The counter was up eight sen to RM1.83 at 11am, with a total of 4.02 million shares changing hands.

The company had earlier announced that it posted a higher net profit of RM472.95 million in FY2022 from RM431.83 million in FY2021 on solid revenue growth.

However, its earnings were affected by the one-off additional prosperity corporate tax of RM10.2 million on subsidiaries with chargeable income of above RM100 million at the tax rate of 33%.

Maybank Investment Bank Bhd (Maybank IB) said the company’s FY2023 outlook is set to improve with inventory and labour shortage issues having been alleviated.

Earnings will also be driven by new store expansion while a higher margin is expected to materialise through recent product price adjustments and the absence of a prosperity tax in FY2023.

“We believe MR DIY is on steadier footing operationally this financial year given easing freight costs, (higher) product prices and continued ability to expand its store network,” Maybank IB said.

“Inflationary pressures will be an ongoing dampener to consumer sentiment but the group’s product affordability and mass market appeal should cushion the effects of potentially softer consumer spending,” it said in a research note.

The research firm has maintained its “buy” call with a lower target price of RM2.40.

RHB Investment Bank Bhd is also optimistic about MR DIY’s growth prospects, taking into consideration its solid underlying fundamentals and strong brand equity.

The group is targeting to open at least 180 stores this year as it sets its sights on extending its reach to more consumers, it noted.

“We maintain a ‘buy’ call with a new target price of RM2.48 per share,” RHB Investment added.