DOCSLIB.ORG

Padini Holdings

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Padini Holdings Malaysia Company Guide Padini Holdings Version 17 | Bloomberg: PAD MK | Reuters: PDNI.KL Refer to important disclosures at the end of this report DBS Group Research . Equity 28 May 2020 HOLD (Upgrade from FULLY VALUED) Still not fashionable Last Traded Price ( 27 May 2020): RM2.74 (KLCI : 1,451.73) Price Target 12-mth: RM2.50 (-9% downside) (Prev RM2.80) Reasonably priced. We upgrade our recommendation for Padini Analyst Holdings Bhd (PAD) to HOLD with a lower TP of RM2.50. King Yoong CHEAH +60 32604 3908 [email protected] Although FY20 is undoubtedly a challenging year for the group What’s New given the Covid-19 pandemic concerns, we expect its 3QFY20 earnings dropped 52% y-o-y, mainly due to operations to start picking up from FY21 onwards. The stock reduced revenue during MCO period and reduced has dropped >15% on a YTD basis, which we believe has priced visitations to high traffic areas in the negatives. Furthermore, PAD could benefit from downtrading, as the brand is associated with trendy, good- Cut FY20-22F earnings by 2-54% for adverse impact of quality and value-for-money products. Its net cash (excluding Covid-19 pandemic and weak consumer sentiment lease liabilities) per share of 68 sen as at end March 2020 Net cash per share (excluding lease liabilities) of 68 sen should help the group to withstand the near-term challenges. as at end-March to help weather near-term headwinds Upgrade to HOLD with lower TP of RM2.50 Where we differ. Our FY20/21/22 earnings estimates are below consensus in view of the subdued consumer sentiments which could take longer to recover. We cut our FY20/21/22 earnings estimates for the group by 54%/16%/2%, upon revising our Price Relative same store sales growth (SSSG) assumptions to -29%/32%/5% (1%/0.5%/0.5% growth previously). Our TP is also more conservative relative to consensus. We believe that our 12x PE target is justified, as PAD no longer fits the profile of a growth stock in view of the increasingly competitive operating environment. Forecasts and Valuation Potential catalyst. Weaker-than-expected topline growth due to FY Jun (RMm) 2019A 2020F 2021F 2022F (1) lower demand for its product offerings, and (2) weaker- Revenue 1,783 1,293 1,635 1,764 than-expected rebound in consumer spending. EBITDA 254 150 235 270 Pre-tax Profit 219 95.6 183 222 Valuation: Net Profit 160 70.7 136 164 Post earnings revisions and rolling forward our valuation base Net Pft (Pre Ex.) 160 70.7 136 164 Net Pft Gth (Pre-ex) (%) (10.1) (55.9) 91.8 21.2 to FY21, our TP that is pegged to 12x FY21 EPS, drops to EPS (sen) 24.4 10.8 20.6 25.0 RM2.50. EPS Pre Ex. (sen) 24.4 10.8 20.6 25.0 EPS Gth Pre Ex (%) (10) (56) 92 21 Key Risks to Our View: Diluted EPS (sen) 24.4 10.8 20.6 25.0 Net DPS (sen) 11.5 10.0 11.5 11.5 Stronger-than-expected rebound in consumer spending and BV Per Share (sen) 110 111 120 133 profit margin comes in higher than expected. PE (X) 11.2 25.5 13.3 11.0 PE Pre Ex. (X) 11.2 25.5 13.3 11.0 At A Glance P/Cash Flow (X) 10.5 14.7 12.9 10.2 Issued Capital (m shrs) 658 EV/EBITDA (X) 5.2 12.0 7.4 6.1 Mkt. Cap (RMm/US$m) 1,803 / 415 Net Div Yield (%) 4.2 3.6 4.2 4.2 P/Book Value (X) 2.5 2.5 2.3 2.1 Major Shareholders (%) Net Debt/Equity (X) CASH CASH CASH CASH Yong Pang Chaun Holdings Sdn Bhd 43.7 ROAE (%) 23.3 9.7 17.9 19.7 Skim Amanah Saham Bumiputera 5.0 Earnings Rev (%): (54) (16) (2) iCapital.biz 3.5 Consensus EPS (sen): 19.7 22.4 24.4 Free Float (%) 56 Other Broker Recs: B: 7 S: 3 H: 3 3m Avg. Daily Val (US$m) 1.0 Source of all data on this page: Company, AllianceDBS, Bloomberg GIC Industry : Consumer Discretionary / Retailing Finance L.P ed: CK/ sa: WMT, PY, CS Company Guide Padini Holdings WHAT’S NEW Soft earnings dragged by Covid-19 pandemic Weak quarter due to Covid-19 pandemic. PAD reported financial crisis. The drop below the threshold implies earnings of RM17m for 3QFY20 (-52% y-o-y, -70% q-o-q). increasingly cautious consumer spending, which does not The y-o-y decline in earnings was mainly due to (1) revenue augur well for consumer discretionary companies like PAD. falling by 27% during the quarter compared with the With the on-going uncertainties, we are not surprised if the corresponding period last year, dragged by the CSI drops further in 2QCY20 and takes a long time to implementation of the Movement Control Order (MCO) since recover. 18 March 2020 and reduced visitations to malls prior to that Cut FY20-22 earnings by 2-54%. We have cut our due to concerns over the Covid-19 pandemic, and (2) adverse FY20/21/22 earnings estimates for the group by impact of MFRS16: Leases’ Adoption, which lowered its 54%/16%/2%, upon revising our same store sales growth earnings by RM4m. (SSSG) assumptions to -29%/32%/5% ( 1%/0.5%/0.5% No dividend was declared during the quarter. There is no growth previously) to reflect (1) the loss of sales in 4QFY20 dividend declared during the quarter. YTD, the group has (end June) during the MCO period, and (2) the declared a dividend per share (DPS) of 5 sen. In view of its implementation of social distancing and weakened consumer strong net cash balance of 68 sen/share as at end-March sentiment to impact its FY20/21 earnings. 2020 (excluding lease liabilities created under MFRS 16: We have assumed the group to make about RM21m losses in Leases, which we view as a pure accounting adjustments), we 4QFY20 due to temporary closure during the MCO period forecast that management will still pay a DPS of 10 sen (vs. and subdued sales when recommencing its operations during previous assumption of 11.5 sen) for FY20, which is the the CMCO period. lowest absolute dividend paid since FY14. On a positive front, PAD could benefit from downtrading, as Operations affected by MCO. PAD has temporarily suspended the brand is associated with trendy, good-quality and value- its operations during the 39-day enforcement period of the for-money products. MCO effective from 18 March till 3 May in response to the Covid-19 outbreak. The group has gradually opened its Upgrade to HOLD with lower TP of RM2.50. Post earnings outlets upon the introduction of the Conditional Movement revisions and rolling forward our valuation base to FY21, our Control Order (CMCO), which is a relaxed iteration of the TP that is pegged to 12x FY21 EPS, drops to RM2.50. Our PE MCO, starting from 4 May. target of 12x is close to its historical 5-year mean prior to the PE expansion in July 2017. We believe that our 12x PE target Implementation of social distancing to impact sales per is justified, as PAD no longer fits the profile of a growth stock outlet. We believe that the implementation of social in view of the increasingly competitive operating distancing in the Covid-19 era, such as (1) ensuring a environment. minimum distance between customers, and (2) limiting the number of customers per outlet during peak periods to Notwithstanding our conservative stance on the group’s near- reduce crowding when the group restarts operations during term earnings prospects, we note that the stock has dropped the CMCO period. >15% on a YTD basis, which we believe has priced in the negatives. Its net cash (excluding lease liabilities) per share of Furthermore, fitting and alteration services are not provided 68 sen as at end-March 2020 also should help the group to during this period, which could adversely impact customer’s withstand the near-term challenges. As such, we upgrade our shopping experience. We believe that these measures could recommendation for the stock to HOLD. reduce its sales per outlet. Expect discretionary spending to be subdued. Being a fashion company that focuses on non-essential consumer items, we are cautious that PAD’s topline growth is likely to be impacted by the subdued consumer spending. The Malaysian Institute of Economic Research’s recently released Consumer Sentiment Index (CSI) for 1Q20 recorded a sharp contraction of 31 points q-o-q to a 32-year low of 51.1 in 1Q2020. The 31-point contraction is also the sharpest quarter-on-quarter drop since 2Q2008, during the global Page 2 Company Guide Padini Holdings Quarterly Income Statement (RMm) FY Jun 3Q2019 2Q2020 3Q2020 % chg yoy % chg qoq Revenue 474 495 347 (26.8) (29.9) Cost of Goods Sold (296) (297) (199) (32.8) (32.9) Gross Profit 178 198 148 (16.6) (25.3) Other Oper. (Exp)/Inc (133) (120) (121) (8.7) 1.1 Operating Profit 45.0 78.4 27.0 (40.0) (65.6) Other Non Opg (Exp)/Inc 0.0 0.0 0.0 nm nm Associates & JV Inc 0.0 0.0 0.0 nm nm Net Interest (Exp)/Inc 2.10 (3.2) (2.9) nm 9.4 Exceptional Gain/(Loss) 0.0 0.0 0.0 nm nm Pre-tax Profit 47.1 75.2 24.1 (48.8) (68.0) Tax (12.4) (19.4) (7.5) (39.5) (61.3) Minority Interest 0.0 0.0 0.0 nm nm Net Profit 34.7 55.8 16.6 (52.2) (70.3) Net profit bef Except.
Load more

Recommended publications
  • Distribution Channels 1)
    24 Aug 2018 Accessing the ASEAN Consumer Market: Fashion and Accessories (Distribution Channels 1) Concept stores, multi-brand stores and department stores, are the dominant distribution channels for fashion and accessories in major cities of ASEAN. Hong Kong fashion brands, designers and exporters may find the right distribution channels which match their product positioning to tap the opportunities in the region. Concept Stores Unlike ordinary apparel shops, concept stores sell well-curated products that match the theme of the store. Handpicked products are pulled together from different brands and designers, and the shop décor is designed with different aesthetic approaches. A concept store usually spans different lines, such as fashion, beauty and homewares, and the display mixes these lines and products together in an attractive manner. A concept store often evokes a lifestyle that appeals to a specific target audience. The products and design of the store tend to change regularly to keep telling that story in new and interesting ways. Many of them offer extra experiential elements, such as a café or events space, which help build a community around the lifestyle they embody. Notable Examples of Concept Stores in ASEAN Indonesia THE GOODS DEPT THE GOODS DEPT is a curated concept store based in Jakarta, Indonesia. The unique and multidimensional retail environment quickly became the hub for alternative fashion and lifestyle products from young, independent Indonesian designers and a selection of international brands. The store houses The Goods Café that brings the relaxed ambiance of the American west coast to the table. The store also features events, such as art exhibitions and film screenings.
    [Show full text]
  • QL Resources
    BIMB SECURITIES RESEARCH Thursday, 19 July, 2012 MARKET INSIGHT Re-Initiate Coverage PP16795/03/2013(031743) Padini Holdings Buy▲ Great Brand Comes with Great Value Price RM1.92 Target Price (+14.2% upside)RM2.13 Stock Data We are re-initiating our coverage on Padini Holdings with a Bloomberg Ticker PAD MK Altman Z-score 5.4 BUY recommendation based on a target price of RM2.13 Market Cap Equity1,217.1 YTD price chg 69.7% Issued shares 657.9 YTD KLCI chg 4.4% which is derived by pegging a PER of 12x over FY13 EPS of 52-week range (H) 1.88 Beta 1.3 17.8 sen. We believe Padini to enjoy solid earnings growth 52-week range (L) 0.82 Major Shareholders going forward due to (i) an aggressive outlet expansion by 3-mth avg daily volume 1,669,835 Pang Chaun Yong 44.0% end FY12, (ii) Malaysia’s youthful population with high Free Float 47.6% Skim AmanahSaham 5.0% propensity to spend and (iii) positive outlook in the Shariah Compliant Y BuCapital Dynamics Ass 3.5% country retail industry. Share Performance (%) 1mth 3mth 12mth A regional brand. Padini is one of the very few “Made in Absolute 20.0 30.9 82.3 Malaysia” retail brands that has foot prints across the region vs. KLCI 67.2 27.8 67.2 namely Thailand, Brunei, Saudi Arabia, the Philippines, Cambodia, Egypt, Oman, United Arab Emirates, Indonesia, Financial Highlights Syria, Pakistan, Qatar, Bahrain and Morocco. FYE 30 June 2009 2010 2011 2012E 2013E (RMm)Revenue 475.5 518.8 568.5 732.9 850.2 Bountiful profits in store.
    [Show full text]
  • Dynamics of the Textiles & Apparel Industries in Southeast Asia
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Hosei University Repository Dynamics of the Textiles & Apparel Industries in Southeast Asia : A Preliminary Analysis 著者 Esho Hideki 出版者 Institute of Comparative Economic Studies, Hosei University journal or Journal of International Economic Studies publication title volume 29 page range 85-106 year 2015-03 URL http://hdl.handle.net/10114/10424 Journal of International Economic Studies (2015), No.29, 85‒106 ©2015 The Institute of Comparative Economic Studies, Hosei University Dynamics of the Textiles & Apparel Industries in Southeast Asia — A Preliminary Analysis — Hideki Esho Hosei University A Paper presented at the ICES International Conference Institute of Comparative Economic Studies, Hosei University “Asian Economy at the Crossroads: China, India, and ASEAN” March 1, 2014 Abstract The apparel industry is a representative case of a buyer-driven global value chain, as suggested by Gary Gereffi. We examine this hypothesis by focusing on the textile and apparel industries in Southeast Asian countries, especially the Philippines, Malaysia, and Thailand. We found that there are two different kinds of value chains in these industries. In one, the lead firms are engaged in chemical fiber production, and, in the other, the lead firms are engaged in fast fashion retailing. The former is a producer-driven chain and the latter is a buyer-driven chain. In Southeast Asian countries today, we find these two different chains. Japanese chemical fiber producers during the 1960s and 1970s represented the former case, and today this type is found among Indian chemical fiber producers such as Reliance Industries, the Indorama group, and the Aditya Birla group.
    [Show full text]
  • Finding Diamonds in the Rough “Rough Diamonds May Sometimes Be Mistaken Our Best Investment Ideas for Worthless Pebbles” Thomas Browne
    Thematic Report Regional 29 July 2020 Finding Diamonds In The Rough “Rough diamonds may sometimes be mistaken Our Best Investment Ideas for worthless pebbles” Thomas Browne In this challenging environment, characterised by unpredictability over the Some See Coal, We See Diamonds COVID-19 pandemic/risk of new infections, persistent pressures on tourism- exposed economies, volatility and complexity, we decided to mine for diamonds in the rough. The investment ideas we provide are a selection of stocks chosen by individual analysts following this criteria: 1. ROEs of 15% or above; 2. Net debt/Shareholders’ funds <0.7x; 3. Increasing margins; 4. Trading below their respective industry average multiples; The table below shows our 13 “diamonds”. Each company also exhibits a reasonable level of corporate governance, as investors have been rewarding governance factors more highly than other ESG criteria. Our methodology uses a fundamental bottom-up analysis, coupled with Source: RHB RHB’s on-the-ground insights. Our sector analysts provided their assessments of the average market multiples for the respective sectors that the companies operate Our criteria used to discover the diamonds: in. As one of the criteria is “trading below the average market multiples”, it means these stocks are out of favour currently. In parallel, the list was further refined 1. ROEs of 15% or above; based on our assessments of each company’s potential to grow margins, without a) ROE in 2020 above 15% b) ROE in 2021 > ROE in 2020 compromising on ROE, while having a low gearing level and practising reasonable corporate governance. 2. Net debt*/Shareholders’ funds <0.7x *Net Debt = ST debt + LT debt – Cash & equivalents Environmental Social and Governance (ESG) theme is gaining traction.
    [Show full text]
  • 2020 Q4 Business Overview
    PRIVATE AND CONFIDENTIAL 2020 Q4 Business Overview 27 January 2021 PRIVATE AND CONFIDENTIAL PRIVATE AND CONFIDENTIAL Disclaimer The information contained in this document is provided for information purposes only and does not constitute an offer of services or solicitation. No information or data contained herein may be reproduced by any process whatsoever without written consent. This presentation, prepared by Pavilion REIT Management Sdn Bhd (“the Manager”) may contain certain forward-looking statements and is prepared based on the Manager’s current view of future events that may involve certain assumptions, risks and uncertainties. Past performance does not necessarily signify its future performance. No responsibility is accepted for any direct or indirect damages or consequences as a result of inaccuracy of information reproduced in this document nor for any action taken in reliance thereon. 1 PRIVATE AND CONFIDENTIAL Table of Contents Section 1 Overview Section 2 Financial Results Section 3 Investors Relation Section 4 Pavilion Kuala Lumpur Mall Section 5 Intermark Mall Section 6 DA MEN Mall Section 7 Elite Pavilion Mall Section 8 Pavilion Tower Section 9 Investment Opportunities / Growth Strategies 2 1. Overview 3 PRIVATE AND CONFIDENTIAL Asset Portfolio Pavilion REIT consists of : − Pavilion Kuala Lumpur Mall, a 7-storey retail podium, together with a 3-storey retail office block and a 4-storey entertainment annex located at Jalan Bukit Bintang, Kuala Lumpur − Elite Pavilion Mall, a 10-storey retail mall seamlessly connected to
    [Show full text]
  • Padini Holdings Bhd Fundamental Company Report Including
    +44 20 8123 2220 [email protected] Padini Holdings Bhd Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis https://marketpublishers.com/r/P7776D28663BEN.html Date: September 2021 Pages: 50 Price: US$ 499.00 (Single User License) ID: P7776D28663BEN Abstracts Padini Holdings Bhd Fundamental Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily accessed format. The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Padini Holdings Bhd and its competitors. This provides our Clients with a clear understanding of Padini Holdings Bhd position in the Retail Industry. The report contains detailed information about Padini Holdings Bhd that gives an unrivalled in-depth knowledge about internal business-environment of the company: data about the owners, senior executives, locations, subsidiaries, markets, products, and company history. Another part of the report is a SWOT-analysis carried out for Padini Holdings Bhd. It involves specifying the objective of the company's business and identifies the different factors that are favorable and unfavorable to achieving that objective. SWOT-analysis helps to understand company’s strengths, weaknesses, opportunities, and possible threats against it. The Padini Holdings Bhd financial analysis covers the income statement and ratio trend-charts with balance sheets and cash flows presented on an annual and quarterly basis. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and company’s long- Padini Holdings Bhd Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis +44 20 8123 2220 [email protected] term solvency.
    [Show full text]
  • Padini Holdings
    Malaysia Company Guide Padini Holdings Version 8 | Bloomberg: PAD MK | Reuters: PDNI.KL Refer to important disclosures at the end of this report DBS Group Research . Equity 21 Feb 2017 Fashions with value, upgrade to BUY (Upgrade from hold) BUY Last Traded Price ( 20 Feb 2017): RM2.58 (KLCI : 1,712.58) Value emerged, upgrade to BUY. While we remain cautious that Price Target 12-mth: RM2.95 (14% upside) Padini Holdings’ (Padini) profit margin could come under Potential Catalyst: Stronger-than-expected topline growth pressure in 2HFY17 due to the weak ringgit, we upgrade our Where we differ: In line with consensus recommendation for Padini to BUY, given that value has Analyst emerged following its share price retracement by about 10% King Yoong CHEAH +60 32604 3908 [email protected] since our recent downgrade. What’s New Earnings came within expectations Strong quarter, within ours but above street expectations. The group reported strong 2QFY17 earnings of RM54m (65% y-o-y), GP margin could come under pressure in the driven by (1) 25% growth in revenue, and (2) higher GP margin coming quarters of 42% (vs 40% in 2QFY16) due to less product markdown during its special 4-day nationwide special sales. Its earnings But value has emerged due to share retracement accounted for 52%/57% of our/consensus full-year earnings forecasts. Upgrade to BUY with TP of RM2.95 GP margin could come under pressure due to weak ringgit. The group sources about 80-90% of its products from China, Price Relative through its sourcing agents. Although we understand that the correlations between currency movement and its GP margin is not so direct given that its sourcing agents could opt to absorb the currency difference, we maintain our view that margins could come under pressure in the 2HFY17 due to the persistent ringgit weakness since Nov 2016.
    [Show full text]
  • Padini Holdings (PAD MK)
    June 13, 2014 Padini Holdings (PAD MK) Share Price: MYR1.92 MCap (USD): 391M Malaysia Target Price: MYR2.35 (+22%) ADTV (USD): 2M Consumer Disc. BUY (Unchanged) Company Update Company Key Data | Still growing and expanding 52w high/low (MYR) 2.14/1.59 Expansion plans still intact – looking at about 7 PCS and 7 BO . 3m avg turnover (USDm) 1.6 outlets in FY15 versus 5 PCS and 7 BO in FY14. Free float (%) 48.4 . Company is now Shariah compliant and hopes to be back on Issued shares (m) 658 the SC’s list in Nov 2014 Market capitalization MYR1.3B RESEARCH . BUY - recent selldown provides buying opportunity. TP of Major shareholders: MYR2.35 on 14.8x CY14 PER, dividend yield attractive at 6%. -Yong Pang Chaun Holdings Sdn. Bhd. 43.7% -Somerset Capital Management LLP 3.5% -Public Mutual Bhd. 3.2% What’s New COMPANY Share Price Performance Same store sales growth (SSSG) has continued to hold up despite 2.40 170 stiff competition, with its Padini Concept Stores (PCS) registering 2.30 160 +2.9% SSSG in 9MFY14 and +19% for Brands Outlet (BO). However, 2.20 150 2.10 140 SSSG for its single brand stores (principally Vincci), contracted by 2.00 130 2.9%. Seed, Padini Authentics and Vincci face stiff competition but 1.90 120 Padini workwear and PDI are still faring well. 1.80 110 1.70 100 Separately, management has addressed its Shariah issue (the stock 1.60 90 1.50 80 was dropped from the Securities Commission’s (SC) Shariah list in Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 May 2014) and expects to be put back on the list in Nov 2014.
    [Show full text]
  • Up-And-Coming Attractions the Klang Valley Is Home to Some of the Largest Shopping Malls in the World and Is a Shopper's Haven
    ON THE COVER NEW MALL RISING Up-and-Coming Attractions The Klang Valley Is home to some of the largest shopping malls In the world and Is a shopper's haven. Malaysia Retailertak.es a closer look at what some of the newly opened malls have to offer and also how the stalwart malls are coping with new competition. By Tan Thiam Hock & Samuel Ngeow t has been said that shopping is Malaysians' favourite pastime. Newly Completed Retail Malls In 2014 IJudging from the bustling crowds at the popular malls here and the sheer numbers and sizes of the malls in the country (some of NAME LOCATION COMPLETION NLA (sqft) the largest in the world), the phrase does bear some truth. From the Main Place USJ 21 USJ, Subang Jaya 1Q2014 237,000 most luxurious designer labels such as Louis Vuitton and Chanel to the more affordable local brands like Padini and F.O.S, there's Encorp Strand Mall Kota Damansara 1Q2014 308,800 something for everyone when they are shopping here. With the Jaya Shopping Centre Sec 14, Petaling Jaya 1Q2014 300,000 impending entries of many new malls and the ongoing expansion Nu Sentral KL Sentral 2Q 2014 651,800 of retail spaces for the existing ones, the locals are spoilt for choice D'Puize Cyberjaya 3Q 2014 240,000 when it comes to their preferred weekend activity. Quill City Mall Jalan Sultan Ismail 4Q 2014 770,000 OVERVIEW OF THE RETAIL INDUSTRY IOI City Mall Putrajaya 4Q 2014 1,350,000 Tan Sri Datuk Eddy Chen Lok Loi, Source: WTWResearch President of Malaysia Shopping Malls Retail Developments Scheduled for Completion in 2015 Association (PPK Malaysia) says, "Generally, the mall industry is doing NAME NLA (sqft) well, given the rising population and Sunway Putra Mall 620,000 thelarger consumer base.
    [Show full text]
  • Assignment Padini Holdings Berhad 3-Latest
    PADINI HOLDING BERHAD 1.0 COMPANY PROFILE 1.1 Background of the company Padini is a Malaysian-domiciled investment-holding company headquartered in HicomGlenmarie Industrial Park, Shah Alam. Incorporated in 1971 as proprietorship under the trade name Hwayo Garments Manufacturers Company, Padini was initially engaged in the manufacture and wholesale of ladies wear. The company subsequently added men’s and children’s lines to its offerings when it established its first three brands from 1975 – 1987. In 1988, Padini discarded its role as wholesaler to take up the role of consignor. Thereafter, the first single-brand store distributing Seed was opened in 1992 in Sungei Wang Plaza, Kuala Lumpur. The company has nine labels in its family of brands and retail in 330 freestanding stores, franchised outlets and consignment counters in Malaysia and around the world. The company’s subsidiaries include Vincci Ladies’ Specialties Centre Sdn. Bhd., which is engaged in dealing of ladies’ shoes and accessories; Padini Corporation Sdn Bhd., Seed Corporation Sdn. Bhd., Yee Fong Hung (Malaysia) SendirianBerhad (Yee Fong Hung) and Padini International Limited, which is engaged in dealing of garments and ancillary products; Padini Dot Com Sdn. Bhd. (Padini Dot Com), which is engaged in provision of management services, and Mikihouse Children’s Wear Sdn. Bhd. (Mikihouse), which is engaged in dealing of children’s garments, maternity wear and accessories. Tizio was introduced to the public with the opening of its first outlet in Mid Valley Megamall in Nov 2012 and subsequently in Paradigm Mall on 23 May 2013. Like almost all of the Group’s Brands, Tizio was developed in-house by, and is registered to the group.
    [Show full text]
  • Padini Holdings
    CONSUMER PADINI HOLDINGS (PAD MK EQUITY, PDNI.KL) 4 Mar 2021 Navigating through uncertainties Company report HOLD AmInvestment Bank (Maintained) www.amequities.com.my 03-2036 2372 Rationale for report: Company update Investment Highlights Price RM2.88 Fair Value RM3.09 52-week High/Low RM3.17/RM1.78 We maintain our HOLD call on Padini Holdings (Padini) with an unchanged fair value of RM3.09/share with no Key Changes adjustment for ESG rating based on a 3-star rating as Fair value EPS appraised by us (Exhibit 3). Our fair value for Padini is based on a PE of 14x FY22F EPS. YE to Jun FY20 FY21F FY22F FY23F Padini hosted a results briefing yesterday and here are the Revenue (RM mil) 1,354.7 1,361.5 1,674.7 1,758.5 key takeaways: Core net profit (RM mil) 75.2 88.7 145.4 151.4 FD Core EPS (sen) 11.4 13.5 22.1 23.0 1. In terms of revenue composition, Padini saw its sales FD Core EPS growth (%) (53.1) 18.0 63.9 4.1 from its overseas businesses improve to 3.6% of Consensus Net Profit (RM mil) - 89.2 123.5 146.9 revenue in 1HFY21 from 3.2% in 1HFY20. This was DPS (sen) 7.5 6.7 11.0 11.5 PE (x) 25.8 21.9 13.3 12.8 mainly due to positive contribution from its four EV/EBITDA (x) 7.0 6.5 5.1 4.8 stores in Cambodia. The group’s Thailand operations Div yield (%) - - - - are still making losses.
    [Show full text]
  • Padini Holdings Strong Buy 5 April 2012 Consumer Bloomberg Ticker: PAD MK | Bursa Code: 7052
    Initiating Coverage PP7766/03/2013 (032116) Padini Holdings Strong Buy 5 April 2012 Consumer Bloomberg Ticker: PAD MK | Bursa Code: 7052 Analyst A multi-year re-rating story… Ian Wan [email protected] We initiate coverage on Padini Holdings (Padini) with a Strong Buy recommendation and a +603 2717 6694 target price of RM1.85 based on its 12-month forward P/E of 11x. We believe Padini deserves to trade at its 5-year historical peak valuation of 11x P/E as we anticipate the 12-month upside potential company to be re-rated by market due to (1) strong 3-year earnings CAGR of 20% driven by Target price 1.85 aggressive expansion in FY12, (2) diminishing investable universe within consumer sector, Current price (as at 4 Apr) 1.41 and (3) tremendous earnings potential if it expands aggressively into Indonesia market Capital upside (%) 31.2 and/or ventures into e-commerce in the future. Furthermore, Padini is also a good yield Net dividends (%) 4.3 play, offering attractive FY12-FY14 yields of 4.3%-5.7%! Total return (%) 35.5 Still plenty of room to grow… Padini is expanding aggressively in FY12 with 10 new stores opening which will increase Key stock information its gross retail floor space by 22.8% y-o-y. These include 6 Brands Outlets (BO), 3 Padini Syariah-compliant? Yes Market cap (RM m) 928 Concept Stores (PCS) and 1 free-standing store. Out of these 10 stores, 5 had already Issued shares (m) 658 opened while the remaining 5 are expected to be opened in 4QFY12.
    [Show full text]