By Ying Xian Wong


Mr. D.I.Y. Group shares rose early Thursday after robust second-quarter earnings.

Shares of the home-improvement retailer jumped 6.3% to 1.52 ringgit, trimming 12-month losses to 30%.

Mr. D.I.Y. said late Wednesday that its quarterly net profit was 11% higher at MYR150.3 million ($32.9 million), as revenue rose on the contribution from new stores and gross profit margin improved, driven by lower freight costs and higher selling prices. Quarterly revenue increased 4.9% from a year earlier to MYR1.1 billion.

Citi said Mr. D.I.Y.'s dividend of MYR0.008 for the quarter represented a record 50% payout ratio for the company.

The company's management has hinted that its "major capex cycle" is nearing a conclusion, which will enable Mr. D.I.Y. to increase dividend payments, Citi analyst Wai Hoong Liew said in a note.

Citi said it expects the share price to react positively to the decent results and high dividend payout. It maintained its buy rating and MYR2.07 target price on the stock.

Kenanga Investment Bank upgraded Mr. D.I.Y. to outperform from market perform and kept the target price at MYR1.67, saying that "value has emerged after the recent weakness in its share price."


Write to Ying Xian Wong at yingxian.wong@wsj.com


(END) Dow Jones Newswires

08-09-23 2245ET