[%eMdW%]
Research by Apex
Hold - TP RM3.51

"Lukewarm quarter"

• PADINI 4QFY24 core net profit of RM22.8m (-60.8% yoy and -50.3% qoq) came below ours and consensus expectations, constituting 89% and 91% of forecast respectively, impacted by higher depreciation and staff costs along with decline in GP margin from 39% to 36%.
• Kept our earnings forecast unchanged for FY25F and introduced FY26F core net profit at RM202.7m (+7.1% yoy) on gradual improvement in SSSG.
• Downgrade our recommendation to HOLD, with lower target price of RM3.51, based on lower P/E multiple of 11.4x for the FY26F EPS of 31.0 sen.

Analyst:
Chelsea Chew
[%qkyf%]

$KLSE-PADINI
Research by Apex
Hold - TP RM3.51

"Lukewarm quarter"

• PADINI 4QFY24 core net profit of RM22.8m (-60.8% yoy and -50.3% qoq) came below ours and consensus expectations, constituting 89% and 91% of forecast respectively, impacted by higher depreciation and staff costs along with decline in GP margin from 39% to 36%.
• Kept our earnings forecast unchanged for FY25F and introduced FY26F core net profit at RM202.7m (+7.1% yoy) on gradual improvement in SSSG.
• Downgrade our recommendation to HOLD, with lower target price of RM3.51, based on lower P/E multiple of 11.4x for the FY26F EPS of 31.0 sen.

Analyst:
Chelsea Chew
chelsea.chew@apexsecurities.com.my