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Friday, 15 July 2016

Maybank maintains Hold call on Padini



KUALA LUMPUR: Maybank Investment Bank Research has kept up its Hold approach Padini with an unaltered target cost of RM2.30.

The examination house said on Friday Padini is idealistic on a positive final quarter 2016 deals development which could be sponsored by its progressing special endeavors.

"This is extensively in accordance with our desires. We keep up our money related year 2016-2018 income gauges pending the arrival of its outcomes one month from now," it said.

Maybank Research included that its ebb and flow money related year 2016 figure means a final quarter this year net benefit appraisal of RM32mil.

"We expect final quarter 2016's topline to be driven by extra commitment from new outlets, forceful advancements and low value focuses for its stock, especially for Brands Outlet.

"We expect quarter-on-quarter deals to plunge, given the occasionally weaker months of Apr and May, combined with only a month of the pre-Hari Raya shopping season," it said

Going ahead, it said that Padini is relied upon to open no less than four outlets in money related year 2017 in Sunway Velocity Mall and Empire Damansara Shopping Mall, versus its appraisal of seven new stores.

"We comprehend that Padini's development by means of new outlets would for the most part concentrate on the forthcoming supply of new shopping centers and existing shopping centers that are situated outside of key urban areas.

"Our presumptions and profit gauges are unaltered for the time being," it said.

It trusts Padini's present valuation of 12 times CY16 PER is reasonable as Padini could in any case face close term profit challenges from serious rivalry in the business and delicate shopper assessment.

Nonetheless, the share value's drawback could be restricted by its 10 sen net profit for every offer per annum, which, thus, is sponsored by an estimable monetary year 2017 free income of 16sen an offer.



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