Saham: KLSE-PADINI - PT. Padini Holdings Berhad

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by TA

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by RHB

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by TA
Buy - TP RM4.30

"Cautiously Optimistic Outlook for FY25"

We came away from PADINI’s analyst briefing with the following key takeaways:
i) FY24 Results Review
ii) Expansion Plans and Capex Allocation
iii) Cautiously Optimistic Outlook for FY25
Maintain Buy with a lower TP of RM4.30/share, based on CY25 PER of 15x.

Analyst:
Liew Yi Jiet
yjliew@ta.com.my

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by TA
Buy - TP RM4.70

"Remains Optimistic on FY25 Outlook"

We reiterate our Buy call on Padini with an unchanged TP of RM4.70/share based on 15x CY25 EPS.

Analyst:
Liew Yi Jiet
yjliew@ta.com.my

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by RHB
Neutral - TP RM3.31

"Ending The Year On a Low Note"

KeepNEUTRAL,withnewMYR3.31TPfromMYR3.68,1%upside.Padini’s 4QFY24 (Jun) results missed estimates on softer-than-expected margin. We expect the soft GPM to persist amid aggressive promotions, driven by steep competition and soft consumer sentiment, while the operating cost environment is expected to remain elevated. Current at-mean valuation seems fair and has priced in the downside risk, supported by its sturdy balance sheet (net cash of MYR791m or MYR1.20/share as at FY24) and strong cash flow generation.

Analysts:
Tai Yu Jie
tai.yu.jie@rhbgroup.com
Soong Wei Siang
soong.wei.siang@rhbgroup.com

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by MIDF
Buy - TP RM4.30

"Weaker Results Impacted by Seasonal Factors"

• Below expectation
• 4QFY24 revenue lowered on no festive celebrations
• Earnings forecast; Maintained
• Maintain BUY with an unchanged TP of RM4.30

Analyst:
MIDF Research
research@midf.com.my

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
Research by Maybank
Buy - TP RM3.80

"4QFY24: Undershot expectations"

PAD’s 4QFY24 results fell short. Into FY25, we believe PAD’s mass market appeal, product affordability and down-trading benefits will offer some resilience against subdued consumer spending. Financial support from EPF Account 3 withdrawals may also spur spending. Our FY25E-FY26E earnings are reduced by 10%-11% and FY27E introduced. We lower TP to MYR3.80 (on unchanged 15x FY25E PER, mean). At 13x FY25E PER, PAD is trading at undemanding valuations, below its LT mean. With >10% upside potential, we U/G PAD to BUY. Its 1:2 proposed bonus issue is a positive.

Analyst:
Jade Tam
jade.tam@maybank-ib.com

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
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

$PADINI / 7052 (PADINI HOLDINGS BERHAD)
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

$PADINI / 7052 (PADINI HOLDINGS BERHAD)