Padini’s FY12 results of RM95m came in within ours and market expectations. However there was a positive surprise of a 2sen/share interim dividend which means a FY pay-out of 6 sen or 42% which is higher than our 5.5sen FY forecast. We are upgrading our dividend payout assumptions to 40-42% going forward. Padini trades at a 13.2x FY13 PE which is at an unwarranted discount to Malaysian and ASEAN peers. We re-iterate BUY with RM2.83 TP.
As Padini continues to generate cash, we see scope for an increased dividend payout which will make Padini an even more attractive investment option. q At 13.3x FY13 PE, Padini trades at a steep discount to ASEAN and Malaysian peer averages of 22x and 21x respectively. In our view, this discount is unwarranted as Padini’s improved liquidity and attractive growth profile
result up year to year but drop quarter to quarter ... expect year end quarter to be better due to hari raya ... good to buy now ... padini hold the record of sure bounce back after each drop !
My friend bought Padini < 0.90 ( September 2011), I bought > 300,000 shares (May 2012) using Warren Buffett method : when others fearful(sell in May), we greedy.
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....
hooi
1,773 posts
Posted by hooi > 2012-08-29 16:57 | Report Abuse
Hold at 2.33-2.36