Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 14):  Shares of Padini Holdings Bhd – which have fallen some 36% since posting its first quarter financial results on Nov 30 – continued to extend its downward streak.

As at 10.40am, the stock fell 16 sen or 4.34% to RM3.53, the lowest in over the past one year.

Padini’s share price has been sliding since the company said its 1QFY19 which ended Sep 30, 2018, fell 42.5% to RM17.96 million from RM31.2 million a year ago due to margin compression, indicating that the fashion retailer had failed to benefit from the joy of the three-month tax holiday.

This was despite quarterly revenue rising by 4.6% to RM329.8 million on increased sales.

The poor results caused Padini’s share price to nosedive 13.04% or 72 sen to close at RM4.80 on Nov 30, valuing the group at RM3.16 billion. A year ago the counter was trading at RM4.95 and it went on to hit an all-time high of RM6.17 on Aug 6 before pulling back.

Analysts have also downgraded their ratings on the stock, with most of 12 research houses holding "sell" calls and the target price ranging from RM3.95 to RM6.05, according to Bloomberg data.

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