share

PADINI (7052) : PADINI HOLDINGS BERHAD

kwokyau911
anyone q at 1.4 today? notworthy
14 Mar 2012, 09:30 PM
ILoveDividend
Research from OSK
TARGET PRICE: RM1.80thumbup

Rising to The Occasion
We recently had a follow-up visit to Padini, which is one of our Top Buys for 2012.
We continue to like the stock’s resilient performance amid an increasingly turbulent operating environment. Despite the volatility in cotton prices and intense competition in the retail space, we remain confident that the company’s high inventory and wider retail network relative to its peers will hold it in good stead. Maintain BUY, with a FV of RM1.80, based on 14x FY12 EPS.

Gaining prominence.
After providing 3 Good reasons (Good track record, Good growth story and Good pricing) why investors should like Padini in our previous report, the share price has rallied by a strong 13.3% to RM1.45 in just one month. Although the volatility in cotton prices and entry of new competitors might affect garment retailers in general, we continue to believe that Padini will stand strong amid the tough environment given its high inventory level and wide network of outlets versus its peers.

Unfazed by the challenges ahead.
From a macro perspective, India‟s cotton export ban will definitely affect textile and garment retailers but we believe Padini will be able to weather the storm in view of its high level of inventory and cash pile. The entry of big overseas retailers such as Top Shop, Zara, MNG, Cotton On and Uniqlo in recent years has certainly raised the bar for local garment retailers. Another fashion retailer, Hennes & Mauritz‟s (H&M), will also open its first store in Malaysia this year. We think that Padini‟s strong retail network and wide customer base will continue to support its growth, although the competition is becoming tougher.

Spreading its wings overseas.
FJ Benjamin Holdings, an industry leader in brand building and management, and the development of retail and distribution networks, has approached Padini with the view to franchising the “Vincci” brand (under the brand name of „VNC‟) in Indonesia. The VNC franchise stores in Indonesia have been languishing due to pricing problems relating to a luxury tax on its products. The discussions are still at the early stage but if the deal goes through, it would see Padini making a significant breakthrough in expanding overseas. Similarly, the group is also in the midst of revamping its franchisee model in Thailand.

Maintain BUY.
Going forward, the group aims to introduce apparel based on overseas styles and fashion at a faster pace to Malaysians by ramping up its efficiency and come up with new garments in 3 to 4 weeks. Maintain BUY, with the stock‟s fair value unchanged at RM1.80.
14 Mar 2012, 10:02 PM
Xenox
target price 1.90
19 Mar 2012, 12:15 AM
kwokyau911

i sell to u, u wan? drool
19 Mar 2012, 04:32 AM
Akehlishi
I m waiting u at 1.35-1.36 tomolodrool
21 Mar 2012, 07:04 PM
Xenox

Helo kwokyau911 ,nice to meet u..
where r u come from?
21 Mar 2012, 08:13 PM
kwokyau911

hi bro, im from kl, what bout u?
22 Mar 2012, 02:38 AM
Xenox

hi,kwokyau911
same as u from kl..
so far u r a broker?
22 Mar 2012, 02:54 PM
kwokyau911

nola, i am just a student, y? actually i am looking for job. any vacancies? wub
23 Mar 2012, 02:18 PM
Xenox

o i see...u mean part time or full time job??because u r a student...
24 Mar 2012, 10:31 AM
kwokyau911


hmm recently working part time job during weekend. so looking for full time during weekdays :D
26 Mar 2012, 09:08 PM
Investment88
PADINI TESTING ITS HURDLE OF RM 1.70-RM 1.80....

ONCE THIS HURDLE CLEAR, IT WILL SEND PADINI SHARE PRICE TO RM 2.20 OR THE NEXT HURDLE....

BETTER THAN EXPECTED RESULT WITH 20 CTS DIVIDEND ANNOUNCE BT THIS WEEK...
22 May 2012, 03:24 PM
ILoveDividend


Woh...20 cents dividend? This is more than 10% yield based on current price.
22 May 2012, 04:15 PM
Investment88


Bro... Of course something brewing for this PADINI....

Someone has press down the price since ytd for accumulation....

This PADINI sure blast before announcement....
23 May 2012, 06:30 PM
azlan
PADINI ciayo. .ciayo. .thumbupthumbup
23 Aug 2012, 10:44 AM
Vinz

Hi Investment88, as u say padini give out 20 cents dividend, but I juz see 2 cents given out from the chart above, is it padini stock split already?
And I found that this stock keep going up and never drop, is it now is good time to jump in? Any comments cuz I am beginner in stock investment.
03 Sep 2012, 09:15 AM
chang
still a good buy at the moment? any comment?
03 Dec 2012, 04:37 PM
ryuk
I'm planning to BUY and HOLD. thumbup
09 Feb 2013, 11:35 PM
rockbum
wonder if any corporate developments that pushed the share prices up last week.
27 May 2013, 01:52 PM
CNY2012

Maybank Research ups Padini target price to RM2.35

KUALA LUMPUR: Maybank Investment Bank Research has raised the target price of Padini Holdings from RM1.96 to RM2.35, which is an upside of 25%.

It said on Padini was on track to add 11 new big outlets in FY14 and it is eyeing another five new locations for FY15.

Mayban Research said Padini group will have seven new Brands Outlet (BO) and four new Padini Concept Stores (PCS) by end-FY14 as compared to its original assumption of five new BO and four new PCS.

“This will add 90,000-100,000 sq ft to the group’s total retail space of about 720,000 sq ft as at end-FY13 (+14% YoY),” it said.





Maybank Research said BO will spearhead earnings growth over the next few years, given its value proposition and bundling strategy which are well accepted by the shoppers.

Positively, same-store sales growth (SSSG) for BO and PCS improved in 2QFY14, taking 1HFY14 SSSG of BO and PCCS to +24% and -3.6% respectively.

“The group is reviewing its pricing strategy to offer more value-added products amid rising living costs. We raise our earnings by 2% for FY14 and FY15, taking into account the higher-than-expected new store openings,” it said.

Maybank Research said for FY15-16, it assumed a flat SSSG for all brands except for BO (+5% to 7% per annum).

“Higher valuations are warranted for Padini, given that the domestic consumer sector trades at a CY14 price-to-earnings ratio of 18.2 times and offers a two-year (CY13-15) earnings CAGR of just 10% vs 12.6 times PER and 12% earnings compounded annual growth rate for Padini.

“Moreover, Padini’s yields are attractive at 5.9% for 12 months forward. We are raising our TP to RM2.35 (+25%) on a higher CY14 PER target of 14.8 times (12 times previously), two standard deviation above its historical mean,” it said.
13 Apr 2014, 09:06 AM

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