This article appeared in the June 2023 issue of Forbes Asia. Subscribe to Forbes Asia
This article is part of Forbes magazine’s coverage of Malaysia’s richest people in 2023.See full list here.
Malaysia’s largest home improvement retailer Mr. DIY Group’s share price has taken a hit as rapid growth slows after hitting a pandemic-driven all-time high in 2021. The assets of executive vice chairman Tan Yu Yeh, who founded the low-end retailer, and his brother, executive vice president Tan Yu Wei, fell by more than 20% to $1.9 billion.
Sales in 2021 were up 32% on the back of deregulation due to the pandemic and new store traffic, while sales in 2022 are expected to rise by about 18% to 4 billion ringgit ($898 million). became. Looking ahead, the company expects rising inflation to attract more budget-conscious shoppers, while a recovery from supply chain disruptions and a stronger ringgit will also help boost earnings. Ahmad Ramzani Ramli, an analyst at Kuala Lumpur-based Kenanga Investment Bank, said the chain’s strong market position is resilient to headwinds. “Mr. DIY is also a plus point that we can change our inventory to meet the needs of the market,” he added.
Starting with one store in Kuala Lumpur in 2005, the retailer has expanded its network from 593 stores in early 2020 to 1,080 stores across Malaysia and Brunei under three brands, Mr. DIY, Mr. Toy and Mr. Dollar. . at the end of last year. Malaysian private equity firm Clairdor sold its last stake in the company in March, with buyers including the Tess family, citing the end of the fund’s term. Clairdor emerged as the second largest shareholder after the group’s 1.5 billion ringgit ($361.7 million) IPO in 2020.