Maintain BUY with a higher target price of RM2.76 (previous target price of RM2.30) following our earnings upward revision. Our revised target price is pegged at 12.5x FY17 EPS which is +1 standard deviation above its mean PER in view of its brighter earnings prospect.

Padini remains our top pick in consumer sector for its rosy outlook that underpinned by steady stores expansion ahead. The Group’s strategy of taping into value-for-money product market segment via its Brands Outlet shelters itself from the tepid consumer spending.

Also, we favour the Group for its decent dividend yield of over 4% and consistent dividend payment.

Source: JF Apex Research - 20 May 2016