Home Asia Stronger Q4 ahead for PADINI HOLDINGS BHD (PDNI:KL)

Stronger Q4 ahead for PADINI HOLDINGS BHD (PDNI:KL)

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Stronger Q4 ahead for PADINI HOLDINGS BHD (PDNI:KL)

Padini Holdings Bhd is expected to post a stronger fourth quarter results fuelled by the Aidil Fitri festivities, Shayne Heffernan, CEO and Founder of Heffx said.

Mr Heffernan said Padini’s result for the nine-month ended March 31 2019 was within expectation.

“We continue to like Padini’s established brand equity, strategic presence throughout Malaysia, and sturdy balance sheet that enables regular dividend payouts.

“I also believe the stock deserves a valuation premium despite a lacklustre FY19 earnings growth, given the scarcity of sizeable shariah-compliant consumer stocks available,” Mr Heffernan said in a report today.

Padini has brands such as Vincci, Seed, Padini Authentics, PDI, Padini, Miki Kids and Brands Outlet.

He said Padini’s nine-month revenue had grown 5.5 per cent to RM1.3 billion, mainly driven by new store openings.

Its gross profits eroded 1.9 percentage points to 39.3 per cent on higher inventory write-downs of RM5.8 million versus RM4.6 million a year ago, and impact from Sales and Services Tax adjustments.

“The group declared a total dividend per share of 11.5 sen in FY19, unchanged from FY18. Post results, we made no major changes to our earnings forecasts,” Mr Heffernan said.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3.87.

The projected lower bound is: 3.39.

The projected closing price is: 3.63.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 6 white candles and 2 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 17 black candles for a net of 8 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 49.3507. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 41.45. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 24 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -98. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

PADINI HOLDINGS closed down -0.360 at 3.630. Volume was 26% above average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
3.800 3.800 3.630 3.630 1,426,900

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3.76 3.78 4.54
Volatility: 66 40 47
Volume: 423,350 898,510 1,012,158

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

PADINI HOLDINGS is currently 20.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of PDNI.KL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on PDNI.KL and have had this outlook for the last 10 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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