This story appears in the June 2023 issue of Forbes Asia. Subscribe to Forbes Asia
This story is part of Forbes’ coverage of Malaysia’s Richest 2023. See the full list here.
After hitting a pandemic-driven high in 2021, shares of Mr. D.I.Y. Group have taken a hammering as rapid growth slows at Malaysia’s largest home improvement retailer. Tan Yu Yeh, executive vice chairman, who founded the low-cost retailer and his brother Tan Yu Wei, executive vice president, saw their wealth drop over 20% to $1.9 billion.
Sales grew roughly 18% in 2022 to 4 billion ringgit ($898 million) compared with a 32% rise in 2021 on the back of easing pandemic restrictions and foot traffic at new stores. Looking ahead, the company expects rising inflation to attract more budget-conscious shoppers, while a recovery from supply chain upheaval and a strengthening ringgit should also contribute to stronger earnings. Ahmad Ramzani Ramli, a Kuala Lumpur-based analyst at Kenanga Investment Bank says the chain’s strong market position will help it remain resilient to headwinds. “Mr. D.I.Y.’s ability to change its inventory to cater to market needs is also a plus point,” he adds.
The retailer, which started with a single store in Kuala Lumpur in 2005, grew its network from 593 stores at the start of 2020 to 1,080 stores across its three brands, Mr. D.I.Y., Mr. Toy and Mr. Dollar, in Malaysia and Brunei at the end of last year. In March, Malaysian private equity firm Creador sold the last of its shares in the retailer because the fund’s term was ending, with the Tehs among the buyers. Creador had emerged as the second-largest shareholder after the group’s $1.5 billion ringgit ($361.7 million) IPO in 2020.