Hi Stock: it is a big member in my portfolio lei. Too big till I dare not to add more. Unfortunately, it is a big negative one. Cannot help falling love with its dividend.
It is a great news that the "Management reaffirmed its commitment to pay 2.5sen dividend each quarter (equivalent to 10sen p.a.)". Revealed by Amresearch after the recent meeting with management.http://klse.i3investor.com/blogs/amresearch/70126.jsp
Yea the 10sen div together with the price now is making the dividend yield very attractive! Hold it for long term and meanwhile take the dividend for long term investment :)
many r willing to buy when it is up ....not when it is at its low coz all gurus taught that ...if u r going for a real long term and interested in its high dividend n not share drabbling , u may consider buy at its ebb coz the returns later will be really good n surprising...
Last night, i carried out some study on PADINI due to it current super bargain valuation. From 52-week high price of 2.13 to current RM 1.45...Approximately 32% lower (or discount?)
My personal interpretation: 1) Gross Profit, NOPBT & NOPAT margin were higher in year 2010 - 2012, thereafter, it stable back to lower margin as per 2008 to 2009 when market is recovering back from 2008 crisis.
2) The management has established a good proven business strategies which will ensure continuous flowing in of higher dollar revenue and profit. We can see a steady growth of Revenue and Profit for the past 7 years by altering around the profit margin.
Cash and Cash Equivalent at the end of period 52,098,000 41,664,000 65,621,000 135,025,000 138,622,000 137,612,000 206,214,000 97,450,000 137,449,000(Sept 2014)
Market Value (Share Price) Generation per $ EPS Retained 0.37 1.02 0.51 0.54 0.70 1.11 1.0563 1.0221
@ 8 years Average: 0.79
Target Price (1) 0.79 x 1.9274 = RM 1.52 # (current RM 1.45 is pretty fair price) ------------------------------------------------------------------------------------------ @ latest 3 years average: 1.06
Target Price (2) 1.06 x 1.9274 = RM 2.04 # (based on up to Jun 2014 cummulative's EPS) ------------------------------------------------------------------------------------------
By using TTM EPS, 0.79 x 1.9142 = RM 1.51 # (current RM 1.45 is pretty fair price 1.06 x 1.9142 = RM 2.03 (based on TTM's cummulative EPS)
@ImCK: last year many many people keep talking year 2014 is very very very bad....hahaha but look at the company reports many of them + net profit...sekurang kurang ada untung...
Wing Tai owns part of Uniqlo in Malaysia, and their retail revenue and profit also decreased. So not only Padini is affected, but the retail sector as in whole is currently affected.
yistock, mind to explain what is "PE Ratio using Magic Formula" what's the different with the PE we normally use. can someone please kindly share with us , thank you.
can we say that if we emphasize on earning growth, then current price is a bit overvalue, if you want dividend then the current price is a good buy? I am non expert, I just judge base on what I feel
I personally think management is working very hard to bring in every dollar or sales/ money, rather than die die want to hold to the margin. This is typical sales procedures, lower margin, higher sales, or vice versa. Nothing wrong.
Is like an old question from a staff of mine to me: Boss, you want money or not?
#Apini, since nobody can tell the future, i think is fairer for investor to judge the company's past and trying to predict the future. No use the furure, to predict future's future.
Mr KCChongnz always mentioned that valuation is an art, rather than science, i suppose different people has different valuation judgement.
My very personal view based on my risk appetite, currently Padini is trading pretty fairly. But my "fairly" can be expensive to some if they are pessimistic about upcoming retail market pre - & post - GST.
Imaging those days when PADINI traded at RM 2.00, is it because of investor too optimistic? or Too greedy?
How about now, it seems many are fearful.
Since the share investment fundamental is still a zero sum game, the share price will sure reflect the value of the company one day. It cannot appear/ disappear suddenly from thin air.
By the way, i usually treat dividend as bonus. Just my humble opinion. Cheers!
just check through Wingtai quarter report, from RETAIL SEGMENT, the revenue compared to preceding quarter has grown from RM 40,807,000 to RM 45,426,000 or approximately +11.3%.
The profit compared preceding quarter for RETAIL SEGMENT has grown from RM 4,929,000 to RM 7,217,000. or approximately + 46.4%
From the valuation report, PADINI has been establishing a "investment feasibility stadard" at approximately 200% to 250% of Revenue Over Capex for the past 8 years. Just predicting, the target revenue for upcoming quarter should be around RM 230 million to RM 280 million.
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....
limayseng
2,076 posts
Posted by limayseng > 2015-02-10 16:10 | Report Abuse
CNY sales n offers will greatly enhance coming quarterly returns...as the GST is only effective on 1st april...