and given its large cash pile, its dividend is actually a pittance, especially if seen in the light of its rm5 price. the 11.5 sen annual dividend has not changed in years while its profits and revenues have grown quite substantially over that time. As it generates practically all its more than rm1 billion revenues in cash, the company does not require such a large cash pile and is clearly not using its resources efficiently. And if the company does not have any profitable use for all that cash, then at least distribute a major part of that as dividends to justify its high market price.
With less disposable incomes experienced because of gst , businesses of padini only good during festivals. With so many outlets operating in expensive areas , the operating. expenditure will be huge . Even with high reserves , the sustainability is a question.its high Pe n v low dividend are a deterrent for long term investors. Presently in bursa ,we have many cos which are low Pe , high returns n potentials for growth to be selected. Why want to choose Padini which is pricey now?
Trading pe 20 x is considered too high in this bear market . Dy is also too low to have any potential for the upside . Thus I predict it may dip below PE 15....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
magus
397 posts
Posted by magus > 2018-02-27 10:47 | Report Abuse
and given its large cash pile, its dividend is actually a pittance, especially if seen in the light of its rm5 price. the 11.5 sen annual dividend has not changed in years while its profits and revenues have grown quite substantially over that time. As it generates practically all its more than rm1 billion revenues in cash, the company does not require such a large cash pile and is clearly not using its resources efficiently. And if the company does not have any profitable use for all that cash, then at least distribute a major part of that as dividends to justify its high market price.