Posted by CFTrader > 2015-11-07 01:56 | Report Abuse

In PADINI thread, I had did a simple analysis shows that the dividend is sustainable if everything remains the same (if i am not mistaken, it's ceterus paribus right ? Sorry if I am wrong as I'm not with a business background)

The only thing that buzz me is the purchasing of investment / unit trust of PADINI.
The return rate , details are not disclosed properly.

Posted by CFTrader > 2015-11-07 01:58 | Report Abuse

With the analysis of current shareholder, I can ensure that dividend will remain as long PADINI afford to do it.

(Just like MAYBANK w/ the highest dividend compared to other bank due to the shareholders)

And recently, some IXXXXX fund is purchasing PADINI stocks ... making me unable to buy it cheaply =( *sobs.

Posted by shinado > 2015-11-07 10:00 | Report Abuse

Hi kcchongnz, great analysis on Padini. I do have a question:

What is the formula that you use for ROIC? The one that I know of is this:

ROIC = NOPAT/Invested Capital

whereby,

NOPAT = Operating income - (1 - Tax rate)

Invested Capital = Total Asset – Current Liabilities – Excess Cash

and whereby,

Excess Cash = Total Cash – MAX(0,Current Liabilities-Current Assets)

There are so many formulas and interpretation for Invested Capital especially and it's rather confusing. Based on the formula above, I am getting roughly 30% in ROIC whereas you get 40%.

I hope to hear your feedback on this matter. Thank you.

Posted by klee > 2015-11-07 12:13 | Report Abuse

Good article.

Posted by birkincollector > 2015-11-07 12:34 | Report Abuse

although Padini has their own brandS, they are not "must have" brands

See how H&M tied up with big name designers, latest being Balmain

How UNIQLO have incorporated unique technologies in their products

its time for Padini to do MORE

Posted by donfollowblindly > 2015-11-07 12:39 | Report Abuse

Agree with birkincollector. I will buy shirt that is cheapest(even from pasar malam or market or Tesco) if I can save money whenever appropriate to wear and not necessarily Padini shirt.

Posted by shinado > 2015-11-07 14:30 | Report Abuse

"Must have brands" and "big name designers" usually equal more $$$. In this kind of economic situation that our country is facing, do we buy really want to spend more on items that we might just not need?

“We buy things we don't need with money we don't have to impress people we don't like.”

Companies are cutting down on cost and laying off people. Even the government has announced budget cuts for some gov departments. Surely a typical working class Malaysian will be affected by the economic situation as well. They will be looking to buy something for a great value, like Padini which still have brand recognition. Padini knows the market needs and cater well to them.

Posted by MPI_Judy_Wong > 2015-11-07 14:53 | Report Abuse

I thought I sold my PADINI last time 2014 @ RM 2.00 and never looked back.

Stay away from Calvintaneng, the Singapore guy who stole billions of Malaysia's $$.

Doing nothning is better than listening to Calvin Tan Eng,
or better, donate your money to my college, before it goes to Calvintaneng's pocket.

Posted by kcchongnz > 2015-11-07 17:13 | Report Abuse

shinado

Use this

http://klse.i3investor.com/blogs/kcchongnz/51631.jsp



Posted by shinado > Nov 7, 2015 10:00 AM | Report Abuse

Hi kcchongnz, great analysis on Padini. I do have a question:

What is the formula that you use for ROIC? The one that I know of is this:

ROIC = NOPAT/Invested Capital

whereby,

NOPAT = Operating income - (1 - Tax rate)

Invested Capital = Total Asset – Current Liabilities – Excess Cash

and whereby,

Excess Cash = Total Cash – MAX(0,Current Liabilities-Current Assets)

There are so many formulas and interpretation for Invested Capital especially and it's rather confusing. Based on the formula above, I am getting roughly 30% in ROIC whereas you get 40%.

I hope to hear your feedback on this matter. Thank you.

Posted by kcchongnz > 2015-11-07 17:17 | Report Abuse

ks55,

Parkson used to flying high in the mid 2000 when the economy of China grew at more than 10%.

Unfortunately good days never last. With slow down of China economy and the steep competitions, its growth faltered.

I don't remember I said Parkson is such a good company now. May be I did mention that it was cheap, and with good cash flows.



Posted by ks55 > Nov 7, 2015 11:43 AM | Report Abuse

kcchongnz -- Thank you to write about Padini, I am in total agreement with you Padini is a growth stock and having potential.

I also come across you did mention Parkson Holding Bhd as a good stock. I believe Warren Buffet of Malaysia Mr Tan Teng Boo thinks alike, so icap bought into Parkson Holding Bhd at average cost around 5.2 ringgit a piece in 2007/8 and still holding until today.

So based on your understanding on Parkson Holding Bhd, it should be as good as Padini as a growth stock.

May I ask what could be the reasons Parkson Holding Bhd's share price drifted until 99 sen? Surely there must have something go very very wrong.........

I would like to locate the pitfalls for counters having similar symptoms in Bursa Malaysia and to avoid mistake. Tq.

Posted by kcchongnz > 2015-11-07 17:18 | Report Abuse

Great comments below from shinado:


Posted by shinado > Nov 7, 2015 02:30 PM | Report Abuse

"Must have brands" and "big name designers" usually equal more $$$. In this kind of economic situation that our country is facing, do we buy really want to spend more on items that we might just not need?

“We buy things we don't need with money we don't have to impress people we don't like.”

Companies are cutting down on cost and laying off people. Even the government has announced budget cuts for some gov departments. Surely a typical working class Malaysian will be affected by the economic situation as well. They will be looking to buy something for a great value, like Padini which still have brand recognition. Padini knows the market needs and cater well to them.

Posted by shinado > 2015-11-07 17:34 | Report Abuse

kcchongnz, thank you. That formula is much simpler.

Posted by kcchongnz > Nov 7, 2015 05:13 PM | Report Abuse

shinado

Use this

http://klse.i3investor.com/blogs/kcchongnz/51631.jsp

Posted by Ayoyo > 2015-11-07 19:00 | Report Abuse

Agree with Birkin collector, padini lacks a killer value proposition in their product offering. Uniqlo has a real competing edge on using technology and good quality materials yet priced competitively. It's really my favorite casual wear. And it's very obvious that while there are clearly shopping crowds with bags at uniqlo, the ones at padini are significantly fewer and more worryingly, holding no shopping bags from the stores.

Posted by duitKWSPkita > 2015-11-07 19:02 | Report Abuse

As usual thanks kind hearted sharing from KC chong....

My boyfren change taste now. He stop buying Padini goods but sometime opt for H&M...

Could you please do a write up for H&M..... Thanks ya

Posted by imoogi99 > 2015-11-07 19:31 | Report Abuse

H&M is a Sweedish company and listed in Stockholm market...you want to invest there meh. Bursa tak cukup makan???? Hmmm....bf change taste....when he's going to change girlfriend too?????

Posted by skyz > 2015-11-09 10:03 | Report Abuse

imoogi99, nice one there! hahahaha