Excel – http://1drv.ms/1eX6RCD
– Fair value/Marketing Timing
– 5Y DCF: 2.98 – 3.38
– Buy under: 2.51 – 2.85 (MOS: 37% – 45%)
– EY%: Buy under 2.00, sell above 2.80
– Looks like PADINI is currently undervalued and quite attrative.
– New 3 Brands Outlet stores and a Padini Concept store were opened in the current financial year. In the coming months, there are plans to add another 3 Brands Outlet stores and another 2 Padini Concept stores which would add upwards of 90k sq ft of retail floor space to >800k sq ft. In addition to the new store openings, we are positive on the changes made to merchandise development and pricing strategies, which would allow PADINI to capitalise on the Visit Malaysia Year 2014.
– Five out of the nine new stores in FY14 are located in Miri, Seremban and Langkawi. They will provide the group with new revenue stream from the less competitive markets in the second tier cities.
– Based on the growth analysis, PADINI has great potential to have higher net profit and owner earnings in FY14.
– I will consider to buy PADINI. May be my wife will buy it.
Latest Financial – Q2 2014 Financial Report (26 Feb 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1549673
At the time of writing, I did not own shares of PADINI.