Wilcon is Philippines’ largest home improvement retailer. It was founded in 1977

and has since opened more than 60 stores nationwide. Wilcon is one of two home

improvement retailers that are listed on the Philippines Stock Exchange.

AllHome Corp (HOME PM, CP: PHP8.70, TP: PHP10.20, BUY)

AllHome is the fourth largest home improvement retailer in the Philippines in

terms of revenue. It offers a variety of furniture & furnishing appliances,

household, hardware and building material products at its outlets.

Fig 23: A comparison of regional peer store count, product categories and geographical exposure

Company Stores* Geographic exposure Key product categories

MR D.I.Y. Group (M) 688 Malaysia, Brunei Household, Furnishing, Hardware,Electrical

Ace Hardware 263 Indonesia Hardware, Electrical

Home Product Centre PLC 115 Thailand, Malaysia Hardware, Electrical, Furnishing

Siam Global House PLC 72 Thailand, Cambodia Hardware, Furnishing

Wilcon Depot 64 Philippines Hardware, Electrical, Furnishing

AllHome Corp 47 Philippines Hardware, Furnishing, Household

*Number of stores as at end-3QCY20 Source: Company websites

Fig 24: A comparison of historical regional peer financials

Company FYE Revenue (MYRm) Net profit (MYRm) Net gearing (x) ROAE (%)

2019 2018 2019 2018 2019 2019

MR D.I.Y. Group (M) Dec 2275.6 1771.1 325.6 308.3 1.4 73.4

Ace Hardware Dec 2,280.0 2,027.1 290.3 273.4 net cash 23.1

Home Product Centre PLC Dec 9,102.2 8,916.7 833.8 757.7 0.5 30.1

Siam Global House PLC Dec 3,791.0 3,429.3 285.4 268.7 0.9 13.6

Wilcon Depot Dec 2,080.5 1,788.5 180.6 156.0 net cash 15.2

Source: Respective companies’ financial statements Exchange rates used: 1MYR: IDR3571,1MYR:THB7.41, 1MYR:PHP11.76

January 29, 2021 17

MR D.I.Y. Group (M)

A review of 3Q20 results

Fig 25: 3Q20 results summary

FYE: Dec (MYRm) 3Q20 3Q19 %YoY 9M20 9M19 % YoY

Revenue 740.2 561.7 31.8% 1,791.0 1,658.5 8.0%

COGS (426.1) (334.5) 27.4% (1,028.8) (967.9) 6.3%

Gross profit 314.2 227.2 38.3% 762.2 690.6 10.4%

Other operating income 7.5 2.8 >100.0% 15.7 6.1 >100.0%

Administrative expenses (21.9) (10.1) >100.0% (62.4) (48.4) 28.9%

Other operating expenses (127.8) (103.6) 23.4% (348.9) (292.7) 19.2%

EBITDA 215.7 152.0 41.9% 490.6 455.8 7.6%

Depreciation & amortisation (43.7) (35.7) 22.3% (124.0) (100.2) 23.7%

EBIT 172.0 116.3 47.9% 366.6 355.6 3.1%

Interest expense (16.7) (19.4) (14.3%) (52.7) (46.3) 13.7%

Associates & JV 0.1 0.6 (77.8%) 1.3 1.4 (8.7%)

Pretax profit 155.5 97.5 59.4% 315.2 310.6 1.5%

Tax (42.0) (23.9) 75.9% (86.3) (84.0) 2.8%

Net profit 113.5 73.6 54.1% 228.9 226.7 1.0%

Exceptional items - - n.m. - - n.m.

Core net profit 113.5 73.6 54.1% 329.6 308.3 7%

+/- +/-

p.pts YoY p.pts YoY

Gross profit margin (%) 42.4 40.4 2.0 42.6 41.6 0.9

EBITDA margin (%) 29.1 27.1 2.1 27.4 27.5 (0.1)

EBIT margin (%) 23.2 20.7 2.5 20.5 21.4 (1.0)

Tax rate (%) 27.0 24.5 2.0 27.4 27.0 (0.3)

Source: Company

MDGM’s 3Q20 revenue grew 32% YoY predominantly due to (i) increased store

footfall given eased lockdown measures during the quarter which led to strong

consumer spending and higher customer transactions in stores, and (ii) higher

sales contributions from new store openings. MDGM opened +48 new stores in

3Q20 which brings its total store count to 688 stores (“MR. D.I.Y.”: 656, “MR.

TOY”: 28, “MR. DOLLAR”: 4) The group’s gross profit margin also lifted 2 ppts

YoY on better product mix.

As such, 3Q20’s pre-tax profit increased 59% YoY. MDGM’s other operating

income was 2.7x higher in 3Q20 aided by MYR4.6m in rental rebates (from store

closures during the movement control order [MCO] period) while administrative

expenses and other operating expenses grew 2x and 23% YoY respectively mainly

due to higher staff costs from its store expansion.

MDGM’s 3Q20 tax rate was also higher at 27% (+2 ppts YoY) due to the portion of

non-tax deductible items, arising from its borrowings in FY19.

Minimal operational impact from MCO 2.0

On 13 Jan 21, rising cases of COVID-19 forced the Government to announce MCO

2.0 with tighter social distancing measures covering 6 states within Peninsula

Malaysia (Kuala Lumpur, Selangor, Johor, Penang, Melaka and Sabah). MCO 2.0

was later extended to all Malaysian states (except Sarawak) on 19 Jan (to 4 Feb

21). Although MCO 2.0 is still in force currently, we take comfort that its

restrictions are not as rigid as compared to MCO 1.0. Most importantly, more

services are allowed to operate during this time including all of MDGM’s stores.

January 29, 2021 18

MR D.I.Y. Group (M)

Looking forward

Fig 26: Profit & loss summary

FYE: Dec (MYRm) FY16 FY17 FY18 FY19 FY20E FY21E FY22E

Revenue 827.5 1,229.2 1,771.1 2,275.6 2,471.8 3,255.9 3,793.4

COGS (453.5) (687.2) (997.2) (1,311.9) (1,419.4) (1,867.8) (2,190.0)

Gross profit 374.0 542.0 773.8 963.7 1,052.4 1,388.1 1,603.4

Operating expenses (26.4) (34.6) (54.9) (60.2) (72.3) (90.5) (107.2)

Other operating expenses (137.1) (207.2) (291.6) (402.9) (465.7) (581.2) (677.1)

EBITDA 259.6 372.6 531.8 639.4 672.3 885.2 994.6

Depreciation & amortisation (49.2) (72.4) (104.4) (138.8) (157.9) (168.8) (175.5)

EBIT 210.5 300.2 427.4 500.6 514.4 716.3 819.1

Net interest expense (14.1) (19.9) (28.6) (61.5) (68.9) (46.1) (42.4) Associates & JV - 0.7 1.2 1.7 1.7 1.7 1.7

Pretax profit 195.5 279.9 398.5 437.7 447.2 672.0 778.3

Tax (48.8) (69.9) (90.1) (120.2) (116.3) (161.5) (187.2)

Net profit 146.7 210.0 308.3 317.6 330.9 510.4 591.2

Exceptional items - - - (12.0) - - -

Core net profit 146.7 210.0 308.3 329.6 330.9 510.4 591.2


3-year forward revenue CAGR of 19%

We derive a 3-year (FY19-FY22E) revenue CAGR of 19% primarily from MDGM’s

Malaysia segment where the bulk of its stores are located. Key assumptions

include the following:

100 net new MR DIY stores p.a. from FY20-FY22E. With 579 stores

under its belt as at end-2019 (9M20: +77 stores), we expect MDGM to

open at least another 100 stores p.a.. We have imputed all of its new

stores to be opened in Malaysia while keeping its store count in Brunei

stable as MDGM leverages on its domestic stronghold. This translates to

13%-17% new MR DIY store growth for MDGM as a whole from FY20-FY22.

Growing store count for MDGM’s other retail concept stores. As at

end-2019, MDGM had 14 MR TOY existing stores with a target to open 22

additional stores in FY20. “MR. DOLLAR”, the group’s newest retail

concept store, opened its maiden store in Aug 20 and is expected to

grow its store network by 50 stores in FY20. We have assumed for

22/25/25 new MR TOY stores and 50/50/50 new “MR. DOLLAR” stores

for FY20/FY21/FY22.

Blended SSSG to trend higher. As at end-2019, MDGM reported an

overall SSSG growth of +1.8% for its Malaysia and Brunei stores,

reflecting slower growth against its FY18 SSSG of +4.5%. This was due to

significantly weaker retail sales in 4Q19 in tandem with an overall

weaker Malaysian 4Q19 GDP growth of 3.6%. For FY20, the global

pandemic resulted in a nationwide lockdown in Malaysia from 18 Mar to

4 May (MCO 1.0) where MDGM’s stores were deemed non-essential

services and were not allowed to operate. This led to a drop in MDGM’s

1H20 SSSG to -24.6%. Positively, when MDGM’s store operations resumed

in May 20, the group experienced pent up consumer demand which led

to a sales rebound in the month of May and Jun 20 (Fig 29) thereby

resulting in strong SSSG in 3Q20 of +10.8%. Although consumer sentiment

remains weak, we believe that MR DIY stores are well positioned to

benefit from consumer downtrading given its competitively priced

products which cater to mass market consumers. Hence, we ascribe -

5%/+13%/+2% SSSG from FY20-FY22E to account for its fast pace

recovery in business activity in 2H20. Our model pencilled in an average

revenue/store p.a. of <MYR1m for MYR TOY and c.MYR1m for MR TOY.

January 29, 2021 19

MR D.I.Y. Group (M)

Fig 27: Total blended store count and openings Fig 28: Total store count by retail concept

Country FY16 FY17 FY18 FY19 FY20E FY21E FY22E

MR. D.I.Y. 65 354 467 579 679 779 879

MR. TOY n.a. n.a. n.a. 14 36 61 86

MR. DOLLAR n.a. n.a. n.a. n.a. 10 60 110

Total stores 244 354 467 593 725 900 1,075

Source: Company, Maybank KE Source: Company, Maybank KE

Fig 29: Strong average sales recovery post MCO 1.0 Fig 30: SSSG rebound post MCO 1.0


Fig 31: SSSG growth (%)

FY16 FY17 FY18 FY19E FY20E FY21E FY22E

SSSG (%) 0.9% 6.5% 4.5% 1.8% -5.0% 13.0% 2.0%


Fig 32: Store opening sensitivity analysis to FY21 earnings

FY21

Base case 100

Additional net store opening (+/-) 10

MYRm earnings impact (+/-) MYR7m

% earnings impact (+/-) 1%

Source: Maybank KE

Administrative expenses

MDGM’s administrative expenses mostly comprised of employee benefits,

advertising and rental expenses. Employee benefits incurred relate to its

corporate headquarters. In accordance with MFRS 16, rental expenses incurred

relate to short term leases which are less than twelve months or those of low

value assets (eg. advertising space and land). We estimate that administrative

expenses will amount to a stable c.3% of revenue in FY20-FY22E, similar to its

historical average.

244 354 467 593 725 900 1,075

65

110 113 126 132

175 175

0

20

40

60

80

100

120

140

160

180

200

0

200

400

600

800

1,000

1,200

FY16 FY17 FY18 FY19 FY20E FY21E FY22E

Total stores New store openings

190 208

85

233 247

0

50

100

150

200

250

300

2019 Jan-Feb 20 Mar-Apr 20 May-Jun 20 3Q20

0.9%

6.5% 4.5%

1.8%

-24.6%

10.8%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

FY16 FY17 FY18 FY19 1H20 3Q20

Avg mthly revenue (MYRm)

January 29, 2021 20

MR D.I.Y. Group (M)

Other operating expenses

Other operating expenses represented 18% of revenue in FY19 where the majority

of this came from employee benefits (in relation to employees from its

distribution centre, warehousing facilities and stores) and utilities expense

incurred at MDGM’s stores and warehouse facilities. In FY19, employee benefits

and utilities expenses accounted for 49% and 9% respectively of total other

operating expenses while other expenses, which include transport, upkeep and

maintenance, levy charges, rental and depreciation and amortisation costs made

up the remaining 42%.

For employee benefit costs, we estimate a 19%-34% growth in FY20-FY22 in

tandem with MDGM’s store openings targets and the recent rise in minimum wage

to MYR1,200 per month (from MYR1,100 per month previously) for major cities

within Malaysia, effective 1 Feb 2020. As at 1H20, 47% of MDGM’s staff force is

compensated at minimum wage of which c.15% are foreign workers. Meanwhile,

we estimate FY20 growth in utility costs at a lower 2%, which accounts for the

store closures during MCO 1.0 but impute a 17%-41% increase in utility costs for

FY21-FY22 led by its new store opening targets and warehouse facility expansion.

Fig 33: Breakdown of FY19 other operating expenses

Source: Company

Fig 34: Other operating expenses (MYRm)


Employee benefits 66.9 104.9 140.6 199.0 237.1 318.4 393.2

Utilities expenses 11.9 17.3 26.5 36.4 37.3 52.6 61.3

Other expenses 58.3 85.0 124.5 167.4 191.4 210.6 224.1

Total other operating expenses* 137.1 207.2 291.6 402.9 465.7 581.5 678.5

Growth (%)

51% 41% 38% 16% 25% 17%

As a % of revenue -17% -17% -16% -18% -19% -18% -18%

Per store average 0.6 0.7 0.7 0.8 0.7 0.8 0.8

*Other expenses include transport, upkeep & maintenance, levy charges, rental and depreciation & amortization costs.


Expecting effective tax to normalise

MDGM reported an average 25% effective tax rate from FY16-FY19 but we expect

a higher effective tax rate in FY20 of 26% given the presence of higher non-tax

deductible items from IPO expenses and a portion of interest expense. That said,

our effective tax rate projections for FY21 and FY22 are reduced to 24% p.a. as

we expect MDGM to substantially pare down its debt in FY20.

Employee benefits

49%

Utilities 9%

Other expenses

42%

January 29, 2021 21

MR D.I.Y. Group (M)

3-year net profit CAGR of 22%

Taking into account the assumptions that we have illustrated in regards to

topline growth, we project a 3-year net profit (FY19-FY22E) CAGR of 22% for

MDGM with expectations for FY20/FY21/FY22 net profit growth to increase by

and an estimated 0%/54%/16%.

Fig 35: Gross profit, EBITDA, EBIT, pretax profit and net profit forecasts


Gross profit 374.0 542.0 773.8 963.7 1,052.4 1,388.1 1,603.4

Gross profit margin 45% 44% 44% 42.3% 42.6% 42.6% 42.3%

Other operating income 1.799 2.471 3.819 10.261 10.261 10.261 10.261

Administrative expenses (28.2) (37.1) (58.7) (70.5) (82.6) (100.8) (117.4)

Other expenses (137.1) (207.2) (291.6) (402.9) (465.7) (581.2) (677.1)

EBITDA 259.6 372.6 531.8 639.4 672.3 885.2 994.6

EBITDA margin 31% 30% 30% 28.1% 27.2% 27.2% 26.2%

Depreciation & amortisation (49.2) (72.4) (104.4) (138.8) (157.9) (168.8) (175.5)

EBIT 210.5 300.2 427.4 500.6 514.4 716.3 819.1

EBIT margin 25% 24% 24% 22.0% 20.8% 22.0% 21.6%

Interest income/(expenses) (14.1) (19.9) (28.6) (61.5) (68.9) (46.1) (42.4)

Pretax profit 195.5 279.9 398.5 437.7 447.2 672.0 778.3

Pretax profit margin 24% 23% 22% 19.2% 18.1% 20.6% 20.5%

Tax (48.8) (69.9) (90.1) (120.2) (116.3) (161.5) (187.2)

Tax rate -25% -25% -23% -27.5% -26.0% -24.0% -24.0%

Net profit 146.7 210.0 308.3 317.6 330.9 510.4 591.2

Net profit margin 18% 17% 17% 14.0% 13.4% 15.7% 15.6%

Core net profit 146.7 210.0 308.3 329.6 330.9 510.4 591.2

13.4% 15.7% 15.6%

Growth rates

Gross profit

45% 43% 25% 9% 32% 16%

EBITDA

43% 43% 20% 5% 32% 12%

EBIT

43% 42% 17% 3% 39% 14%

Pretax profit

43% 42% 10% 2% 50% 16%

Net profit

43% 47% 3% 4% 54% 16%

Core net profit

43% 47% 7% 0% 54% 16%


Turning net cash in FY21

As at end-2019, MDGM’s cash balance stood at MYR141m with total gross short

term debt of MYR12m and total long-term debt of MYR612m which resulted in a

net debt position of MYR483m. The bulk of its long-term debt comprises of a

MYR422m term loan and MYR187m in revolving credits. To note that MDGM took

out a MYR400m term loan and MYR200m revolving credit facililty in Mar and Apr

2019 for the purpose of financing capex, working capital and general corporate

purposes which included the distribution of dividends of MYR500m in FY19 and

the acquisition of Mr. D.I.Y. (B) Sdn Bhd. As such, MDGM’s net gearing increased

to 1.4x in FY19 versus 0.04x in FY18. With the listing proceeds, capex plans and

MDGM’s intention to pare down debt, we expect the group to return to a slight

net cash position from FY21 onwards.

January 29, 2021 22

MR D.I.Y. Group (M)

Fig 36: Expecting net cash position in FY21E


Capex expenditure requirements

We have assumed for new store opening costs for “MR. D.I.Y.” to be

c.MYR620k/store while the cost of opening a new store for “MR. TOY” and “MR.

DOLLAR” is estimates to be c.MYR650k/store and MYR550k/store (excluding

inventory) respectively. On that basis, we estimate total store capex to amount

to MYR111m p.a. in FY20-FY22E based on our assumptions for 100 new “MR.

D.I.Y.” stores p.a., 22-25 new “MR. TOY” stores p.a. and 50 “MR. DOLLAR” stores

p.a.. Note that we also imputed for MDGM to acquire a piece of land and

warehouse facility for c.MYR30m in FY20. After accounting for the above, we

estimate FY20/FY21/FY22 capex to be MYR134m/MYR111m/MYR111m.

Fig 37: Capex planned for FY20-FY22E


(500.0)

(400.0)

(300.0)

(200.0)

(100.0)

-

100.0

200.0

300.0


(MYRm)

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0


Net capex Free cash flow

January 29, 2021 23

MR D.I.Y. Group (M)

Fig 38: Balance sheet summary

FYE: DEC (MYRm) FY16 FY17 FY18 FY19 FY20E FY21E FY22E

Inventories 161.1 256.2 419.3 496.6 537.4 690.8 810.0

Receivables 38.1 56.4 81.2 121.8 132.3 160.6 187.1

Cash/ST investments 36.0 89.4 66.7 140.7 206.7 329.0 514.6

Other current assets 0.1 0.1 - - - - -

Total current assets 235.4 402.1 567.1 759.1 876.3 1,180.4 1,511.6

- - - - - - -

PPE 105.6 166.2 269.4 354.0 442.1 496.0 542.9

Right-of-use assets 272.4 385.4 528.8 690.5 690.5 690.5 690.5

Intangible assets 1.3 1.7 2.4 3.7 2.3 1.4 0.9

Other non-current assets 5.4 10.1 15.9 16.6 18.0 19.4 20.8

Total non-current assets 384.8 563.5 816.5 1,064.9 1,152.9 1,207.3 1,255.0

- - - - - - -

Total assets 620.2 965.6 1,383.6 1,824.0 2,029.2 2,387.7 2,766.7

ST borrowings (1.5) (2.2) (44.3) (11.8) (11.8) (11.8) (11.8)

Payables (140.9) (147.6) (173.4) (81.8) (88.5) (140.7) (165.0)

Lease liabilities (42.3) (61.0) (72.2) (94.2) (94.2) (94.2) (94.2)

Other current liabilities (22.3) (25.2) (27.1) (34.9) (34.9) (34.9) (34.9)

Total current liabilities (207.0) (236.0) (317.0) (222.7) (229.4) (281.6) (305.9)

- - - - - - -

LT borrowings (24.6) (28.9) (47.7) (611.5) (311.5) (311.5) (311.5)

Lease liabilities (238.7) (339.3) (479.1) (632.7) (632.7) (632.7) (632.7)

Other non-current liabilities (10.7) (12.2) (15.2) (16.6) (16.6) (16.6) (16.6)

Total non-current liabilities (274.0) (380.3) (542.1) (1,260.8) (960.8) (960.8) (960.8)

- - - - - - -

Total liabilities (481.0) (616.4) (859.1) (1,483.5) (1,190.2) (1,242.4) (1,266.7)

Share capital 0.0 2.0 2.0 2.0 302.0 302.0 302.0

Reserves 137.2 347.3 522.6 338.5 537.1 843.3 1,198.0

Others 2.0 - - - - - -

Shareholder's equity 139.2 349.2 524.6 340.5 839.0 1,145.3 1,500.0


Fig 39: Cash flow summary

FYE: DEC (MYRm) FY16 FY17 FY18 FY19 FY20E FY21E FY22E

Net cash from operating activities 100.2 204.1 266.0 403.3 511.5 594.1 686.0

Net capex (37.8) (69.6) (123.7) (114.6) (134.1) (111.4) (111.4)

Others 1.2 (15.8) (1.6) (103.3) 4.5 6.5 10.2

Net cash from investment activities (36.6) (85.4) (125.3) (217.9) (129.6) (104.9) (101.2)

Dividends (31.4) - (133.0) (501.7) (132.4) (204.2) (236.5)

Proceeds from debt - - 55.6 600.0 - - -

Repayment of debt (1.0) (1.5) (10.6) (60.0) - - -

Change in debt (1.0) (1.5) 45.0 540.0 (300.0) - -

Change in equity 2.0 - - - 300.0 - -

Payment of lease liabilities (28.6) (42.3) (61.2) (78.4) (110.5) (110.5) (110.5)

Others (14.5) (19.9) (75.0) (610.8) (73.1) (52.3) (52.3)

Net cash from financing activities (74.5) (65.2) (179.3) (110.9) (316.0) (366.9) (399.2)

Net increase/(decrease) in cash (10.9) 53.5 (38.5) 74.6 66.0 122.3 185.6

Free cash flow 62.4 134.5 142.3 288.7 377.4 482.8 574.6


Imputing a dividend payout ratio of 40%

MDGM is targeting a dividend payout policy of at least 40% of net profit. Hence,

our forecast has also assumed a payout ratio of 40%. We estimate dividend per

share (DPS) of 2.1sen/3.3sen/3.8sen for FY20/FY21/FY22 which implies dividend

yields of c.1% p.a. MDGM paid out MYR502m in dividends in FY19.

January 29, 2021 24

MR D.I.Y. Group (M)

Valuations

Favouring a PER methodology

We believe that MDGM is well positioned for robust 3-year (FY19-FY22) net profit

CAGR of 22% as it sits within a relatively underpenetrated home retail industry

supported by consistent store network expansion and sustainable contributions

from its matured stores. With MDGM’s long-term growth potential, we favour a

PER valuation methodology to value the stock.

Target price of MYR3.05

We peg MDGM’s earnings to 37x FY21 PER to derive our target price of MYR3.05.

Our target PER multiple implies a 20% premium to its FY21 regional peer market

weighted average of 31x, which consists of 5 listed home improvement retailers

within the ASEAN region. Note that Home Product Center, ACE hardware, Wilcon

Depot and AllHome Corp are based on MKE forecasts.

MDGM’s 3-year (FY19-FY22E) net profit CAGR of 22% is expected to significantly

outpace its ASEAN regional peer average net profit CAGR of only 9% given its

domestic mass market appeal through its low price-point items, coupled with

expectations of consumer-downtrading amid the global pandemic. MDGM’s PEG

of 1.7x at the current share price of MYR2.98, also compares favourably relative

to its peer average of 7.1x. That said, we believe MDGM’s superior earnings CAGR

prospects have already been priced in, as reflected in its 20% valuation premium

against its regional peers. Hence, we initiate HOLD on MDGM with a 3% upside.

Separately, with the 86% increase in MDGM’s share price since its listing on 26

Oct 20 (IPO listing price: MYR1.60), its market cap has grown to MYR18.7b,

making it the 26th largest stock on the Malaysian exchange (Fig 41). MDGM’s

potential inclusion as a FTSE Bursa Malaysia KLCI (FBM KLCI) constituent in its

next semi-annual review in Jun 2021 will depend on the rise of its market cap

ranking to No. 25 or above based on the market closing price on the third Friday

in Jun 2021 (i.e. 18 Jun).

Fig 40: Regional home improvement retail peer comparison

Stock Rec Shr px* Mkt cap TP PER PER PBV PBV 3-yr 3-yr Net

Yield ROE ROE

(x) (x) (x) (x) CAGR PEG (%) (%) (%)

(LCY) (USD m) (LCY) CY20E CY21E CY20E CY21E (%) (x) CY21E CY21E CY21E

Home Product Center^ Buy 14.10 6,119 15.70 39.5 30.4 8.9 8.0 2.7% 12.7 2.7% 22.4% 26.3%

Siam Global House NR 20.30 2,949 NR 42.5 35.3 5.1 4.7 11.8% 3.5 1.2% 12.5% 13.1%

ACE Hardware^ Buy 1,595.00 1,942 1,950.00 31.2 24.4 5.4 4.7 6.0% 4.5 1.7% 17.2% 19.4%

Wilcon Depot^ Hold 18.00 1,550 17.40 48.5 35.4 4.7 4.3 6.0% 8.2 0.5% 9.7% 12.0%

AllHome Corp^ Buy 8.70 685 10.20 34.4 24.3 2.5 2.3 5.9% 6.4 0.6% 7.2% 9.3%

Simple avg 39.2 30.0 5.3 4.8 6.5% 7.1 1.3% 13.8% 16.0%

Mkt cap weighted avg 39.7 30.9 6.7 6.1 5.8% 8.6 1.9% 17.2% 19.8%

*As at 27 Jan 2021 closing prices Source: Bloomberg, Maybank KE

^ Ace Hardware, Home Product Centre PCL, Wilcon Depot and AllHome Corp are based on Maybank KE’s estimates

January 29, 2021 25

MR D.I.Y. Group (M)

Fig 41: Top 40 stocks by market capitalisation

Bloomberg code Stock name Market cap (MYRb) @ 27 Jan

Shr px (MYR) @ 27 Jan

1 MAY MK Equity MALAYAN BANKING BHD 89.83 7.87

2 PBK MK Equity PUBLIC BANK BERHAD 84.63 4.36

3 TNB MK Equity TENAGA NASIONAL BHD 55.79 9.78

4 PCHEM MK Equity PETRONAS CHEMICALS GROUP BHD 54.80 6.85

5 TOPG MK Equity TOP GLOVE CORP BHD 49.83 6.21

6 IHH MK Equity IHH HEALTHCARE BHD 46.08 5.25

7 HART MK Equity HARTALEGA HOLDINGS BHD 41.82 12.2

8 CIMB MK Equity CIMB GROUP HOLDINGS BHD 39.10 3.94

9 MAXIS MK Equity MAXIS BHD 38.25 4.89

10 HLBK MK Equity HONG LEONG BANK BERHAD 37.94 17.5

11 SDPL MK Equity SIME DARBY PLANTATION BHD 33.67 4.89

12 PMAH MK Equity PRESS METAL ALUMINIUM HOLDIN 32.67 8.09

13 NESZ MK Equity NESTLE (MALAYSIA) BERHAD 32.48 138.5

14 PTG MK Equity PETRONAS GAS BHD 31.94 16.14

15 DIGI MK Equity DIGI.COM BHD 30.71 3.95

16 AXIATA MK Equity AXIATA GROUP BERHAD 30.63 3.34

17 MISC MK Equity MISC BHD 28.08 6.29

18 IOI MK Equity IOI CORP BHD 27.26 4.35

19 PEP MK Equity PPB GROUP BERHAD 26.69 18.76

20 KLK MK Equity KUALA LUMPUR KEPONG BHD 24.91 23.1

21 T MK Equity TELEKOM MALAYSIA BHD 24.53 6.5

22 RHBBANK MK Equity RHB BANK BHD 20.65 5.15

23 HAP MK Equity HAP SENG CONSOLIDATED 19.82 7.96

24 PETD MK Equity PETRONAS DAGANGAN BHD 19.47 19.6

25 HLFG MK Equity HONG LEONG FINANCIAL GROUP 19.31 16.86

26 MRDIY MK Equity MR DIY GROUP M BHD 18.70 2.98

27 DLG MK Equity DIALOG GROUP BHD 17.66 3.13

28 SUCB MK Equity SUPERMAX CORP BHD 17.17 6.56

29 GENT MK Equity GENTING BHD 15.48 4.02

30 SIME MK Equity SIME DARBY BERHAD 15.31 2.25

31 WPRTS MK Equity WESTPORTS HOLDINGS BHD 14.66 4.3

32 QLG MK Equity QL RESOURCES BHD 14.65 6.02

33 GENM MK Equity GENTING MALAYSIA BHD 13.85 2.45

34 KLCCSS MK Equity KLCCP STAPLED GROUP 12.69 7.03

35 INRI MK Equity INARI AMERTRON BHD 11.44 3.46

36 FNH MK Equity FRASER & NEAVE HOLDINGS BHD 11.22 30.6

37 KRI MK Equity KOSSAN RUBBER INDUSTRIES 10.88 4.26

38 AMM MK Equity AMMB HOLDINGS BHD 9.66 3.21

39 GENP MK Equity GENTING PLANTATIONS BHD 8.81 9.82

40 GAM MK Equity GAMUDA BHD 8.50 3.38

Source: Bloomberg

January 29, 2021 26

MR D.I.Y. Group (M)

Key risk factors

Key risk factors for MDGM include, but are not restricted to, those stated below.

Major licences, permits & approvals

As at end-Oct 2019, about a quarter of MDGM’s stores and certain of its

warehousing and storage units in Malaysia do not have a business licence and/or

signboard licence. This is due to delays in either licence renewal or the

application of new licences. Each of the affected store accounted for 0.2% on

average of the group’s revenue for FY18.

Its warehouses have not been issued with fire certificates, which the Board

endeavours to obtain by December 2022. As for one of its warehouses, the issue

surrounding its non-compliant roof structure will have to be resolved before the

licences and fire certificate can be obtained.

Vulnerable to infringement claims by third parties

Given that MDGM carries its own white-label products, this opens up the company

to the risk that third parties may claim that its sale of a certain product breaches

the third party’s intellectual property rights. Since MDGM does not have written

contracts with its end suppliers for such products, it may not have contractual

recourse to its end suppliers for such claims.

Vulnerable to disruption in supply chain

MDGM sources a sizeable amount of its products from foreign end suppliers,

particularly in China, which accounts for more than 70% of its imports. MDGM is,

as such, vulnerable to major changes in tax or trade policies or tariffs in China

which may adversely impact its business.

Exchange rate fluctuations

While MDGM makes all payments for its imports in MYR, it is exposed to foreign

exchange rate fluctuations, particularly against the RMB and USD. The company

has yet to enter into any hedging transactions to reduce its exposure to foreign

currency exchange risk.

Labour issues

MDGM is dependent, to some extent, on foreign nationals, which accounted for

15% of its full-time employees at 1H20. Any changes in Malaysia’s policies

towards foreign nationals could affect the company’s labour needs. Moreover,

MDGM is also exposed to upward revisions in minimum wage laws.

January 29, 2021 27

MR D.I.Y. Group (M)

FYE 31 Dec FY18A FY19A FY20E FY21E FY22E

Key Metrics

P/E (reported) (x) na na 56.5 36.6 31.6

Core P/E (x) na na 56.5 36.6 31.6

P/BV (x) na na 22.3 16.3 12.5

P/NTA (x) na na 42.3 37.7 34.5

Net dividend yield (%) na na 0.7 1.1 1.3

FCF yield (%) na na 2.0 2.6 3.1

EV/EBITDA (x) 36.2 31.1 29.0 21.9 19.3

EV/EBIT (x) 45.1 39.7 37.9 27.1 23.4

INCOME STATEMENT (MYR m)

Revenue 1,771.1 2,275.6 2,471.8 3,255.9 3,793.4

Gross profit 773.8 963.7 1,052.4 1,388.1 1,603.4

EBITDA 531.8 639.4 672.3 885.2 994.6

Depreciation (103.8) (137.9) (156.5) (167.9) (175.0)

Amortisation (0.6) (0.9) (1.4) (0.9) (0.5)

EBIT 427.4 500.6 514.4 716.3 819.1

Net interest income /(exp) (30.1) (64.6) (68.9) (46.1) (42.4)

Associates & JV 1.2 1.7 1.7 1.7 1.7

Exceptionals 0.0 (12.0) 0.0 0.0 0.0

Other pretax income 0.0 0.0 0.0 0.0 0.0

Pretax profit 398.5 437.7 447.2 672.0 778.3

Income tax (90.1) (120.2) (116.3) (161.5) (187.2)

Minorities 0.0 0.0 0.0 0.0 0.0

Discontinued operations 0.0 0.0 0.0 0.0 0.0

Reported net profit 308.3 317.6 330.9 510.4 591.2

Core net profit 308.3 329.6 330.9 510.4 591.2

BALANCE SHEET (MYR m)

Cash & Short Term Investments 66.7 140.7 206.7 329.0 514.6

Accounts receivable 81.2 121.8 132.3 160.6 187.1

Inventory 419.3 496.6 537.4 690.8 810.0

Property, Plant & Equip (net) 269.4 354.0 442.1 496.0 542.9

Intangible assets 2.4 3.7 2.3 1.4 0.9

Investment in Associates & JVs 3.4 4.8 6.2 7.6 9.0

Other assets 541.3 702.3 702.3 702.3 702.3

Total assets 1,383.6 1,824.0 2,029.2 2,387.7 2,766.7

ST interest bearing debt 44.3 11.8 11.8 11.8 11.8

Accounts payable 173.4 81.8 88.5 140.7 165.0

LT interest bearing debt 47.7 611.5 311.5 311.5 311.5

Other liabilities 594.0 778.0 778.0 778.0 778.0

Total Liabilities 859.1 1,483.5 1,190.2 1,242.4 1,266.7

Shareholders Equity 524.6 340.5 839.0 1,145.3 1,500.0

Minority Interest 0.0 0.0 0.0 0.0 0.0

Total shareholder equity 524.6 340.5 839.0 1,145.3 1,500.0

Total liabilities and equity 1,383.6 1,824.0 2,029.2 2,387.7 2,766.7

CASH FLOW (MYR m)

Pretax profit 398.5 437.7 447.2 672.0 778.3

Depreciation & amortisation 104.4 138.8 157.9 168.8 175.5

Adj net interest (income)/exp 0.0 0.0 0.0 0.0 0.0

Change in working capital (189.3) (151.7) (44.5) (129.5) (121.4)

Cash taxes paid (93.7) (111.2) (116.3) (161.5) (187.2)

Other operating cash flow 17.3 26.8 0.0 0.0 0.0

Cash flow from operations 266.0 403.3 511.5 594.1 686.0

Capex (123.7) (114.6) (134.1) (111.4) (111.4)

Free cash flow 142.3 288.7 377.4 482.8 574.6

Dividends paid (133.0) (501.7) (132.4) (204.2) (236.5)

Equity raised / (purchased) 0.0 0.0 300.0 0.0 0.0

Change in Debt 45.0 540.0 (300.0) 0.0 0.0

Other invest/financing cash flow (92.8) (252.5) (179.1) (156.3) (152.6)

Effect of exch rate changes (0.0) (0.1) 0.0 0.0 0.0

Net cash flow (38.5) 74.5 66.0 122.3 185.6

January 29, 2021 28

MR D.I.Y. Group (M)

FYE 31 Dec FY18A FY19A FY20E FY21E FY22E

Key Ratios

Growth ratios (%)

Revenue growth 44.1 28.5 8.6 31.7 16.5

EBITDA growth 42.7 20.2 5.1 31.7 12.4

EBIT growth 42.4 17.1 2.7 39.3 14.3

Pretax growth 42.4 9.9 2.2 50.3 15.8

Reported net profit growth 46.8 3.0 4.2 54.2 15.8

Core net profit growth 46.8 6.9 0.4 54.2 15.8

Profitability ratios (%)

EBITDA margin 30.0 28.1 27.2 27.2 26.2

EBIT margin 24.1 22.0 20.8 22.0 21.6

Pretax profit margin 22.5 19.2 18.1 20.6 20.5

Payout ratio 43.1 158.0 40.0 40.0 40.0

DuPont analysis

Net profit margin (%) 17.4 14.0 13.4 15.7 15.6

Revenue/Assets (x) 1.3 1.2 1.2 1.4 1.4

Assets/Equity (x) 2.6 5.4 2.4 2.1 1.8

ROAE (%) na na na na na

ROAA (%) 26.3 20.5 17.2 23.1 22.9

Liquidity & Efficiency

Cash conversion cycle 78.0 106.7 128.0 112.5 114.7

Days receivable outstanding 14.0 16.1 18.5 16.2 16.5

Days inventory outstanding 121.9 125.7 131.1 118.4 123.4

Days payables outstanding 57.9 35.0 21.6 22.1 25.1

Dividend cover (x) 2.3 0.6 2.5 2.5 2.5

Current ratio (x) 1.8 3.4 3.8 4.2 4.9

Leverage & Expense Analysis

Asset/Liability (x) 1.6 1.2 1.7 1.9 2.2

Net gearing (%) (incl perps) 4.8 141.8 13.9 net cash net cash

Net gearing (%) (excl. perps) 4.8 141.8 13.9 net cash net cash

Net interest cover (x) 14.2 7.7 7.5 15.5 19.3

Debt/EBITDA (x) 0.2 1.0 0.5 0.4 0.3

Capex/revenue (%) 7.0 5.0 5.4 3.4 2.9

Net debt/ (net cash) 25.4 482.7 116.7 (5.7) (191.2)

Source: Company; Maybank

January 29, 2021 29

MR D.I.Y. Group (M)

Appendix 1: Corporate Structure

Notes:

(1) The remaining 5.0% equity interest in Mr DIY Management Sdn Bhd (MDIM) is held by Tan Yu Yeh, Tan Yu Wei, Tan Yew

Hock, Tan Lee Lee, Tan Yew King, Tan Yew Teik, Chong Swee Lee and Tan Lee Ling, all of whom had waived all their

present and future rights, title, interest in and to all dividends declared, distributed or paid by MDIM. Consequently, MDIM

is consolidated based on 100% ownership interest.

(2) The remaining 70.0% equity interests in Qube is held by Chai Chee Own, Fong Tuck Heng and Ng Swee Loong.

(3) One ordinary share is held by MDIM on trust for MDGM.

January 29, 2021 30

MR D.I.Y. Group (M)

Appendix 2: Board of Directors

Name Designation Profile

Dato’ Azlam Shah

bin Alias

(age: 59 years)

Independent Non-

Executive

Chairman

Dato’ Azlam has a Bachelor of Business Administration, majoring in finance from Eastern Michigan

University, US. From 1999 to 2001, he was posted to ExxonMobil Asia Pacific Private Limited in

Singapore, as its Regional Real Estate Outsourcing Manager. Prior to that, he held various roles in

Esso Malaysia Bhd in retail development. Dato’ Azlam currently serves as a Senior Adviser to the CEO

of Tesco Stores Malaysia Sdn Bhd and is concurrently the Chairman of Tesco Halal Council.

Tan Yu Yeh

(age: 48 years)

Non-Independent

Executive

Director/

Executive Vice

Chairman

Mr Tan Yu Yeh graduated with a Bachelor of Science in Physics from University of Malaya in 1996.

From 1996 to 1997, he worked as an engineer with Komag USA (M) Sdn Bhd while from 1997 to 2009,

he worked with Inter-Pacific Securities Sdn Bhd as a remisier. Mr Tan is the founder of the MR D.I.Y.

business, having opened the first store in Jalan Tuanku Abdul Rahman in 2005. Today, Mr Tan is

Executive Vice Chairman of the group’s operations.

Tan Yu Wei

(age: 46 years)

Non-Independent

Executive

Director/Executive

Vice President

Mr Tan Yu Wei has a bachelor of Management (Honours) from Universiti Sains Malaysia. From 2000 to

2011, he was part of the management team that set up De Little Chinatown Sdn Bhd, a wholesaler

of products mainly from China, and served as a director. He was appointed the group’s Executive

Vice President on 1 Jan 2019, primarily leading the group’s procurement strategy and overseeing the

expansion of the retail stores, as well as leading the group’s logistics and marketing departments.

Ong Chu Jin

Adrian

(age: 49 years)

Non-Independent

Executive

Director/ Chief

Executive Officer

Ong Chu Jin Adrian Is a member of the Institute of Chartered Accountants in England and Wales and

he holds a Masters in Business Administration from the Judge Business School, University of

Cambridge, UK. He worked with the CIMB group for 20 years from 1995 to 2015, where he held

various senior positions, including senior Managing Director of Investment Banking. In 2015, he

joined Creador as Managing Director and represented the Creador Funds on the board of MDGM from

Oct 2016 to Aug 2018. He was reappointed to the board of MDGM on Feb 2019. He currently holds

the position of Chief Executive Officer and oversees the daily operations of the group.

Brahmal A/L

Vasudevan

(age: 51 years)

Non-Independent

Non-Executive

Director

Brahmal Vasudevan graduated with first class honours from Imperial College of Science, Technology

and Medicine with a Bachelor of Engineering in Aeronautical Engineering. He also holds a Master of

Business Administration from Harvard University Graduate School of Business Administration, US.

Brahmal is the founder of Creador and has been the CEO of Creador since 2011.

Ng Ing Peng

(age: 62 years)

Independent Non-

Executive Director

Ng Ing Peng holds a Bachelor of Accounting from University of Malaya and she is also a member of

the Institute of Chartered Accountants in England and Wales. From 2000 to 2012, she was at CIMB

where her last position was as Head of Group Finance. From 2013-2016, she held various executive

positions at Petra Energy Bhd, including Group Chief Financial Officer, and where she is currently an

Independent Non-Executive Director.

Leng Choo Yin

(age: 48 years)

Independent Non-

Executive Director

Leng Choo Yin has a Bachelor of Arts Degree (Hons) in economics from University of Toronto, Canada.

She is currently the Head, Private Wealth Malaysia, Group Wealth Management, Community Financial

Services, Malaysia, at Malayan Banking/ Prior to joining Maybank in July 2019, she held various

positions at CIMB from 2001 to June 2019.

Source: Company

January 29, 2021 31

MR D.I.Y. Group (M)

Appendix 3: Key Senior Management

Name Designation Profile

Tan Yu Yeh

(age: 48 years)

Non-Independent

Executive

Director/Executive

Vice Chairman

Mr Tan Yu Yeh graduated with a Bachelor of Science in Physics from University of Malaya in 1996.

From 1996 to 1997, he worked as an engineer with Komag USA (M) Sdn Bhd while from 1997 to

2009, he worked with Inter-Pacific Securities Sdn Bhd as a remisier. Mr Tan is the founder of the MR

D.I.Y. business, having opened the first store in Jalan Tuanku Abdul Rahman in 2005. Today, Mr Tan

is Executive Vice Chairman of the group’s operations.

Tan Yu Wei

(age: 46 years)

Non-Independent

Executive

Director/Executive

Vice President

Mr Tan Yu Wei has a bachelor of Management (Honours) from Universiti Sains Malaysia. From 2000

to 2011, he was part of the management team that set up De Little Chinatown Sdn Bhd, a

wholesaler of products mainly from China, and served as a director. He was appointed the group’s

Executive Vice President on 1 Jan 2019, primarily leading the group’s procurement strategy and

overseeing the expansion of the retail stores, as well as leading the group’s logistics and marketing

departments.

Ong Chu Jin

Adrian

(age: 49 years)

Non-Independent

Executive

Director/Chief

Executive Officer

Ong Chu Jin Adrian Is a member of the Institute of Chartered Accountants in England and Wales and

he holds a Masters in Business Administration from the Judge Business School, University of

Cambridge, UK. He worked with the CIMB group for 20 years from 1995 to 2015, where he held

various senior positions, including senior Managing Director of Investment Banking. In 2015, he

joined Creador as Managing Director and represented the Creador Funds on the board of MDGM

from Oct 2016 to Oct 2018. He currently holds the position of Chief Executive Officer and oversees

the daily operations of the group.

Lim Chen Hwee

(age: 39 years)

Senior Vice President,

Finance

Lim Chen Hwee holds a Bachelor of Accountancy from Universiti Putra Malaysia and is a qualified

accountant. Prior to joining MDGM, she worked with companies such as BDO Consulting Sdn Bhd,

Time Zone Sdn Bhd and TMF Administrative Services Malaysia Sdn Bhd. She joined MDGM as its

Financial Controller in 2017 and was promoted to her current position in 2019.

Tan Yew Hock

(age: 46 years)

Director and Head,

Business Development

Tan Yew Hock holds a London Chamber of Commerce and Industry Certificate in Business Statistics

and Management Accounting. He has over 13 years of experience in business development and

joined MDGM in 2006. Prior to joining MDGM, he worked with companies such as Low & Tan Sdn

Bhd, Inter-Pacific Securities Sdn Bhd and Intertech Component Sdn Bhd.

Tan Yew Teik

(age: 45 years)

Director and Head,

Logistics

Tan Yew Teik holds a Bachelors Degree in Public Management (Honours) from Universiti Utara. His

previous work experience was in companies such as Solectron Technology Sdn Bhd, AE Technology

Sdn Bhd and De Little Chinatown Sdn Bhd. He has about 15 years of experience in the retail

business. He joined MDGM in 2013 and was in charge of overseeing store operations. He was

appointed to his current position in 2019.

Hoe Lye Peng

(age: 53 years)

Vice President,

Distribution Centre

Hoe Lye Peng graduated from Universiti Utara Malaysia with a Bachelor of Arts (Honours) in

Economics. From 2004 to 2013, he was a Warehouse and Logistics Manager at Solid Logic Sdn Bhd.

He joined MDGM in 2013 as a Store Manager and was appointed as Head of People & Store

Department in 2015. Lye Peng was promoted to his current position in 2019. He has over 15 years

of experience in supply chain, warehousing and logistics processes.

Lau Boon Teck

(age: 40 years)

Vice President, Retail

Operations

Lau Boon Teck holds a Bachelor in Science (Agribusiness) from Universiti Putra Malaysia. From 2003

to 2010, he worked with De Little Chinatown Sdn Bhd and joined MDGM in 2010 as a Store Manager

and subsequently an Operations Manager in 2011. He was promoted in 2015 as Head of People and

Senior Area Manager and redesignated to Vice President, Retail Operations in 2019. He has over 16

years of experience in the retail industry.

Chin Guangui

(age: 30 years)

Vice President,

Marketing

Chin Guangui has a Bachelor of arts in Business with Business Communication from University of

Portsmouth, UK. He worked with Brooks Running Malaysia as a Sales & Marketing Executive from

2012 to 2014 and joined MDGM in 2014 as Assistant Manager for the marketing department. He was

promoted to Head of Marketing in 2016 and redesignated as Vice President, Marketing in 2019. He

has over 7 years of experience in marketing.

Source: Company

January 29, 2021 32

MR D.I.Y. Group (M)

Research Offices

ECONOMICS

Suhaimi ILIAS Chief Economist Malaysia | Philippines | Global (603) 2297 8682 [email protected]

CHUA Hak Bin Regional Thematic Macroeconomist (65) 6231 5830 [email protected]

LEE Ju Ye Singapore | Thailand | Indonesia (65) 6231 5844 [email protected]

Linda LIU Singapore | Vietnam | Cambodia | Myanmar | Laos (65) 6231 5847 [email protected]

Dr Zamros DZULKAFLI (603) 2082 6818 [email protected]

Ramesh LANKANATHAN (603) 2297 8685 [email protected]

William POH (603) 2297 8683 [email protected]

FX

Saktiandi SUPAAT Head of FX Research (65) 6320 1379 [email protected]

Christopher WONG (65) 6320 1347 [email protected]

TAN Yanxi (65) 6320 1378 [email protected]

Fiona LIM (65) 6320 1374 [email protected]

STRATEGY

Anand PATHMAKANTHAN

ASEAN (603) 2297 8783 [email protected]

FIXED INCOME

Winson PHOON, ACA (65) 6812 8807 [email protected]

SE THO Mun Yi (603) 2074 7606 [email protected]

REGIONAL EQUITIES

Anand PATHMAKANTHAN Head of Regional Equity Research (603) 2297 8783 [email protected]

WONG Chew Hann, CA Head of ASEAN Equity Research (603) 2297 8686 [email protected]

ONG Seng Yeow Research, Technology & Innovation (65) 6231 5839 [email protected]

MALAYSIA

Anand PATHMAKANTHAN Head of Research (603) 2297 8783 [email protected] • Strategy

Desmond CH’NG, BFP, FCA (603) 2297 8680 [email protected] • Banking & Finance

LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas Services- Regional • Automotive

ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional

YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media • Aviation

TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos

WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property

LEE Yen Ling (603) 2297 8691 [email protected] • Glove • Ports • Shipping • Healthcare • Petrochemicals

Kevin WONG (603) 2082 6824 [email protected] • REITs • Technology

Jade TAM (603) 2297 8687 [email protected] • Consumer Staples & Discretionary

Fahmi FARID (603) 2297 8676 [email protected] • Software

TEE Sze Chiah Head of Retail Research (603) 2082 6858 [email protected]

Nik Ihsan RAJA ABDULLAH, MSTA, CFTe (603) 2297 8694 [email protected] • Chartist

Amirah AZMI (603) 2082 8769 [email protected] • Retail Research

SINGAPORE

Thilan WICKRAMASINGHE Head of Research (65) 6231 5840 [email protected] • Banking & Finance - Regional • Consumer

CHUA Su Tye (65) 6231 5842 [email protected] • REITs - Regional

LAI Gene Lih, CFA (65) 6231 5832 [email protected] • Technology • Healthcare

Kareen CHAN (65) 6231 5926 [email protected] • Transport • Telcos

TAN Chin Poh Head of Retail Research (65) 6231 5928 [email protected]

Eric ONG (65) 6231 5924 [email protected] • Retail Research

Matthew SHIM (65) 6231 5929 [email protected] • Retail Research

INDIA

Jigar SHAH Head of Research (91) 22 4223 2632 [email protected] • Strategy • Oil & Gas • Automobile • Cement

Neerav DALAL (91) 22 4223 2606 [email protected] • Software Technology • Telcos

Kshitiz PRASAD (91) 22 4223 2607 [email protected] • Banks

Vikram RAMALINGAM (91) 22 4223 2607 [email protected] • Automobile • Media

INDONESIA

Isnaputra ISKANDAR Head of Research (62) 21 8066 8680 [email protected] • Strategy • Metals & Mining • Cement • Autos • Consumer • Utility

Rahmi MARINA (62) 21 8066 8689 [email protected] • Banking & Finance

Aurellia SETIABUDI (62) 21 8066 8691 [email protected] • Property

Willy GOUTAMA (62) 21 8066 8500 [email protected] • Consumer

PHILIPPINES

Jacqui De JESUS Head of Research (63) 2 8849 8844 [email protected] • Strategy • Conglomerates

Romel LIBO-ON (63) 2 8849 8844 [email protected] • Property • Telcos

Fredrick De GUZMAN (63) 2 8849 8847 [email protected] • Consumer

Bernadine B BAUTISTA (63) 2 8849 8847 [email protected] • Utilities

Rachelleen RODRIGUEZ (63) 2 8849 8843 [email protected] • Banking & Finance

THAILAND

Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Strategy • Consumer • Materials • Services

Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1395 [email protected] • Banking & Finance

Kaushal LADHA, CFA (66) 2658 6300 ext 1392 [email protected] • Oil & Gas – Regional • Petrochemicals - Regional • Utilities

Vanida GEISLER, CPA (66) 2658 6300 ext 1394 [email protected] • Property

Yuwanee PROMMAPORN (66) 2658 6300 ext 1393 Yuwanee.P @maybank-ke.co.th • Services • Healthcare

Ekachai TARAPORNTIP Head of Retail Research (66) 2658 5000 ext 1530 [email protected]

Surachai PRAMUALCHAROENKIT (66) 2658 5000 ext 1470 [email protected] • Auto • Conmat • Contractor • Steel

Suttatip PEERASUB (66) 2658 5000 ext 1430 [email protected] • Food & Beverage • Commerce

Jaroonpan WATTANAWONG (66) 2658 5000 ext 1404 [email protected] • Transportation • Small cap

Thanatphat SUKSRICHAVALIT (66) 2658 5000 ext 1401 [email protected] • Media • Electronics

Wijit ARAYAPISIT (66) 2658 5000 ext 1450 [email protected] • Strategist

Theerasate PROMPONG (66) 2658 5000 ext 1400 [email protected] • Equity Portfolio Strategist

Apiwat TAVESIRIVATE (66) 2658 5000 ext 1310 [email protected] • Chartist and TFEX

VIETNAM

Quan Trong Thanh (84 28) 44 555 888 ext 8184 [email protected] • Banks

Hoang Huy, CFA (84 28) 44 555 888 ext 8181 [email protected] • Strategy

Le Nguyen Nhat Chuyen (84 28) 44 555 888 ext 8082 [email protected] • Oil & Gas

Nguyen Thi Sony Tra Mi (84 28) 44 555 888 ext 8084 [email protected] • Consumer

Tyler Manh Dung Nguyen (84 28) 44 555 888 ext 8180 [email protected] • Utilities • Property

Nguyen Thi Ngan Tuyen Head of Retail Research (84 28) 44 555 888 ext 8081 [email protected] • Food & Beverage • Oil & Gas • Banking

Nguyen Thanh Lam (84 28) 44 555 888 ext 8086 [email protected] • Technical Analysis

January 29, 2021 33

MR D.I.Y. Group (M)

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies d iscussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should no t be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “ant icipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to t ime participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. One or more directors, officers and/or employees of MKE may be a director of the issue rs of the securities mentioned in this report to the extent permitted by law.

This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.

Singapore This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

Thailand Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Kim Eng Securities (Thailand) Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability whatsoeve r for the actions of third parties in this respect.

Due to different characteristics, objectives and strategies of institutional and retail investors, the research products of MBKET Institutional and Retail Research departments may differ in either recommendation or target price, or both. MBKET reserves the rights to disseminate MBKET Retail Research reports to institutional investors who have requested to receive it. If you are an authorised recipient, you hereby tacitly acknowledge that the research reports from MBKET Retail Research are first pr oduced in Thai and there is a time lag in the release of the translated English version.

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does not confirm nor certify the accuracy of such survey result.

The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Tha ipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of the assessment result.

US This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a -6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned within must do so with: Maybank Kim Eng Securities USA Inc. 400 Park Avenue, 11th Floor, New York, New York 10022, 1-(212) 688-8886 and not with, the issuer of this report.

January 29, 2021 34

MR D.I.Y. Group (M)

Disclosure of Interest

Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to he rein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Singapore: As of 29 January 2021, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report. Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: As of 29 January 2021, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. India: As of 29 January 2021, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst or their associate / relative does not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject companies except as otherwise disclosed in the research report.

In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits fr om the subject companies or third party in connection with the research report on any account what so ever except as otherwise disclosed in the research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS

Analyst Certification of Independence

The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings

Maybank Kim Eng Research uses the following rating system

BUY Return is expected to be above 10% in the next 12 months (including dividends)

HOLD Return is expected to be between 0% to 10% in the next 12 months (including dividends)

SELL Return is expected to be below 0% in the next 12 months (including dividends)

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regula ted, by the Financial Conduct Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such li nks is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

DISCLOSURES

Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938 - H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by Maybank KERPL (Co. Reg No 198700034E) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities (“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the Financial Services Authority (Indonesia). Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Conduct Authority.

January 29, 2021 35

MR D.I.Y. Group (M)

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

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Tel: (603) 2059 1888;

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(London) Ltd

PNB House

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London EC4V 4AY, UK

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Inc

400 Park Avenue, 11th Floor

New York, New York 10022,

U.S.A.

Tel: (212) 688 8886

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Stockbroking Business:

Level 8, Tower C, Dataran Maybank,

No.1, Jalan Maarof

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Home improvement retail heavyweight; fairly valued

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