Tuesday, 21 February 2017

Padini 2Q net profit up 64.7%, pays 2.5 sen dividend

Author: moneyKing | Publish Date: 20 Feb 2017, 8:00 PM

By Chester Tay / theedgemarkets.com | February 20, 2017 : 6:33 PM MYT

KUALA LUMPUR (Feb 20): Padini Holdings Bhd's net profit jumped 64.7% to RM54.47 million or 8.28 sen a share in its second financial quarter ended Dec 31, 2016 (2QFY17) from RM33.07 million or 5.03 sen a share a year ago, on improved gross profit margins as there were less markdowns during the quarter under review.

Revenue for 2QFY17 grew 25.4% to RM426.65 million from RM340.38 million in 2QFY16.

The group also declared a third interim dividend of 2.5 sen per share for the financial year ending June 30, 2017 (FY17), payable on March 27.

In a filing with Bursa Malaysia today, Padini attributed the increased revenue to positive same store sales growth achieved, coupled with the eight Brands Outlet stores and five Padini Concept Stores that were opened after 2QFY16.

"Although there was also a 20% (RM18.3 million) increase in operating expenses that was mainly contributed by the increase from rentals and staff salaries for the new stores, the increase in revenue and the improvement in gross margins sufficiently covered for it," said Padini.

"For the quarter under review, the group had managed to improve its efficiencies, having achieved a higher growth in revenues as compared to the growth in operating expenses in spite of the many challenges faced. That said, we note that it was also a historically good quarter with the month long year-end school holidays and the cheer of the Christmas festivities," it added.

For the first half of FY17 (1HFY17), the group's net profit increased by 28% to RM83.09 million or 12.63 sen a share from RM64.9 million or 9.86 sen a share a year ago, while revenue rose 20.8% to RM736.68 million in 1HFY17 from RM609.95 million in 1HFY16.

"The group has concluded the first half of the financial year with a good set of results despite the prevailing challenges of unstable ringgit, rising costs of goods and operations coupled with the current economic situation.

"As the group perseveres on with its stance in continuing to provide value for money, the second half of the financial year will continue to be very challenging but the group is confident in turning in another profitable financial year," said Padini.

Padini's share price closed unchanged at RM2.58 today, giving it a market capitalisation of RM1.7 billion.


Friday, 10 February 2017

An academic professor who made millions from investing.

Horsky spent almost four decades at the University of Rochester’s Simon Business School, where he became a renowned scholar in quantitative marketing. He researched Internet startup companies, particularly in Israel, where he once lived. He lost money in 17 companies he invested in, running up credit-card debt and taking a second mortgage, according to the memo from his lawyers. In 2000, he invested in a British company through a Swiss account, sticking with the firm even as he ran up $350,000 in debts, often using margin loans.
In 2005, shares in the company began to take off, and by 2008, his holdings were worth $80 million after a second firm bought the company. He then reinvested in the second company, and his assets grew to $200 million by 2014. Even as he hid those assets, “he lived his modest life as a university professor,” according to his attorneys.

Saturday, 4 February 2017

Quantitative versus Qualitative Analysis. Lessons from Isaac Newton's South Sea's debacle.

Isaac Newton’s South Seas debacle is typically told as a parable of the dangers of market manias, which can consume even the brightest of investors. 

That is true. However, Newton’s South Seas adventure also illustrates another, less commonly acknowledged point: 

1.  Many critical investment questions cannot be solved by math. 

2.  And devoting too much attention to matters quantitative, while giving insufficient attention to issues such as judgment and data quality, can be outright harmful to portfolio results.