Hlib Maintains 'buy' Call On Mr Diy, Hibiscus Petroleum

KUALA LUMPUR, May 10 (Bernama) -- Hong Leong Investment Bank Bhd (HLIB) has maintained a 'Buy' call on MR D.I.Y. Group (M) Bhd after it registered a satisfactory financial performance in the first quarter ended March 31, 2024 (1Q 2024).

The group's net profit in 1Q 2024 expanded to RM144.88 million from RM127.77 million in 1Q 2023, while revenue grew 9.2 per cent year-on-year to RM1.14 billion from RM1.05 billion previously, primarily attributed to positive contributions from new stores.

HLIB said the group remains focused on the expansion of the store network, optimising revenue per square foot and operational efficiency to drive financial performance.

"Furthermore, we opine that MR DIY is poised to benefit from the recent government announcement of a new flexible EPF (Employees Provident Fund) account and civil servants pay rise," it said in a note today.

At 11.23 am, Mr DIY’s share price fell two sen to RM1.77, with 5.04 million shares traded.

Meanwhile in separate note, HLIB has also maintained its 'Buy' call on Hibiscus Petroleum Bhd given its strong foothold in the upstream energy space.

The investment bank anticipates Hibiscus’s earnings to bounce back in the fourth quarter of its financial year ending June 30, 2024 (4Q FY2024), backed by higher guided offtake volume of 2.06 million barrels of oil equivalent (boe) with the assumption that Brent oil price would stay above US$80 per barrel.

To recap, Hibiscus recorded a core net profit of RM110.6 million in 2Q FY2024.

"We expect sequential weakness in 3Q FY2024 given the lower guided offtake volume of 1.77 million boe (vs 1.9 million in 2Q FY2024), with flattish average Brent oil price at US$82 per barrel," it added.

At 11.23 am, Hibiscus Petroleum’s share price was flat at RM2.61 with 287,400 units changing hands.

-- BERNAMA