Padini 16.8.2017

Padini
16.8.2017

INCOME STATEMENT
Millions.
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Revenues …. 1,301 …. 978 …. 866 …. 790 …. 726
GProf …. 542 …. 422 …. 400 …. 369 …. 351
EBIT …. 179 …. 104 …. 118 …. 112 …. -
Int Exp …. 3 …. 2 …. 2 …. 2 …. 3
PBT …. 187 …. 112 …. 126 …. 118 …. 130
PAT …. 137 …. 80 …. 91 …. 85 …. 95
No of shr …. 658 …. 658 …. 658 …. 658 …. 658
EPS (Dil) …. 0.21 …. 0.12 …. 0.14 …. 0.13 …. 0.14


GP Marg …. 41.66% …. 43.15% …. 46.19% …. 46.71% …. 48.35%
PBT Marg …. 14.37% …. 11.45% …. 14.55% …. 14.94% …. 17.91%
NP Marg …. 10.53% …. 8.18% …. 10.51% …. 10.76% …. 13.09%
EBIT/Int …. 59.67 …. 52.00 …. 59.00 …. 56.00 …. #VALUE!



BALANCE SHEET
Thousands.
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
CA …. 349,719 …. 246,257 …. 171,243 …. 218,549 …. 139,998
NCA …. 450,136 …. 356,858 …. 397,647 …. 293,796 …. 345,401
TA …. 799,855 …. 603,115 …. 568,890 …. 512,345 …. 485,399


CL …. 311,987 …. 176,682 …. 158,825 …. 116,618 …. 120,541
NCL …. 18,912 …. 20,799 …. 22,401 …. 23,501 …. 25,445
TL …. 330,899 …. 197,481 …. 181,226 …. 140,119 …. 145,986
Eq …. 468,956 …. 405,634 …. 387,664 …. 372,226 …. 339,413
TL+Eq …. 799,855 …. 603,115 …. 568,890 …. 512,345 …. 485,399



Cash …. 349,719 …. 246,257 …. 171,243 …. 218,549 …. 139,998
ST Debt …. 106,611 …. 49,349 …. 37,193 …. 18,726 …. 31,218
LT Debt …. 9,644 …. 12,504 …. 15,014 …. 17,238 …. 19,554
Total Debt …. 116,255 …. 61,853 …. 52,207 …. 35,964 …. 50,772

Inventories …. 263,266 …. 168,931 …. 222,066 …. 143,838 …. 192,285
AR …. 18,020 …. 21,510 …. 22,710 …. 44,703 …. 43,926
AP …. 159,942 …. 94,082 …. 81,919 …. 69,445 …. 55,574


TD/Eq …. 24.8% …. 15.2% …. 13.5% …. 9.7% …. 15.0%
TD/TA …. 14.5% …. 10.3% …. 9.2% …. 7.0% …. 10.5%
TL/TA …. 41.4% …. 32.7% …. 31.9% …. 27.3% …. 30.1%

CR …. 1.12 …. 1.39 …. 1.08 …. 1.87 …. 1.16
QR …. 0.28 …. 0.44 …. -0.32 …. 0.64 …. -0.43



CE …. 837,587 …. 672,690 …. 581,308 …. 614,276 …. 504,856

Average of 2 years
CE (Avg) …. 755,139 …. 626,999 …. 597,792 …. 559,566 ….
TA (Avg) …. 701,485 …. 586,003 …. 540,618 …. 498,872 ….
Eq (Avg) …. 437,295 …. 396,649 …. 379,945 …. 355,820 ….






CASH FLOW STATEMENT
(thousand)
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Net Inc …. 186,665 …. 111,835 …. 125,719 …. 117,658 …. 129,721
D&A …. 34,940 …. 30,612 …. 23,630 …. 22,182 …. 20,972
FFO …. 187,616 …. 117,741 …. 120,902 …. 116,278 …. 130,260
CWC …. (9,681) …. 75,119 …. (66,744) …. 46,596 …. (53,455)
NetOCF …. 177,935 …. 192,860 …. 54,158 …. 162,874 …. 76,805

Capex …. (32,816) …. (43,225) …. (42,119) …. (16,399) …. (27,594)

FCF …. 147,096 …. 151,022 …. 12,530 …. 146,757 …. 49,969
Dividends …. (75,660) …. (65,791) …. (75,660) …. (52,633) …. (52,632)
RE …. 111,005 …. 46,044 …. 50,059 …. 65,025 …. 77,089


NetOCF/Net Inc …. 95.3% …. 172.5% …. 43.1% …. 138.4% …. 59.2%
FCF/Net Inc …. 78.8% …. 135.0% …. 10.0% …. 124.7% …. 38.5%
Capex/Net Inc …. 17.6% …. 38.7% …. 33.5% …. 13.9% …. 21.3%
Capex/NetOCF …. 18.4% …. 22.4% …. 77.8% …. 10.1% …. 35.9%
DPO ratio …. 40.5% …. 58.8% …. 60.2% …. 44.7% …. 40.6%
Capex/D&A …. 93.9% …. 141.2% …. 178.2% …. 73.9% …. 131.6%



VALUATION
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Share Price RM …. 2.63 …. 1.35 …. 1.89 …. 1.66 …. 2.33
Market cap (m) …. 1730.5 …. 888.3 …. 1243.6 …. 1092.3 …. 1533.1

ROCE …. 23.7% …. 16.6% …. 19.7% …. 20.0% ….
ROA …. 19.5% …. 13.7% …. 16.8% …. 17.0% ….
ROE …. 31.3% …. 20.2% …. 24.0% …. 23.9% ….

FCF/Revenues …. 11.3% …. 15.4% …. 1.4% …. 18.6% …. 6.9%

FCF/Mkt Cap …. 8.5% …. 17.0% …. 1.0% …. 13.4% …. 3.3%
DY …. 4.4% …. 7.4% …. 6.1% …. 4.8% …. 3.4%

Today's Price …. 4.16
Market cap (m) today …. 2737.28

Consumer Stocks on my radar screen

Carlsberg
Guinness
Nestle
Dutch Lady
Hup Seng Industries
Padini
Zhulian


Carlsberg

ROE 64.08%
EPS CAGR 5 Yrs 19.5%
DY High 5.2% - Low 3.6%
D/E 0.02
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 1584.78 m
LFY Earnings 191.63 m
Gross Margin 36.26%
Market Cap RM  4353.85 m
Shares (m) 305.75
Per Share price RM  14.24
P/E 22.7
DCA Strong


Guinness

ROE 54.62%
EPS CAGR 5 Yrs 13%
DY High 7.1% - Low 4.1%
D/E 0.53
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  1623.69 m
LFY Earnings 207.40 m
Gross Margin 33.70%
Market Cap  RM 5437.76 m
Shares (m) 302.10
Per Share price RM 18.00
P/E  26.2
DCA Strong


Nestle

ROE 67.27%
EPS CAGR 5 Yrs 11.6%
DY High 4.0% - Low 3.1%
D/E 0.13
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 4556.42  m
LFY Earnings  505.35 m
Gross Margin 34.09%
Market Cap  RM 14,252.91 m
Shares (m)  234.50
Per Share price RM  60.78
P/E 28.2
DCA Strong


Dutch Lady

ROE 57.08%
EPS CAGR 5 Yrs 21.2%
DY High 6.3% - Low 3.6%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  882.18 m
LFY Earnings 123.38  m
Gross Margin 58.18%
Market Cap  RM 3101.44 m
Shares (m)  64
Per Share price RM  48.46
P/E 25.1
DCA Strong


Hup Seng Industries

ROE 21.24%
EPS CAGR 5 Yrs 46.9%
DY High 11.0% - Low 7.3%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 247.82  m
LFY Earnings 32.54  m
Gross Margin 35.47%
Market Cap RM  414.00 m
Shares (m)  120.00
Per Share price RM  3.45
P/E  12.7


Padini

ROE 28.23%
EPS CAGR 5 Yrs 25%
DY High 4.9% - Low 2.9%
D/E 0.15
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  723.41 m
LFY Earnings  96.00 m
Gross Margin 48.19%
Market Cap RM 1236.87 m
Shares (m) 657.91
Per Share price RM 1.88
P/E 12.9


Zhulian

ROE 25.91%
EPS CAGR 5 Yrs 14.7%
DY High 8.7% - Low 5.4%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  450.43 m
LFY Earnings 117.09  m
Gross Margin 72.51%
Market Cap RM 1334.00 m
Shares (m) 460.00
Per Share price RM  2.90
P/E 11.4


DCA = durable competitive advantage

Padini - Return on Retained Earnings

Padini

(Figures are in sens)

Year		DPS		EPS		Retained EPS
2002		0.2		1		0.8
2003		0.5		1.6		1.1
2004		0.6		1		0.4
2005		1.1		2.6		1.5
2006		1.4		4.4		3
2007		2.2		4.8		2.6
2008		2.7		6.3		3.6
2009		2.7		7.5		4.8
2010		3		9.3		6.3
2011		4		11.5		7.5
Total		18.4		50		31.6
2002-2011
DPO				37%
EPS increase				10.50
Return on retained earnings				33%

Padini's inks 10-year deal with Singapore's FJ Benjamin

Published: Tuesday August 7, 2012 MYT 1:59:00 PM

KUALA LUMPUR: Padini Holdings Bhd's line of women's shoes and accessories under its Vincci label would be distributed in Indonesia under a 10-year deal.

Its unit Vincci Ladies' Specialties Centre Sdn Bhd had on Tuesday signed a master franchise agreement with FJ Benjamin (Singapore) Pte Ltd and PT Gilang Agung Persada of Jakarta.

Under the agreement, FJ Benjamin, through its associate PT Gilang Agung Persada, open 25 stories within five years in Indonesia.

The franchise would see FJ Benjamin distributing trendy and affordable VNC women's shoes and accessories in Indonesia.

VNC products are sold under the Vincci label in Malaysia and are produced by the Padini Group.

http://biz.thestar.com.my/news/story.asp?file=/2012/8/7/business/20120807135834&sec=business

Investor's Checklist: Consumer Services

Most consumer services concepts fail in the long run, so any investment in a company in the speculative or aggressive growth stage of the business life cycle needs to be monitored more closely than the average stock investment.

Beware of stocks that have already priced in lofty growth expectations.  You can make money if you get in early enough, but you can also lose your shirt on the stock's rapid downslide.

The sector is rife with low switching costs.  Companies that establish store loyalty or store dependence are very attractive.  Tiffany's is a good example; it faces limited competition in the retail jewelery market.

Make sure to compare inventory and payables turns to determine which retailers are superior operators.  Companies that know what their customers want and how to exploit their negotiating power are more likely to make solid bets in the sector.

Keep an eye on those off-balance sheet obligations.   Many retailers have little or no debt on the books, but their overall financial health might not be that good.

Look for a buying opportunity when a solid company releases poor monthly or quarterly sales numbers.  Many investors overreact to one month's worth of bad same-store sales results, and the reason might just be bad weather or an overly difficult comparison to the prior-year period.  Focus on the fundamentals of the business and not the emotion of the stock.

Companies also tend to move in tandem when news comes out about the economy.  Look for a chance to pick up shares of a great retailer when the entire sector falls - keep that watch list handy.  


Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey


Read also:
Investor's Checklist: A Guided Tour of the Market...

Investor's Checklist: Consumer Goods

Find companies that enjoy the cost advantages of manufacturing on a larger scale than most other competitors.  One related issue is whether the firm holds dominant market share in its categories.

Look for the firms that consistently launch successful new products - all the better if the firm is first to market with these innovations.

Check to see if the company is supporting its brand with consistent advertising.  If the firm constantly promotes its products with sale prices, it's depleting brand equity and just milking the brand for shorter-term gain.

Examine how well the firm is handling operating costs.  Occasional restructuring can help squeeze out efficiency gains and lower costs, but if the firm is regularly incurring restructuring costs and relying solely on this cost-cutting tactic to boost its business, tread carefully.

Because these mature firms generate so much free cash flow, it's important to make sure management is using it wisely.  How much of the cash is turned over to shareholders in the form of dividends or share repurchase agreements?

Keep in mind that investors may bid up a consumer goods stock during economic downturns, making the shares pricey relative to its fair value.  Look for buying opportunities when shares trade with a 20 percent to 30 percent margin of safety.  

Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey



Read also:
Investor's Checklist: A Guided Tour of the Market...

Padini

Padini
Announcement	Qtr	EPS	ttm-EPS	Price
Date	No	(Cents)	(Cent)	(RM)	PE	DY	P/NTA
30/05/2012	3	3.69	14.88	1.80	12.1	2.2%	3.53
28/02/2012	2	4.34	14.90	1.33	8.9	3.0%	2.66
29/11/2011	1	4.10	12.76	1.05	8.2	3.8%	2.23
26/08/2011	4	2.75	11.45	0.89	7.8	4.5%	2.07
30/05/2011	3	3.71	10.50	1.08	10.3	4.2%	2.57
25/02/2011	2	2.20	9.41	1.16	12.3	3.9%	2.87
29/11/2010	1	2.79	8.96	1.10	12.3	4.1%	2.86
26/08/2010	4	1.79	9.23	0.91	9.9	0.5%	2.46
27/05/2010	3	2.62	8.29	0.76	9.2	3.7%	2.07
25/02/2010	2	1.75	7.34	0.76	10.4	3.7%	2.22
25/11/2009	1	3.06	7.84	0.75	9.6	3.7%	2.21
27/08/2009	4	0.85	7.53	0.60	8.0	0.4%	1.94
28/05/2009	3	1.68	7.07	0.48	6.8	6.3%	1.53
26/02/2009	2	2.24	7.50	0.47	6.3	6.4%	1.59
26/11/2008	1	2.75	7.48	0.49	6.6	6.1%	1.72

Padini versus Dutch Lady (A Comparative Study)

	6.3.2012		5.3.2012
	Padini		Dutch Lady
Income Statement
	30/6/2011		31/12/2011
	RM (m)		RM (m)
Revenue	568.48		810.65
Gross Profit	290.80		304.47
Operating Profit	106.63		139.372
Financing costs	-1.573		-0.919
PBT	105.057		141.553
PAT	75.694		108.082
EPS (basic) sen	11.51		168.88
Balance Sheet
NCA	94.585		74.048
CA	349.754		324.465
Total Assets	444.339		398.513
Total Equity	282.677		259.154
NCL	23.715		4.051
CL	137.947		135.308
Total Liabilities	161.662		139.359
Total Eq + Liab	444.339		398.513
Net assets per share	0.430		4.05
Cash & Eq	138.622		193.143
LT Borrowings	22.151		0
ST Borrowings	24.948		0
Net Cash	91.523		193.143
Inventories	170.955		93.448
Trade receivables	39.433		36.713
Trade payables	93.94		121.831
Quick Ratio	1.30		1.71
Current Ratio	2.54		2.40
Cash flow statement
PBT	105.057		141.553
OPBCWC	129.019
Cash from Operations	60.017		188.290
Net CFO	-2.104		161.940
CFI	-2.276		-7.135
CFF	8.773		-47.319
Capex	-24.728		-10.882
FCF	-26.832		151.058
Dividends paid	-26.316		-46.400
DPS (sen)	4.00		72.5
No of ord shares (m)	657.91		64
Financial Ratios
Gross Profit Margin	51.16%		37.56%
Net Profit Margin	13.32%		13.33%
Asset Turnover	1.28		2.03
Financial Leverage	1.57		1.54
ROA	17.04%		27.12%
ROC	39.60%		163.73%
ROE	26.78%		41.71%
Valuation	6.3.2012		5.3.2012
Price	1.53		29.5
Market cap (m)	1006.60		1888.00
P/E	13.30		17.47
P/BV	3.56		7.29
P/FCF	-37.51		12.50
P/Div	38.25		40.69
DPO ratio	0.35		0.43
EY	7.52%		5.72%
FCF/P	-2.67%		8.00%
DY	2.61%		2.46%

Padini (At a Glance)

6.3.2012
Padini
Income Statement
	30/6/2011	30/6/2010	Absolute Chg	Change
Revenue	568.48	518.84	49.64	9.57%
Gross Profit	290.80	259.28	31.52	12.16%
Operating Profit	106.63	87.374	19.26	22.04%
Financing costs	-1.573	-1.094	-0.48	43.78%
PBT	105.057	86.28	18.78	21.76%
PAT	75.694	60.974	14.72	24.14%
EPS (basic) sen	11.51	9.27	2.24	24.16%
Balance Sheet
NCA	94.585	92.257	2.33	2.52%
CA	349.754	264.325	85.43	32.32%
Total Assets	444.339	356.582	87.76	24.61%
Total Equity	282.677	234.332	48.35	20.63%
NCL	23.715	10.899	12.82	117.59%
CL	137.947	111.351	26.60	23.88%
Total Liabilities	161.662	122.25	39.41	32.24%
Total Eq + Liab	444.339	356.582	87.76	24.61%
Net assets per share	0.430	0.356	0.07	20.63%
Cash & Eq	138.622	135.025	3.60	2.66%
LT Borrowings	22.151	10.125	12.03	118.78%
ST Borrowings	24.948	26.128	-1.18	-4.52%
Net Cash	91.523	98.772	-7.25	-7.34%
Inventories	170.955	76.554	94.40	123.31%
Trade receivables	39.433	32.561	6.87	21.11%
Trade payables	93.94	58.62	35.32	60.25%
Quick Ratio	1.30	1.69	-0.39	-23.14%
Current Ratio	2.54	2.37	0.16	6.81%
Cash flow statement
PBT	105.057	86.280	18.78	21.76%
OPBCWC	129.019	111.207	17.81	16.02%
Cash from Operations	60.017	137.997	-77.98	-56.51%
Net CFO	-2.104	93.513	-95.62	-102.25%
CFI	-2.276	-26.351	24.08	-91.36%
CFF	8.773	3.084	5.69	184.47%
Capex	-24.728	-25.690	0.96	-3.74%
FCF	-26.832	67.823	-94.66	-139.56%
Dividends paid	-26.316	-29.606	3.29	-11.11%
DPS (sen)	4.00	4.50	-0.50	-11.11%
No of ord shares (m)	657.91	657.91	0.00	0.00%
Financial Ratios
Net Profit Margin	13.32%	11.75%	1.56%	13.30%
Asset Turnover	1.28	1.46	-0.18	-12.07%
Financial Leverage	1.57	1.52	0.05	3.30%
ROA	17.04%	17.10%	-0.06%	-0.38%
ROC	39.60%	44.98%	-5.38%	-11.96%
ROE	26.78%	26.02%	0.76%	2.91%
Valuation	6.3.2012	4.3.2011
Price	1.53	1.09	0.44	40.37%
Market cap (m)	1006.60	717.12	289.48	40.37%
P/E	13.30	11.76	1.54	13.07%
P/BV	3.56	3.06	0.50	16.36%
P/FCF	-37.51	10.57	-48.09	-454.80%
P/Div	38.25	24.22	14.03	57.92%
DPO ratio	0.35	0.49	-0.14	-28.40%
EY	7.52%	8.50%	-0.98%	-11.56%
FCF/P	-2.67%	9.46%	-12.12%	-128.18%
DY	2.61%	4.13%	-1.51%	-36.67%

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
29-Nov-11		30-Jun-12		1	30-Sep-11		178,115		26,946		4.10		-
26-Aug-11		30-Jun-11		4	30-Jun-11		132,146		18,076		2.75		-
30-May-11		30-Jun-11		3	31-Mar-11		147,960		24,386		3.71		-
25-Feb-11		30-Jun-11		2	31-Dec-10		141,814		14,484		2.20		-

ttm-EPS  12.76 sen
Price  RM 1.53
PE (ttm)  12x

Recession-proof fashion retailers do better than others during a bear market

Recession-proof fashion retailers do better than others during a bear market
Written by Lim Siew May of theedgemalaysia.com
Tuesday, 06 December 2011 09:43


KUALA LUMPUR: In Malaysia, only three home-grown fashion brands — Padini Holdings Bhd, Bonia Corp Bhd and Voir Holdings Bhd — are listed on Bursa Malaysia, but they have been surprisingly resilient. Each remained profitable during the 2008 financial crisis.

Padini Holdings Bhd, which is widely covered by analysts, was the first retailer to list, doing so in 1998. It retails fashionwear and accessories through its brands — Seed, Vincci, P&Co, PDI, Padini Authentics Miki and Padini.

In early November, it boasted the highest market capitalisation [among the three] of RM657.91 million, and profits have been growing consistently y-o-y from 2001 to 2010. It has consistently paid out dividends of at least 30% of its net income, and for FY2011, it is expected to distribute RM26.3 million (34.7%) out of its net profit of RM75.7 million.


The market capitalisation of Bonia Corp Bhd, which retails branded leatherwear, footwear as well as men’s apparel and accessories, is about half of Padini’s at RM328.56 million. It made a net profit of RM33.55 million for FY2010. The company owns the Bonia, Sembonia and Carlo Rino brands and the licence for international labels including Santa Barbara Polo and Valentino Rudy.


Voir Holdings Bhd has the smallest market capitalisation of RM60.60 million. The company owns brands such as VOIR, Applemints and SODA as well as licensed international brand Diadora. Besides selling women’s apparel, shoes and accessories, the company also designs and sells clothes for men and children. It made a net profit of RM7.7 million for FY2010.


Compared with luxury fashion houses listed in Hong Kong, local fashion stocks are much cheaper. The three companies are trading at price-earning ratios (PERs) of between 8.42 times and 8.75 times. In comparison, Italian luxury brand Prada SpA, which listed in Hong Kong in June, is trading at 28 times.

Recession-proof?


The possibility of a double-dip recession for the global economy is certainly alarming but the stock market will offer great bargains. Certain resilient industries do better than others during a bear market.

There are two opposing schools of thought on the prospects of non-utilitarian stocks such as fashion during a recession. On one hand, branded wear can be seen as luxury, not a basic need, which is eliminated from a tightened budget.

The opposing view is that people tend to seek an escape from hard times and are more likely to indulge in shopping. The latter helps to explain the resilience of Padini, Voir and Bonia during the last financial crisis.


An analyst, who requests anonymity, is sanguine about the local fashion stocks. “Malaysians love sales. Fashion companies can spur customer spending via sales and promotions, even though they do incur marketing costs. I believe that our middle-class fashion range will fare better than high-end fashion stocks in Hong Kong, given their affordability.”


A consumer-sector analyst, however, is cautious: “Fashion is not a staple. I believe the sector will be affected by the current conditions in the global economy. People will hold back during uncertain times.”
Here are ways to evaluate a solid fashion stock, regardless of whether we will see a global.

Branding counts


Branding is said to be the most important component of a fashion retailer. “Everyone has heard of Padini. It is available at almost every retail outlets across the Klang Valley, and people usually prefer to stick to an established brand,” says the first analyst.

“Padini offers a wide range of products for various market segments, and they are affordably priced. When a fresh graduate needs to buy working clothes, he buys from Padini instead of foreign fashion brands such as Zara, which costs 50% more.”


Is the company actively growing its brand? This is reflected by mergers and acquisitions as well as decisions to spend 2% to 3% of its revenue on marketing initiatives and/or aggressive openings of more outlets. “Organic growth will not result in a premium valuation for fashion stocks,” says the analyst.


A HwangDBS Vickers Research report indicates that there is a correlation between a newly opened store and the company’s revenue stream. For instance, when Padini expanded its retail space by more than 50%, or 143,955 sq ft, in 2008.

Padini is setting its sights on rural areas like Sabah, where there is enhanced purchasing power. The group has started selling its affordably priced garments in the Brands Outlet in Suria Sabah in Kota Kinabalu, 1st Avenue Mall in Penang, as well as 1Borneo Shopping Mall and 1 Multi-Concept Store in Sabah.

“Residents don’t really have access to swanky and established malls. I believe Padini should perform relatively well there,” says the analyst. Brands Outlet, a Padini standalone store, has been instrumental in driving the company’s revenue growth, contributing a compounded annual growth rate of 85% since its debut in 2007, says the HwangDBS Vickers Research report.


Starting a standalone store is also a good move for the fashion company. “When you move beyond [renting space in a department store], you will have more space and better control over your operations. And if your brand is the anchor tenant, you can probably negotiate for favourable rental terms,” says the consumer-sector analyst.

Increasing same-store sales


Same-store sales are used in the retail industry to reflect the difference in revenue generated by the retail chain’s existing outlets over a certain period of time. This statistic differentiates between sales generated from new stores and those from existing stores.

“This metric shows the organic growth of a store. New outlets usually reach their peaks after three or four years, then you won’t see fantastic double-digit growth,” says the analyst.

Growth of same-store sales reflects the management’s acumen in predicting fashion trends while the reverse signifies inaccurate expectations or a saturated market.


Unfortunately, growth figures are not readily accessible to retail investors, although analyst’s reports or news reports may feature them. To compensate, evaluate the company’s financial performance.

“It all boils down to the company’s ability to give its customers what they want. Look at the big picture. You can assess its ability to meet customers’ demand through the sales figures in the financial statements. You can also go to the stores and observe the foot traffic,” suggests the analyst.



Expect months of lower sales. According to HwangDBS Vickers Research’s report, Padini sees lower sales during non-festive seasons, such as in 2Q2011. However, the report explains that this is a common characteristic of the retail industry.

Stocks and threats



Holding a high volume of inventory for a long time is not a good sign for a fashion retailer. Inventory takes up storage space and affects liquidity. High inventory may also compel a company to significantly mark down its out-of-season stocks, leading to compressed margins.


To cater for festive celebrations such as Christmas and Chinese New Year, there will be a surge in inventory, the analyst says. “The inventory volume depends heavily on the management’s view. If it takes a sanguine view of the economy, it will increase stocks accordingly.



“However, if a great deal of the inventory in December does not translate into sales by March or April, it can mean a weak quarterly financial performance for the company.”



Rising raw-material (such as cotton) costs and the minimum wage hike in China are some of the key threats facing fashion retailers around the world. Gross margin, which measures the percentage of each ringgit of revenue retained as gross profit, is used to evaluate the management’s ability to manage cost.

The higher it is, the more the company is able to retain each ringgit of revenue to meet other business costs and obligations. A reduced gross margin can be a result of plunging revenue and/or increased business costs — all of which impact earnings.


http://www.theedgemalaysia.com/personal-finance/197332-malaysians-love-shopping-so-recession-proof-fashion-retailers-do-better-than-others-during-a-bear-market.html

Padini

Company Name	:	PADINI HOLDINGS BERHAD
Stock Name	:	PADINI
Date Announced	:	26/08/2011

Financial Year End	:	30/06/2011
Quarter	:	4
Quarterly report for the financial period ended	:	30/06/2011
The figures	:	have not been audited

Converted attachment :

Please attach the full Quarterly Report here:

PHB_FY11_Q4_Explanatory_Notes_to_Accounts.doc
PHB FY11 Q4_Interim Financial Statements 30 June 2011.xls

Currency	:	Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION

30/06/2011

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/06/2011	30/06/2010	30/06/2011	30/06/2010
		$$'000	$$'000	$$'000	$$'000
1	Revenue	132,146	114,389	558,561	522,949
2	Profit/(loss) before tax	25,363	18,817	104,632	86,280
3	Profit/(loss) for the period	18,076	12,041	75,295	60,974
4	Profit/(loss) attributable to ordinary equity holders of the parent	18,076	12,041	75,295	60,974
5	Basic earnings/(loss) per share (Subunit)	2.75	1.83	11.44	9.27
6	Proposed/Declared dividend per share (Subunit)	2.00	3.00	4.00	4.50
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	0.4300		0.3600

Remarks :

Note that the figures reported for item 6 for the 3 months and the 12 months ended 30 June 2010 respectively have been adjusted for a share split completed in January 2011 12 Months ending 30.6.2011 Annual audited account Income statement Revenue  568.476m Gross profit   290.804m Profit from operations  106.630m PBT 105.057m PAT  75.694m Finance costs (1.573m) Taxation (29.363m) EPS of RM 0.10 each (sen) -Basic  11.51 sen Balance Sheet NCA  94.585m CA  349.754m TOTAL ASSETS  444.339m TOTAL EQUITY  282.677m NCL  23.715m CL  137.947m TOTAL LIABILITIES  161.662m TOTAL EQUITY AND LIABILITIES  444.339m Net asset value per share  RM 0.43 Inventories  170.955m Receivables  39.433m Payables  93.940m Deposits, cash and bank balances  138.622m LT borrowings  22.151m ST borrowings  24.948m Cash flow statement PBT  105.057m Operating profit before working capital changes  129.019m Cash generated from operations after working capital changes  60.017m Net cash (used in)/generated from operating activities  (2.104m) Net cash used in investing activities  (2.276m) Net cash generated from financing activities  8.773m Depreciation of PPE  21.864m Inventories written down to net realisable value 1.983m Proceeds from disposal of financial assets at fair value through profit or loss  21.106m Purchase of PPE (24.728m) Dividends 30.6.2011  (26.316m) 30.6.2010  (29.606m) Shares Number of shares in issue as at 1 July 2011  131.582m Effect of share split  526.328m The weighted average number of ordinary shares in issue:  657.910m Share split was completed on 6.1.2011. There were no shares in issuance which would have a dilutive effect on the earnings per share of the Group.

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
26-Aug-11		30-Jun-11		4	30-Jun-11		132,146		18,076		2.75		-
30-May-11		30-Jun-11		3	31-Mar-11		147,960		24,386		3.71		-
25-Feb-11		30-Jun-11		2	31-Dec-10		141,814		14,484		11.01#		2.203#
29-Nov-10		30-Jun-11		1	30-Sep-10		136,641		18,349		13.95#		2.791#

#EPS adjusted for share split

ttm-EPS  11.45 sen

Price RM 1.08

Trailing PE  9.4x

Share Price Performance
	High Low Prices 1 Month 1.080   (28-Nov-11) 0.985   (11-Nov-11) Prices 3 Months 1.110   (13-Oct-11) 0.820   (26-Sep-11) Prices 12 Months 5.560   (29-Dec-10) 0.820   (26-Sep-11) Volume 12 Months 31,695   (14-Jun-11) 60   (29-Nov-10)

Padini Holdings Berhad Company Snapshot
Business Description:
Padini Holdings Berhad operates in the Women's clothing stores sector. Padini Holdings Berhad is a Malaysia-based investment holding company. Through its subsidiaries, the Company acts as dealers of ladies' shoes and accessories; acts as dealers of garments and ancillary products; acts as dealers of children's garments, maternity wear and accessories, and provision of management services. During the fiscal year ended June 30, 2010 (fiscal 2010), the Company had a total of 137 stores-within-store. In fiscal 2010, the Company's subsidiaries were Vincci Ladies' Specialties Centre Sdn. Bhd., Padini Corporation Sdn. Bhd., Seed Corporation Sdn. Bhd., Yee Fong Hung (Malaysia) Sendirian Berhad, Mikihouse Children's Wear Sdn. Bhd., Padini Dot Com Sdn. Bhd., Padini International Limited, Vincci Holdings Sdn. Bhd. and The New World Garment Manufacturers Sdn. Bhd.


Stock Data: Recent Stock Performance:

Current Price (11/18/2011): 1.03
(Figures in Malaysian Ringgits)
1 Week 2.0% 13 Weeks -1.0%

4 Weeks 9.6% 52 Weeks -3.2%

Padini Holdings Berhad Key Data:

2011 Sales 568,476,000
(Year Ending Jan 2012).
Employees: 1,762
Market Cap: 677,646,785
Shares Outstanding: 657,909,500
Closely Held Shares: 472,861,460



23.11.2011

Padini  1.030
PE 8.96x
DY 3.88%
Market cap  RM 677.6