the P/E or EV/EBIT for Padini is rather low for its profitability and potential. Though I'm not as optimistic as most people here for Padini to reach that many customers etc, export market is still a relatively small portion of their revenue with a potential of a good growth. Not to mention they haven't really exploited the internet in selling their stuff. At the current valuation, it seems that the market thinks padini won't grow their earnings at all, or even experiencing a decline in earnings moving forward with negative growth

At a price of RM1.97, its trailing PE based on 2013 earnings is 7.4x. If the consensus earnings for 2014 is accurate or within reasonable bounds, huayang will be trading at 4.7x PE. From the way I see it, this is inexpensive, if not cheap by any measure.

My personal opinion, this is a very good business. Just look at their historical ROE which has been consistently above 20%. Then look at their free cash flow, which is pretty amazing compared to many companies.

I believe you mean Kutty's interpretation is wrong. It is buy 3 shares free 1 share. So even if you only have 2 lot (200 shares), you'll get 66 shares. Please correct me if I'm wrong.

cause the money pay out from the company, now company has less "retained earnings" hence lower equity