Padini

Industry observers opine the worst could be over as earnings for the company retail group’s fourth quarter ended June 30 2015 came in above market expectations.

Its management has indicatead that it is committed to a minumum 10 sen per share. Padini has a strong cash pile to continue rewarding shareholders. As at June 30 2015, the group was in a net cash position of rm98.13 million equivalent to 15 sen per share.
It is worth nothing that a large chunk of Padini’s shares are held by MD Yong via his private vehicle – the single largest shareholder with 43.7% stakes.

Where business operations are concerned, observers think Padini’s worse days could be over as margins stabilise and consumer sentiment recovers going forward. For FY2015, gross margins fell to 43% while net margins declined to 8.2%. In FY2014, Padini registered gross margins of 46% while net margins stood at 10.4%.

While SSSG expected to decline or even turn negative, observers opine it will be new stores that will generate sales growth.

Padini’s penetration into new markets could help to drive eanrings growth even if margins fail to recover. Besides that the group’s value for money Brands Outlet stores are benefiting from consumer down trading given current economic uncertainties.

It is possible that Brands Outlet will overtake that of Padini Concept Stores. Revenue from Brands Outlet came in on par with its higher end sister Padini Concept Stores while segmental profits overtook the latter in FY2015.

Looking ahead, a reovery in consumer sentiment will be positive for retailers like Padini.

Padini Holdings Bhd 7052

Padini is success with the brand Vincci, Vincci+, Vincci Accessories, Padini Authentics, PDI, Padini, Seed, Miki, and P&Co.

I think most of you are familiar with those brands especially girls~ :p
There is one thing I cannot understand, why girls need so much clothes and shoes.. -_-"

Based on year 2010 annual report, its domestic operation accounted for 91.3% of the group's consolidated revenues. But domestic operation contributed 89.0% at year 2009. There is a slight decrease on the oversea market shares.

Padini is a cash rich company, no major capex need to expand, the capex normally go for shop lot renovation only~

Profit margin is around 50% (this figure is improving since year 1999, from around 38% to 50% now)
Selling and distribution costs is around 24% to 28%
Administrative expenses is around 8.6% (this category is also improving from around 10% to 8.6% now)

The management is doing a good job until now, its finance is healthy also. At the moment, Padini is holding cash around 135 million with around 36 million in debt.
However the growth of revenue of Padini is much more depending on the growth of number of shop lot or merchants.

Three major shareholders are holding around 74.4% shares, this inclusive Icapital, one of the major shareholder which hold around 3.45%.

Current share price RM 5.40, latest 4 quarters EPS stood at 44.79 cents, which gives PE around 12.