Padini Holdings Berhad

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London School of Commerce
Westminster International College

MBA FOR EXECUTIVES
Financial Analysis & Management Assignment 1 & 2
Padini Holdings Berhad Financial Statement Analysis
Lecturer: Dr. Harwindar Singh
Tutor: Francis Asirvatham

Name: Student ID:
Sara Yeap Th’eng Th’eng 0008VMVM0112
Intake:January 2012
Date of Submission: 3 November 2012 Total Word Count: Assignment 1: 2,502
Assignment 2: 1,581

Executive Summary

Padini Holdings Berhad as the leading local apparel brand in Malaysia is generating upward growth in revenue and rapidly expanding globally. With foreign brands penetrated in Malaysia’s apparel market, Padini managed to aggressively open 10 new stores in year 2012. This report has highlighted noteworthy events from the previous financial results based on their income and financial position statement. Padini’s financial stability has been compared to its direct rivalry, VOIR as both focused in apparel industry as a Group whereby VOIR’s previous 5 years financial statements were thoroughly evaluated in terms of profitability, efficiency, liquidity, investment capability and financial gearing ratio. From all these findings, it is proven that Padini will be growing unwavering and expected a continuous 5-year historical peak valuation of 11x of per earnings ratio. It is most likely achievable with its aggressive expansion into Indonesia market and began to emerge as a strong competitor against Indonesia’s GDP. Furthermore, this report further outlined its internal and external factors which most likely influence the positive financial results via the SWOT and Potter 5 forces model whereby changes of political view in Malaysia’s system especially imposing single-tier taxation further increased their revenue bed. Besides that, online retail businesses posed as a threat with lower operating cost which resulted lower buying price. Prominently, the key person who drove Padini to today’s success were discussed as well and this report ends with a stern suggestion to advise its stakeholders to continue to invest into this profitable organization which stays closely to its corporate governance.

Table of Contents
Executive Summary2
1.0 Purpose of Assignment4
2.0 Background of Padini Holdings4
2.1 Board of Directors7
2.2 Padini’s Porter 5 Forces (P5F)9
2.3 Padini’s SWOT Analysis10
3.0 Management Methodology11
3.1 Financial Statement Analysis12
4.0 Management decisions & impact on corporate performances14
5.0 Summary of Passing Trends15
6.0 Detailed Financial Analysis16
6.1Liquidity Ratio16
6.2 Investment Ratio17
6.3 Efficiency Ratio18
6.4 Profitability Ratio19
6.5 Gearing Ratio21
7.0 Conclusion and recommendation22
8.0 References23
9.0 Appendix25
Appendix 1 Padini Brands25
Appendix 2 Revenue Forecast26
Appendix 3 Consolidated statement of Financial Position27
Appendix 4 : Financial Highlights for 5 year Trend (Revenue/PBT/Net Asset and Net Asset Per Share, Sen )28
Appendix 5, Padini Holdings Berhad29
Appendix 6, VOIR Holdings Berhad32
Assignment 235
References40
Appendix42

1.0 Purpose of Assignment
This assignment facilitates in-depth understanding upon reviewing financial annual reports and to analyze it as a whole on how a company sustain, manage, and return its earnings to appropriate parties. In this report, Padini Holdings Berhad was selected due to the outnumbered local and foreign apparel brands presences in Malaysia’s market. As a local apparel brand, how and what Padini did to sustain and withstand its direct and indirect competitors were discussed. With similar concepts and price range, Padini’s performances would be analyzed against VOIR’s as both are apparel industry driven. 2.0 Background of Padini Holdings

Padini is one of the most successful and astonishing Malaysia’s brand in apparel industry with its...
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