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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

Mr DIY Faces Store Saturation Concerns Despite 11% Profit Growth

Quick Summary FY2025 core net profit up 11% to RM633m Same-store sales growth (SSSG) still weak at  -2% for full year Analysts downgrade on  store saturation and cannibalisation risks YTD share price up 22%, limiting upside Strong Earnings, But Growth Questions Emerge Shares of  Mr DIY Group (M) Bhd  are facing more cautious analyst views, even after delivering solid FY2025 earnings. FY2025 highlights: Core net profit:  RM633 million ( +11% YoY ) Gross margin expansion driven by: Lower procurement costs Stronger ringgit However: Full-year SSSG remained negative at -2% 4QFY2025 SSSG turned positive at  +1.4% , helped by festive demand and promotions Key issue:  Organic growth remains soft despite margin strength. Why Analysts Are Turning Cautious 1️⃣ Store Saturation Risk The group plans to open  155 new stores in FY2026 , raising concerns of: Sales cannibalisation Slower sales per square foot Market nearing maturity 2️⃣ Valuation No Longer Cheap S...

A Trader’s Guide to Navigating Malaysia's Budget 2025

Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025 , as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects . As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers , civil servant salary hikes , and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings . In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway , with companies like Gamuda , Sunway Construction , and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector. The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power Int...

Weaker Q3 Results for Malaysian Consumer Stocks Amid Persisting Weak Sentiment

CIMB Securities has maintained a "neutral" outlook on the consumer sector, predicting softer quarter-on-quarter results for Q3 2024, following weak consumer sentiment seen in Q2 2024. The lack of festive seasons in the July-September period is also expected to contribute to the sector's seasonal weakness. Key Takeaways: Persisting Weak Sentiment and Limited Price Hikes : CIMB Securities notes that consumer companies face limited room for price hikes due to weak consumer spending patterns, with any adjustments aimed at covering higher input costs. In the recently concluded Q2 2024 results, sales were weaker than expected due to low sentiment and boycotts, with earnings exceeding forecasts primarily due to better margins. Medium-Term Catalysts for Recovery : A civil service salary hike starting in December is expected to boost purchasing power, potentially leading to an increase in private sector minimum wages. Higher consumer spending power could shift the sales mix toward...