@lawrence, for P/E ratio= 13.42 to be good or not, you need to compare it with its peers from the similar industry. example : Bonia and Voir - in terms of market capitalization and earning history. and you must also check the historical average PER Padini is traded. Read up more analyst report from investment banks on this counter.
This horse has started running after a long time strolling. Really a good horse and a winner. Pays good dividends. Better place your bets before it reach the RM3 mark.
with rm3 per share do you have any idea what PE padini will be based on ttm? How high expectation investors have on Padini?How much higher the PE will be compare to mean PE?
i am not saying it is not achievable, but definitely not in a short time after looking at the PE range of Padini over the years, current PE looks like the upper end of limit already.
Valuation We value Padini at RM2.95/share based on 14x CY17 EPS. We believe Padini’s deserves to trade close to its 5-year historical peak valuation of 15.5x underpinned by 1) strong 3-year earnings CAGR of 10% in FY17/FY20, 2) growing value-for-money segment via its Brands Outlets stores, 3) well-managed financials, and 4) diminishing investable retailers within consumer sector. Our target PE of 14x is a lower than the industry average of 15.6x in FY17 (see Table 1). This is justifiable considering Padini market capitalisation is lower than peers’ average. Hence, we initiate coverage on Padini with a BUY recommendation
Padini this quarter result, very high expectation due to Raya sales will be accounted in the financial result, because every trade is a cash sales. This kind of business, where to find? But honestly speaking, only KL and Selangor outlets are crowded, others quiet too.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
optimus9199
2,794 posts
Posted by optimus9199 > 2016-07-06 21:05 | Report Abuse
Raya sales should be very good results