KUALA LUMPUR (Aug 28): Padini Holdings Bhd's share price rose as much as 22 sen or 6.51% to RM3.60 so far today after the clothing retailer declared a dividend of 2.5 sen a share and reported full-year net profit, which surpassed market forecast.

Yesterday, Padini said net profit fell to RM54.44 million in the fourth quarter ended June 30, 2019 (4QFY19) from RM57.21 million a year earlier. Cumulative FY19 net profit dropped to RM160.18 million from RM178.17 million a year earlier.

Padini declared a dividend of 2.5 sen per share for 4QFY19, bringing full-year dividends to 11.5 sen.

Today, TA Securities Holdings Bhd analyst Jeff Lye Zhen Xiong wrote in a note that Padini's FY19 adjusted net profit of RM168.6 million was above TA Securities' and consensus estimates at 113% of full-year forecast.

"The positive variance against our estimate was due to lower-than-expected operating expenses. We make no changes to our earnings forecasts at this juncture. Note that an analyst briefing is expected to be conducted in early-September," Lye said. He said TA Securities reiterated its buy call for Padini shares with an unchanged target price (TP) of RM4.28.

MIDF Amanah Investment Bank Bhd, however, cut its Padini TP to RM2.86 from RM3.09 with an unchanged sell call. MIDF said Padini's FY19 net profit had beaten market expectation.

MIDF analyst Nabil Zainoodin said MIDF had cut its Padini TP after MIDF rolled forward its valuation base year for Padini to FY21. Nabil said the lower TP takes into account subdued business condition and consumer sentiment.

"The FY19 earnings (is) slightly above our and consensus expectation, accounting for 106% and 107% of full-year forecasts respectively," Nabil said.

At Bursa Malaysia today, Padini shares were traded at RM3.58 at 10:49am with 453,100 units transacted. Padini was among Bursa top gainers.