How can a 53-year-old brand break through the bottleneck?
There is a saying:
"Good-looking outfits are all the same, interesting souls are one in a thousand."
Cash-rich companies in Malaysia say:
"There are many cash-rich companies, but only a few projects can sustain growth."
#PADINI, a 53-year-old established consumer brand
How to break through bottlenecks as the times change.
PADINI is a well-known company, and most people have owned outfits from its brands. After experiencing the impact of GST in 2015, the company's profits continued to grow for 3 years, stimulating the share price to break through the RM6 mark. In the 2019 financial year, profit declined, causing the stock price to plummet by one-third from its high level, dropping below RM2 after the pandemic.
Due to retaliatory consumer spending stimulus in FY23, both revenue and stock prices hit new highs, with the stock price briefly surpassing RM4 before stagnating. This was mainly due to the cost growth environment in FY24, where despite a yearly revenue growth of RM97 million, it could not prevent a 34% decline in profits.
During the outbreak of the pandemic, online shopping became popular. Many thought that with PADINI having billions in cash on hand, expanding online sales should not be difficult. However, the reality is that money alone cannot solve everything, and venturing into new territories also takes time to develop.
PADINI's dividend yield is no longer as high as before, currently standing at only 3.33%. Despite having over RM821 million in cash, the company has shown no intention of paying out special dividends. With the recent 2% Dividend Tax, it remains to be seen if this will stimulate PADINI to distribute more dividends in the next quarter.
Having been established for 53 years and listed for 26 years, PADINI is undoubtedly successful. The company's 2-for-1 bonus share issue to shareholders this year may attract short-term market attention. However, as Malaysia's demographic dividend gradually diminishes and foreign brands loom, how will PADINI break through the challenges and reach new heights?
If PADINI were to be described as a person, would you consider it as a youth, an adult, in its prime, or elderly?
"Good-looking outfits are all the same, interesting souls are one in a thousand."
Cash-rich companies in Malaysia say:
"There are many cash-rich companies, but only a few projects can sustain growth."
#PADINI, a 53-year-old established consumer brand
How to break through bottlenecks as the times change.
PADINI is a well-known company, and most people have owned outfits from its brands. After experiencing the impact of GST in 2015, the company's profits continued to grow for 3 years, stimulating the share price to break through the RM6 mark. In the 2019 financial year, profit declined, causing the stock price to plummet by one-third from its high level, dropping below RM2 after the pandemic.
Due to retaliatory consumer spending stimulus in FY23, both revenue and stock prices hit new highs, with the stock price briefly surpassing RM4 before stagnating. This was mainly due to the cost growth environment in FY24, where despite a yearly revenue growth of RM97 million, it could not prevent a 34% decline in profits.
During the outbreak of the pandemic, online shopping became popular. Many thought that with PADINI having billions in cash on hand, expanding online sales should not be difficult. However, the reality is that money alone cannot solve everything, and venturing into new territories also takes time to develop.
PADINI's dividend yield is no longer as high as before, currently standing at only 3.33%. Despite having over RM821 million in cash, the company has shown no intention of paying out special dividends. With the recent 2% Dividend Tax, it remains to be seen if this will stimulate PADINI to distribute more dividends in the next quarter.
Having been established for 53 years and listed for 26 years, PADINI is undoubtedly successful. The company's 2-for-1 bonus share issue to shareholders this year may attract short-term market attention. However, as Malaysia's demographic dividend gradually diminishes and foreign brands loom, how will PADINI break through the challenges and reach new heights?
If PADINI were to be described as a person, would you consider it as 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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