9MFY15: Within expectation

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: JF APEX

Price Call: HOLD

Target Price: 1.57

Padini - Expansion to continue in FY15

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.26

Padini Holdings Berhad-Growing dividends through Brands Outlets

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.26

Padini - Value is emerging

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 1.80

PADINI - FY14: Generous dividend payout

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: JF APEX

Price Call: BUY

Target Price: 1.87

Padini - Pushing ahead while strategically tackling the competition

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 1.80

Padini - Local-centric to retain mkt share

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 1.80

Stock Overview -PADINI- 4 April 2012

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: JUPITER

Price Call: BUY

Target Price: 1.57

PADINI ( 7052 : 1.42 ) : Targeting 1.57

Description

Resistance : 1.57
Support : 1.37

RSI of 53
RSI is neutral

STOCHASTIC
It is on an upswing

TREND INDICATOR

Comment
The current rebound is heading for 1.57. A tight stop loss should be placed at 1.37

Trading Strategy
Buy. Stop loss is at 1.37

Source:Jupiter Securities Research 04 April 2012

Padini (BUY, FV RM1.80, Last price RM1.45)

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: OSK

Price Call: BUY

Target Price: 1.80

We recently had a follow-up visit to Padini, which is one ofour Top Buys for 2012. We continue to like the stock's resilient performanceamid an increasingly turbulent operating environment. Despite the volatility incotton prices and intense competition in the retail space, we remain confidentthat the company's high inventory and wider retail network relative to itspeers will hold it in good stead. Maintain BUY, with a FV of RM1.80, based on14x FY12 EPS.

Gaining prominence.After providing 3 Good reasons (Good track record, Good growth story and Goodpricing) why investors should like Padini in our previous report, the shareprice has rallied by a strong 13.3% to RM1.45 in just one month. Although the volatilityin cotton prices and entry of new competitors might affect garment retailers ingeneral, we continue to believe that Padini will stand strong amid the toughenvironment given its high inventory level and wide network of outlets versusits peers.

Unfazed by thechallenges ahead.  From a macroperspective, India's cotton export ban will definitely affect textile andgarment retailers but we believe Padini will be able to weather the storm inview of its high level of inventory and cash pile. The entry of big overseasretailers such as Top Shop, Zara, MNG, Cotton On and Uniqlo in recent years hascertainly raised the bar for local garment retailers. Another fashion retailer,Hennes & Mauritz's (H&M), will also open its first store in Malaysiathis year. We think that Padini's strong  retail network and widecustomer base will continue to support its growth, although the competition isbecoming tougher.

Spreading its wingsoverseas.  FJ Benjamin Holdings, anindustry leader in brand building and management, and the development of retailand distribution networks, has approached Padini  with the view to  franchising the 'Vincci' brand  (under the brand name of 'VNC') in Indonesia.The VNC franchise stores in Indonesia have been languishing  due topricing problems  relating to a  luxury tax on its  products. The discussions are still at theearly stage but if the deal goes through, it would see Padini making asignificant breakthrough in expanding overseas. Similarly, the group is also inthe midst of revamping its franchisee model in Thailand.

Maintain BUY.Going forward, the group aims to introduce apparel based on overseas styles andfashion at a faster pace to Malaysians by ramping up its efficiency and come upwith  new garments in 3 to  4 weeks. Maintain BUY, with  the stock's fair value unchanged at RM1.80.

Source: OSK188

Padini: Maintain Buy - India lifts cotton export ban

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 1.70

Joining the billion-ringgit club. India's on-again, off-again cotton export ban is a small hiccup which has not affected Padini. We maintain our Buy call and TP of RM1.70 based on 12x CY12 PER. The group has evolved into a stock with a market cap of over RM1b compared to just RM690m when we initiated coverage in July 2011. The 12-month average daily trading volume has also improved to 1.2m shares vs. just 0.7m in July 2011. Trading at 11.2x calendarised 2012 earnings, we expect its valuation gap vis-''-vis peers to continue narrowing.


Maybank Research 13 March 2012

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PADINI - Domestic retail champ

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 1.75

Padini; Buy; RM1.52
Price Target: RM1.75; PAD MK

Brands Outlets to drive growth. Indonesian franchise agreement with experienced retail player a potential wild card. FY12-14F earnings raised 6-9%; higher RM1.75 TP.

Source: HwangDBS Research 12 March 2012

Stock Overview - PADINI - 7 Mar 2012

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: JUPITER

Price Call: BUY

Target Price: 1.35

PADINI ( 7052 : 1.48 ) : Stop loss 1.35

Description

Resistance : 1.83
Support : 1.35

RSI of 78
RSI is overbought

STOCHASTIC
It riding on an upswing

TREND INDICATOR

Comment
The current uptrend has an upside of 1.83. A tight stop loss should be placed at 1.35

Trading Strategy
Buy. Stop loss is at 1.35

Source: Jupiter Securities Research 7 March 2012

PADINI - Selling like hotcakes

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 1.45

Padini Holdings; Buy; RM1.33
Price Target: RM1.45 (Prev RM1.40); PAD MK

6MFY12 earnings beat expectations; declares 2sen net DPS, implying 46% quarterly payout. Brands Outlets to drive FY12-14F growth, boosted by mega sales; FY12-14F earnings nudged up 3-4%. Maintain Buy; TP nudged up to RM1.45.

Source: HwangDBS Research 29 Feb 2012

Padini Holdings: Maintain Buy - A strong FY12 shaping up

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 1.70

Above expectations. Padini's net profit of RM28.6m for 2QFY12 (+97% YoY, +6% QoQ) was above our expectations, making up 35% of our full-year forecast. Cumulatively, 1HFY12 net profit of RM55.5m (+69% YoY) accounted for 67% of our estimates for FY12. We revise our earnings estimates for FY12 and FY13 upwards by 5-6% p.a. following the impressive results and consequently raise our TP to RM1.70 (+6%), based on CY12 PER target of 12x (unchanged).

Maybank Research 29 Feb 2012

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Padini Holdings: Maintain Buy - Growth drivers very much intact

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 1.60

New stores and BOs drive growth. Brands Outlet (BO) sales is continuing its run at a pace of more than 25% pa, and already accounts for 16% of total sales (as at end-FY11). Double-digit growth in BO sales is expected to persist, while the addition of 10 new stores in FY12 provides further impetus for sales momentum growth over the next two years. We continue to like Padini for its decent valuations (2012 PER of 9.6x), strong balance sheet (net cash) and the reputable brands in its portfolio. Maintain Buy with a raised TP of RM1.60.

Maybank Research 20 Feb 2012

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In Good Hands

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: OSK

Price Call: BUY

Target Price: 1.80

Padini Holdings Berhad (Buy): Strong earnings momentum

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 1.16

Excellent growth. Padini's 1QFY12 earnings were strong, with net profit of RM27m up 47% YoY (+49% QoQ). Although above our expectations (1Q is typically a strong quarter), we maintain our forecasts on anticipation that sales could moderate into 2HFY12 on the back of slower domestic consumption. For its strong retail presence and increasingly resilient earnings model through its Brands Outlets, Padini remains a Buy with an unchanged TP of RM1.16 (CY12 PER of 9.2x).

Maybank research (30 November 2011)

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Padini rated a 'buy', stock jumps

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 1.30

Padini Holdings Bhd, a Malaysian garment market and retailer, rose 1.9 per cent in Kuala Lumpur trading after being rated a new "buy" at Maybank Investment Bank Bhd with a share estimate of RM1.30.

The stock climbed to RM1.07, set for its highest close since July 8. -- Bloomberg

PADINI - Padini up in early trade

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD
Research House: INTER PACIFIC

KUALA LUMPUR: PADINI HOLDINGS BHD [] shares rose ''in early trade on Tuesday, May 31 after it posted stronger earnings in the third quarter ended March 31, 2011.

At 9.15am, Padini was up five sen to RM1.13 with 45,000 shares traded.

Inter-Pacific Research Sdn Bhd upgraded Padini to Outperform with its target price raised to RM1.21 (previously RM1.06) as it brought its valuation forward to FY12's EPS of 12.1sen ascribed to a PER of 10 times.

'We like Padini as it was able to avoid margins compression despite unfavorable raw material prices,' it said in a note May 31.

PADINI - Consumer sector still positive for 2011

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD
Research House: BIMB

Consumer sector
Recommend overweight: Consumer stocks under our coverage, Aeon, Padini, Parkson and KFC produced performances in line with our expectations, with earnings coming in within our full-year estimates. The good performances were mainly driven by: 1) a convincing economic recovery; 2) improving consumer sentiment; 3) seasonal spike in festival spending (Chinese New Year, Hari Raya, school holidays and other public holidays); 4) capacity-expansion plans; 5) operational efficiencies (especially for Aeon and Parkson); and 6) favourable exchange rate movements for Chinese renminbi and Vietnamese dong against the ringgit in the case of Parkson.

Aeon opened two new stores last year. The expansion throughout the year has pushed up AEON's 9MFY10 revenue and net profit by 5% and 56% year-on-year. In 2011, AEON will invest RM200 million to open its 28th store in Rawang, which is expected to be completed within a year. Furthermore, another one or two new stores will be opened in 2011, in the northern part of Peninsular Malaysia, either in Penang, Sungai Petani or Ipoh.

Padini has been aggressively growing with seven new stores in 2010 to bring its total outlets to 233 (including consignment stores) in Malaysia and 97 franchise and dealers' stores overseas. The company is expected to continuously spread its wings, with annual capex of RM20 million. In addition to that, Padini is also aiming to expand its brands outlets business (selling other brands) and is currently working on the expansion efforts to open two more outlets in Kota Baru and Setapak.

As for Parkson, the group has been aggressively leading its retail peers in its expansion drives with eight new stores in Malaysia, China and Vietnam. For 2011, it aims to open five stores in China and one or two stores in Malaysia and Vietnam, which would bring a total of at least 95 stores by year-end. For that, some RM200 million is expected to be spent this year.

We are positive about the retail players' expansion drives as this strategy is the key to spur strong growth in revenue and earnings. This is also in tandem with improving consumer sentiment on the back of positive economic growth domestically and in Asia.

KFC plans to continuously expand its restaurants in 2011. It has said it will open 30 new KFC restaurants, 25 Ayamas outlets and two to three RasaMas restaurants locally. KFC also plans to increase the number of its restaurants overseas. There will be one or two new restaurants opened in Brunei and Singapore. Meanwhile, in India, KFC expects to open more restaurants to increase its total number of outlets to 17 by end-2011.

In tandem with the strong economic growth (GDP growth for 3QFY10 of 5.3% and 2011F of 5.7%), consumer sentiment in Malaysia has been showing an improvement, reaching a two-year high at 115.8 points in September. We expect rising consumer confidence to continue in tandem with the positive economic growth, coupled with additional initiatives planned by the government to raise disposable income and spur domestic spending in Budget 2011 .

Therefore, we expect double-digit earnings growth for the companies under our coverage in FY11.

The prices of consumer goods have been continually on the uptrend driven by higher commodity prices globally. The strong surge in input prices over a short period will eventually impact consumer spending as inflation creeps up. For instance, consumer price index rose from 111.7 in January 2009 to 115 in November 2010.

Additionally, the government's intention to eventually remove most subsidies under the Economic Transformation Programme will hit consumer confidence and hence, spending, should disposable income not grow concurrently.

We are 'overweight' on the consumer sector with three 'buy' calls out of four stocks under our coverage, to be supported by the expected double-digit earnings growth in FY2011 and FY2012. We recommend a 'buy' call on Aeon (TP: RM7.30), and Parkson (TP: RM7.57), 'outperform' call on Padini (TP: RM1.22), and maintain our 'neutral' call on KFC (TP: RM3.97). ' BIMB Securities Research, Jan 24


This article appeared in The Edge Financial Daily, January 25, 2011.