How can a 53-year-old brand break through bottlenecks?
There is a saying:
"Good looks are common, a fun soul is rare"
Cash Rich companies in Malaysia say:
"There are many wealthy companies, but finding projects that can sustain growth is rare"
#53-year-old veteran consumer stock PADINI
The era is changing, how to break through bottlenecks.
PADINI is a well-known company, and most people have owned its brand of outfits. After experiencing the impact of GST in 2015, the company's profits continued to grow for 3 consecutive years, stimulating the stock price to break the RM6 mark. In the 2019 financial year, profits declined, causing the stock price to drop by a third from its high, falling below RM2 at one point after the epidemic.
Due to retaliatory consumer spending in FY23, both revenue and stock prices reached new highs. However, after briefly exceeding RM4, the stock price could not be sustained. This was mainly because in the environment of rising costs in FY24, revenue grew by RM97 million annually but could not prevent a 34% decline in profits.
During the outbreak of the epidemic, online shopping became popular. Some speculated that with PADINI holding hundreds of millions in cash, expanding online sales should not be difficult. However, the reality is that having money does not make everything easy, and exploring new opportunities also takes time to develop.
PADINI's dividend yield is not as high as it used to be, now standing at only 3.33%. Despite having over RM821 million in cash, there are no plans to pay special dividends. With a recent 2% Dividend Tax, will it stimulate PADINI to distribute more dividends in the next quarter? We will have to wait and see.
Founded 53 years ago and listed for 26 years, PADINI is undoubtedly successful. The company's 2-for-1 bonus shares return to shareholders this year may attract market attention in the short term. However, with Malaysia's demographic dividend gradually declining and foreign brands eyeing opportunities, how can PADINI break through the challenges and reach new heights?
If PADINI were to be described as a person, do you think it is a youth, an adult, in its prime, or elderly?
"Good looks are common, a fun soul is rare"
Cash Rich companies in Malaysia say:
"There are many wealthy companies, but finding projects that can sustain growth is rare"
#53-year-old veteran consumer stock PADINI
The era is changing, how to break through bottlenecks.
PADINI is a well-known company, and most people have owned its brand of outfits. After experiencing the impact of GST in 2015, the company's profits continued to grow for 3 consecutive years, stimulating the stock price to break the RM6 mark. In the 2019 financial year, profits declined, causing the stock price to drop by a third from its high, falling below RM2 at one point after the epidemic.
Due to retaliatory consumer spending in FY23, both revenue and stock prices reached new highs. However, after briefly exceeding RM4, the stock price could not be sustained. This was mainly because in the environment of rising costs in FY24, revenue grew by RM97 million annually but could not prevent a 34% decline in profits.
During the outbreak of the epidemic, online shopping became popular. Some speculated that with PADINI holding hundreds of millions in cash, expanding online sales should not be difficult. However, the reality is that having money does not make everything easy, and exploring new opportunities also takes time to develop.
PADINI's dividend yield is not as high as it used to be, now standing at only 3.33%. Despite having over RM821 million in cash, there are no plans to pay special dividends. With a recent 2% Dividend Tax, will it stimulate PADINI to distribute more dividends in the next quarter? We will have to wait and see.
Founded 53 years ago and listed for 26 years, PADINI is undoubtedly successful. The company's 2-for-1 bonus shares return to shareholders this year may attract market attention in the short term. However, with Malaysia's demographic dividend gradually declining and foreign brands eyeing opportunities, how can PADINI break through the challenges and reach new heights?
If PADINI were to be described as a person, do you think it is a youth, an adult, in its prime, or elderly?
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投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
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