[%AMPf%] 
Research by Kenanga
Market Perform - TP RM3.24

"Higher Costs Bite into Profits"

PADINI's FY24 results fell below expectations, with net profit declining by 34% YoY despite a 5% increase in revenue. The
growth in the top line came at the expense of margins, reflecting the impact of weak consumer sentiment. Looking ahead, a progressive pay rise for civil servants effective December 2024 would provide some reprieve to retailers like PADINI. However, as passing through cost increases is proving challenging, we lowered our FY25F earnings forecast by 11%, and introduced our FY26 estimate. Consequently, we have reduced our TP to RM3.24 (from RM3.63) but maintain a MARKET PERFORM call.

Analyst:
Cheow Ming Liang 
[%OUdd%]

$KLSE-PADINI 
Research by Kenanga
Market Perform - TP RM3.24

"Higher Costs Bite into Profits"

PADINI's FY24 results fell below expectations, with net profit declining by 34% YoY despite a 5% increase in revenue. The
growth in the top line came at the expense of margins, reflecting the impact of weak consumer sentiment. Looking ahead, a progressive pay rise for civil servants effective December 2024 would provide some reprieve to retailers like PADINI. However, as passing through cost increases is proving challenging, we lowered our FY25F earnings forecast by 11%, and introduced our FY26 estimate. Consequently, we have reduced our TP to RM3.24 (from RM3.63) but maintain a MARKET PERFORM call.

Analyst:
Cheow Ming Liang 
cheowml@kenanga.com.my