Wednesday, August 8, 2012

Padini Holdings Berhad: Maintain Buy - Minimal risk foray into Indonesia

PADINI - Minimal risk foray into Indonesia
  • Exclusive 10-year deal for VNC. Padini Holdings has inked a 10-year deal with Singapore's F J Benjamin (FJB) for the latter to distribute VNC (better known as Vincci in Malaysia) shoes and accessories in Indonesia.
  • This deal will not contribute significantly to the group in the near term but it helps enhance Padini’s brand in the region.
  • We maintain our forecasts and Buy call, but with a higher TP of MYR2.44 (+17%), pegged to a higher 14x FY6/13 EPS (12x previously), 0.7x PEG, alongside higher consumer peer valuations.
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Source: Maybank Research - 8 August 2012

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