Kota Kinabalu: MR DIY Group (M) Bhd’s share price has fallen 23.8 per cent year-to-date, closing at RM1.05 on Thursday, amid concerns over growing competition from China-based e-commerce platform Pinduoduo.
The decline represents a drop of 34.4 sen, bringing the group's market capitalisation to RM9.95 billion. The retailer recorded a 3.6 per cent increase in revenue in the second quarter of 2026, but its net profit fell 15.2 per cent.
Analysts attributed the pressure partly to rising overheads, minimum wage increases, and rapid store expansion, as well as competition from online retailers offering low-priced products and subsidised shipping.
However, analysts said Pinduoduo's impact was largely concentrated on selected product categories. At the same time, MR DIY retained an advantage in providing immediate access to household and hardware essentials through its physical stores.
In a research note dated Oct 21, CGS International said concerns over Pinduoduo's entry into Malaysia may be overstated, describing its free-shipping promotions as a temporary headwind rather than a structural threat. It maintained a target price of RM1.90 and recommended investors add the stock to their portfolios.
Market sentiment remained largely positive, with 14 of 17 research houses maintaining a “Buy” rating. MR DIY is scheduled to release its third-quarter financial results on Nov 17.
