Excel – http://1drv.ms/1nwyB7k
– Fair value/Marketing Timing
– 5Y DCF: 2.45 – 2.77
– Buy under: 2.03 – 2.29 (MOS: 17% – 27%)
– EY%: Buy under 1.86, sell above 2.18
– Looks like PADINI is currently undervalued and quite attractive.
– 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.
– For recent sector analysis, please read https://lcchong.files.wordpress.com/2014/03/apparels-the-busy-weekly-15032014.pdf
– My wife bought PADINI 2 weeks ago. PADINI will remain in my watch list because it is not part of my personal portfolio. I will help her to monitor PADINI.
Latest Financial – Q3 2014 Financial Report (28 May 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1638113
At the time of writing, I did not own shares of PADINI.