Padini Holdings Berhad is an investment holding company. The Company, through its subsidiaries, manufactures and retails garments, shoes, ancillary products, and accessories.ADDRESS
3rd Floor NO. 17 Jalan Ipoh Kecil Kuala Lumpur, 50350 Malaysia
PHONE
60-03-4044-3235
WEBSITEwww.padini.com TECHNICAL ANALYSIS:
Share price is on uptrend.
Padini Holdings Berhad is a Malaysia-based investment holding company. The Company offers garments, shoes and fashion accessories under a
range of brands. The Company operates through five segments: Vincci Ladies' Specialties Centre Sdn. Bhd. (Vincci), Padini Corporation Sdn. Bhd.
(Padini Corporation), Seed Corporation Sdn. Bhd. (Seed), Yee Fong Hung (Malaysia) Sendirian Berhad (Yee Fong Hung) and Mikihouse Children's
Wear Sdn. Bhd. (Mikihouse). The Vincci segment offers brands, such as Tizio, Vincci and Vincci Accessories. The Padini Corporation segment offers
brands, such as Padini, Padini Authentics and PDI. The Seed segment offers brands, such as Seed and Seed Cafe. The Yee Fong Hung segment
offers brands, such as Brands Outlet and P&Co. The Mikihouse segment offers Miki Kids brand. It operates free-standing stores, consignment counters
and franchise stores. It exports products to the United Arab Emirates, Oman, Syria, Qatar, Bahrain, Pakistan, Egypt, Morocco, Kuwait and Thailand.
The score for Padini Holdings last changed from 7 to 8 on
01/07/18.
- The recent change in the Average Score was primarily due to
an improvement in the Earnings component score.
Padini Holdings currently has an Earnings Rating of 7, which is
significantly more bullish than the Apparel Retailers industry average
of 4.5. PADINI scores a bullish 7 or greater for two of three
component ratings.
- Over the past 90 days, the consensus price target for PADINI has
increased notably from 4.89 to 5.72, a gain of 17.0%.
- There have been 5 upward and 1 downward broker recommendation
changes for Padini Holdings over the past 120 days.
- Padini Holdings currently has a Fundamental Rating of 10, which is
significantly more bullish than the Specialty Retailers industry group
average of 4.8.
- The company's gross margin has been higher than its industry group
average for each of the past five years.
- The company's current ratio has been higher than its industry group
average for each of the past five years.
- The accruals ratio for PADINI is the lowest within its Specialty
Retailers industry group.
- Of the 17 firms within the Specialty Retailers industry group, Padini
Holdings is among 10 companies that pay a dividend. The stock's
dividend yield is currently 1.8%.
Macquarie Equities Research (MQ Research) initiates coverage on Malaysian fashion retailer Padini Holdings (Padini) with an Outperform call in its report released yesterday (27 Jun), based on strong growth in annual earnings coupled with cheap price/earnings to growth (PEG) valuation against its global peers. MQ Research added that Padini is a good proxy to a potential improvement in sentiment and growth in consumption among the low-middle income groups in Malaysia.
Initiating coverage with an OP rating and RM8.05 TP
13. Looking ahead, Padini intends to expand its retail network whenever good opportunities are presented. This includes the planned opening of six Padini Concept stores and six Brands Outlet stores in 2018. The management also intends to carry out refurbishments for at least one Padini Concept store and three Brands Outlet stores. In addition, the management has completed the incorporation of Padini (Cambodia) Co. Ltd on 2 August 2017. It intends to open new stores to sell apparels, shoes and accessories in Cambodia in the near future.
No DEBT:
Padini is a cash-producing business and doesn’t need to continually raise equity or debt to expand its business and reward its shareholders with dividends. As at 30 June 2017, Padini has RM416.9 million in cash reserves and very low debt-to-equity ratio of 0.03.
In summary, Padini Holdings has built a track record of increasing sales, profits and dividends to its shareholders over the last decade. With abundant cash reserves and a low debt-to-equity ratio, the company is in position to ride through economic uncertainties, remain competitive in the ever changing and evolving fashion retail industry.
