UWC in the making

see i told u all!

RM150 mil/657 mil shares x 15x PER = RM3.42. Sell

Operating costs will go up from 3QFY19 as SST impact will kick in. For 1HFY19, they are able to enjoy lower costs due to inventory stock up during tax free period. Very unlikely that they are able to pass on fully the costs. Therefore we shall see some margin compression moving forward.

They are big locally. But room for growth is limited because their strategy is to open stores inside mall. Those new malls that will come online are mainly in klang valley. It means that it could cannabalise the sales for its existing stores. Furthermore other fast fashion retailer brands like H&M and Uniqlo are giving out discounts and entrance of other new brands like 7Dayz and HLA will worsen the competition in local fashion retailing industry. So it is very unlikely that they could price up to offset thr cost increase as it differs from its motto to provide affordable fashion items.

The contribution of overseas venture is pretty minimal at the moment. And they dont plan to expand in a big way.

Assuming they are making RM150-160mil net profit for FY19 which is about the same level that they made in FY17, that means they should trade around the level during the level which is below RM3.00.

So if u hold Padini share today, u should sell before everyone else does.

Now even suruhanjaya tenaga webpage has been closed down. And the policies dished out by the new Pakatan Harapan gov are people centric. It implies that the current Pakatan Harapan gov might not honour the cost under-recovery (under the new ICPT mechanism) to add burden on people shoulder (good for malaysian people but terribly bad for tnb, for the gov, good to please 30 mil people at the expense of this co) when it is due for review this June.