Padini's Q3 earnings beat forecasts on stronger margins
KUALA LUMPUR: Padini Holdings Bhd's third-quarter (Q3) results for the financial year ending June 30, 2025 (FY25), exceeded expectations due to stronger-than-anticipated gross profit margins, said Maybank Investment Bank Bhd (Maybank IB).
The company reported a net profit of RM73 million for Q3, bringing its cumulative nine-month profit to RM152 million. This represents 92 per cent of Maybank IB's full-year forecast and 99 per cent of consensus estimates.
"The earnings beat was primarily driven by better-than-expected gross profit margins. Padini also declared a fourth interim dividend per share (DPS) of 1.8 sen and a special DPS of one sen," Maybank IB said in a note.
Looking ahead, the research house expects sequential earnings to be seasonally weaker in the absence of major festivities, though the recent appreciation of the ringgit against the renminbi could offer some cushion.
"We have raised our FY25 earnings forecast by five per cent to reflect stronger gross margins, while maintaining our FY26 and FY27 estimates. Rolling forward our valuation to FY26, we raise our target price to RM2.85," it said.
Maybank IB maintained its 'Buy' call on Padini, citing its mass-market positioning and affordability, which make it a key beneficiary of rising consumer disposable income.
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