Malaysian research firm MIDF Research expresses optimism about Padini Holdings Bhd's future prospects, citing the company's robust net cash position of RM627.5 million (25% of market capitalization) as a protective measure against potential risks.
The firm attributes Padini's appeal to the B40 and M40 income groups to its affordably priced products and effective cost management. MIDF Research maintains its "Buy" recommendation for Padini, with an unchanged target price of RM4.40. The company's earnings for the third quarter of 2023 (3Q23) showed significant growth, driven by the post-pandemic recovery and improved sales.
Padini also declared a fourth single-tier interim dividend of 2.5 sen per share and a special dividend of 1.5 sen per share, bringing the total dividend for 9MFY23 to nine sen per share.