There is a saying:
"Good-looking outfits are all the same, but interesting souls are rare."
A Malaysian money market-rich company says:
"There are many wealthy companies, but projects that can continue to grow are few and far between."
PADINI, a traditional consumer stock with a 53-year history
How to break through bottlenecks as times change
PADINI, this company can be said to be well-known, and most people have owned its brands of outfits. After experiencing the impact of GST in 2015, the company's profit continued to grow for 3 consecutive years, pushing the stock price past RM6. In the 2019 financial year, profits declined, causing the stock price to drop by a third from its high point, briefly falling below RM2 after the epidemic.
Due to retaliatory consumer stimulus in FY23, both revenue and stock prices hit new highs, but the stock price failed to sustain after briefly surpassing RM4. This is mainly because in the environment of rising costs in FY24, despite the revenue growing by RM97 million annually, it could not prevent a 34% decline in profits.
During the outbreak of the epidemic, online shopping trend surged. Some speculated that with PADINI having billions in cash on hand, expanding online sales should not be difficult. However, the reality is that having money doesn't mean everything is possible, and new tracks also require time to develop.
PADINI's weekly interest rate is no longer as high as before, now only 3.33%. The company has cash exceeding RM821 million and has no intention of paying special dividends. There is also a recent 2% Dividend Tax, will it stimulate PAD...