MRDIY's 9MFY24 results missed expectations on softer sales and rising cost pressures. Despite 8% revenue growth, 9MFY24 core net profit rose by a smaller 6% YoY on higher operating costs, including labour, utilities and depreciation. Looking ahead, revenue growth will stem from strategic expansion plans for 190 new stores in FY25, and new concept stores like 'The Colorist' under KKV. Keeping our revenue forecasts largely unchanged, we cut our FY24-25F earnings by 9-8% and correspondingly adjust our TP to RM2.20 (from RM2.40 ) to reflect short-term headwinds. After a 45% YTD gain, our total returns now map to a MARKET PERFORM, from OUTPERFORM. MRDIY's 9MFY24 net profit of RM425m (after excluding RM3.7m one- off charges associated with new automated warehouse) came in below expectations at 65% and 66% of our full-year forecast and the full-year consensus estimate, respectively.