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PP16832/01/2013 (031128)

Malaysia
Company Update
17 January 2013

Buy (unchanged)
Share price: Target price: MYR1.83 MYR2.40 (unchanged)

Padini Holdings
No Stranger To Competition
Recent concerns addressed; Maintain BUY. We conducted channel checks to determine whether Padini has been affected by increasing competition. Our on-the-ground findings are that Padini’s brands remain popular among shoppers, and Brands Outlet in particular has been well received. Maintain BUY with an unchanged TP of MYR2.40 (14x 2013 PER). A net dividend yield of 4.4-4.9% and quarterly dividend payments further enhances the stock’s appeal. Paradigm Mall observation. We observed shoppers’ buying pattern at the newly opened mall in Petaling Jaya last weekend (Chinese New Year shopping has started), which houses major local and international apparel brands such as H&M, Uniqlo, Zara, Padini Concept Store (PCS) and Brands Outlet (BO) under one roof. Our findings are that Padini remains the “market leader” in this mall; its PCS and BO brands have a combined 45% “market share”. H&M stood out as the main competitive threat, accounting for a 38% “share of the market”. Extending its market presence. Elsewhere, store expansions will resume in FY6/14 after the slowdown in FY6/13 with only one new Brands Outlet. The five new stores (3 Brands Outlets, 2 Padini Concept Stores) for FY6/14 will all be located outside the Klang Valley, as the group extends its presence in the suburban areas. Besides facing less competition from foreign brands, it fits well into the group’s strategy to grow the Brands Outlet business which focuses on value proposition. Less reliant on Chinese manufacturers. The group received the fourth shipment of garments from its Bangladeshi manufacturers in Dec 2012. Diversifying its suppliers reduces its reliance on Chinese manufacturers in supplying finished goods to c.70% compared to c.90% previously. Apart from that, the setting up of its Hong Kong office at the end of 2012 enables the group to stay closer to its manufacturers in China and enhances quality control and operational efficiencies. Proven execution track record. Competition is not something new to the group; proper execution and staying relevant in the dynamic fashion industry are the key success factors. Padini Holdings has delivered an 18% 5-year revenue CAGR and has been profitable, despite the entry of international brands. We remain positive on the group’s delivery. Our 10-14% p.a. EPS growth forecasts for FY13-15 are unchanged.
Padini Holdings Berhad– Summary Earnings Table
FYE (MYR m) Revenue EBITDA Recurring Net Profit Recurring Basic EPS (cents) EPS growth (%) DPS (cents) PER EV/EBITDA (x) Div Yield (%) P/BV(x) YTD (1.1) (0.7) Net Gearing (%) ROE (%) ROA (%) Consensus Net Profit (MYR m) 2011A 568.5 126.9 75.7 11.5 24.1% 4.0 15.9 8.8 2.2 4.3 NA 29.3% 18.9% na 2012A 725.2 150.9 96.0 14.6 26.8% 6.0 12.5 7.4 3.3 3.5 NA 30.8% 20.7% na Source: Maybank KE 2013F 2014F 2015F 883.1 959.8 1,074.5 168.0 188.3 207.6 105.0 119.5 132.4 16.0 18.2 20.1 9.3% 13.8% 10.8% 8.0 9.0 10.0 11.5 6.5 4.4 3.1 NA 28.6% 20.0% 107.6 10.1 5.6 4.9 2.7 NA 28.2% 19.7% 121.3 9.1 4.8 5.5 2.3 NA 27.1% 19.3% 131.7

Kang Chun Ee chunee@maybank-ib.com (03) 2297 8675

Stock Information
Description: Retail garments, shoes, ancillary products and accessories. Ticker: Shares Issued (m): Market Cap (MYR m): 3-mth Avg Daily Turnover (USD m): KLCI: Free float (%): Major Shareholders: Pang Chaun Yong Skim Amanah Saham PAD MK 657.9 1,204.0 0.76 1,682.95 50.1 % 44.0 5.0

Key Indicators
Net cash / (debt) (MYR m): NTA/shr (MYR): Net Gearing (x): 124.8 0.53 Net Cash

Historical Chart
2.5
2.0 1.5 1.0

PAD MK Equity

0.5
0.0 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12

Performance: 52-week High/Low

MYR2.37/MYR1.12

Absolute (%) Relative (%)

1-mth 3.4 1.3

3-mth (1.1) (2.9)

6-mth (4.7) (7.0)

1-yr 57.8 47.0

Stock Information

SEE APPENDIXandFOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS generation, transmission I distribution of electricity

Description: National power utility involved in the

Padini Holdings

Ear to the ground
Concerns over competition overdone? Following the entry of Japanese brand Uniqlo and Swedish brand H&M into Malaysia in the last two years, investors are increasingly concerned as to whether Padini Holdings can defend its market share and continue to grow its apparel business. We visited Paradigm Mall in Kelana Jaya, which houses some big apparel brands including H&M, Uniqlo, Zara, Padini Concept Store and Brands Outlet, all under the same roof, to gauge the intensity of the competition. There are only two shopping malls that house all these brands together, and we chose Paradigm Mall over Setia City Mall at Shah Alam because Paradigm Mall is located in a more mature suburb of Petaling Jaya, which has a more reflective consumer demographic compared to a new township. Gauging sentiment. We observed the crowd at the retail level over a chosen time period (1.30pm to 4.30pm on a Sunday), and counted the number of plastic bags that shoppers were carrying. Counting bags instead of people filtered out window shoppers, and provided a better assessment of purchases. Each brand provides distinct bags for its shoppers which were easily recognisable. The method has its imperfections such as duplication of samples and the short timespan of our survey. Nevertheless, our objective is more to gauge sentiment rather than to collect precise market share data.
Chart 1: Estimation of market share among major brands in Paradigm Mall
5% 2% 10% 38% H&M

Brands Outlet
Padini Concept Store

14%

Uniqlo
Cotton On Nichi

31%
Source: Maybank KE’s observation

Brands Outlet is well received. H&M turned out to command the biggest “market share” of 38% among the six major clothing brands in Paradigm Mall – if we consider Padini Concept Store and Brands Outlet as two separate apparel outlets competiting on their own among the other apparel outlets at Paradigm Mall. We were pleasantly surprised by Brands Outlet, which seems to have garnered a 31% “market share” in our findings, not far behind H&M and ahead of Padini Concept Store (14%). On a cumulative basis, Padini’s share of apparel shoppers in the mall stood at 45%, which has overtaken H&M.

17 January 2013

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Padini Holdings

Limited presence in Malaysia for now. While it would appear that H&M and Uniqlo are giving Padini a run for its money, a point to note is that their presence in the country is limited at this stage. H&M only has three outlets in the Klang Valley while Uniqlo has seven outlets. Padini has eight Concept Stores in the Klang Valley out of 25 nationwide. Brands Outlet - more room to grow. First launched in 2006, Brands Outlet is newer than Padini Concept Store (introduced in 1997) that focuses on value propositions. To date, about half of all Padini’s Brands Outlet stores are located in KL or Selangor as compared to a third of Padini Concept Stores. Hence, there is room for Brands Outlets to expand to the other cities or states. Brands Outlets contributed 20% of group PBT in FY6/12, compared to 16% in FY6/11 and 7.4% in FY6/10.

Chart 2: H&M on a Sunday afternoon

Chart 3: Zara on a Sunday afternoon

Source: Maybank KE

Source: Maybank KE

Chart 4: Brands Outlet on a Sunday afternoon

Chart 5: Padini Concept Store on a Sunday afternoon

Source: Maybank KE

Source: Maybank KE

17 January 2013

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Padini Holdings Chart 6: Uniqlo on a Sunday afternoon

Source: Maybank KE

Beyond Paradigm Mall
To close down Vincci+ eventually. Unable to grow the brand in a meaningful way, the group intends to gradually close down all four Vincci+ stores as their tenancies expire over the next three years. Vincci+ sells higher-end shoes compared to Vincci. TIZIO, a new label selling shoes, handbags and accessories, opened its first store at Mid Valley Megamall in Nov 2012 and remains an option for the group to expand it in the future. There is no change to our earnings forecasts, as the revenue and PBT contribution from Vincci+ is not significant.

Chart 7: The new label TIZIO @ Mid Valley Megamall

Source: Maybank KE

17 January 2013

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Padini Holdings

Extending its market presence. Store expansion will resume in FY6/14 after the slowdown in FY6/13 when only one Brands Outlet store was opened in Aug 2012. The five new stores to be opened will all be located outside the Klang Valley, and comprise three Brands Outlet stores (in Miri, Seremban, Penang) and two Padini Concept Stores (in Miri and Penang) that could add some 70,000-75,000 sq ft (+10%) of gross floor area to the group’s total retail space.
Chart 8: Constant expansion in Padini Holdings’s total retail space
('000 sq ft) 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13F FY14F FY15F Retail space (LHS) Sales / sq ft (RHS) (MYR) 1200.0 1000.0 800.0 600.0 400.0 200.0 0.0

Source: Maybank KE

Chart 9: Sales by distribution channels in FY6/11
Domestic - Consignment Domestic - Franchise 1.6% 9.3% Domestic - Own stores Exports

Chart 10: Sales by distribution channels in FY6/12
Domestic - Consignment Domestic - Franchise Domestic - Own stores Exports 10.7%

1.6%
13.3%

8.3%

75.8%

79.4%

Source: Company, Maybank KE

Source: Company, Maybank KE

17 January 2013

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Padini Holdings
INCOME STATEMENT (MYR m) FY Jun INCOME STATEMENT (MYR m) Revenue EBITDA Depreciation & Amortisation Operating Profit (EBIT) Interest (Exp)/Inc Associates One-offs Pre-Tax Profit Tax Minority Interest Net Profit Recurring Net Profit Revenue Growth % EBITDA Growth (%) EBIT Growth (%) Net Profit Growth (%) Recurring Net Profit Growth (%) Tax Rate % 2012A 725.2 150.9 (20.3) 130.6 0.1 0.0 0.0 130.6 (34.6) 0.0 96.0 96.0 27.6% 18.9% 24.9% 26.8% 26.8% 26.5% 2013F 883.1 168.0 (24.2) 143.8 0.0 0.0 0.0 143.8 (38.8) 0.0 105.0 105.0 21.8% 11.4% 10.1% 9.3% 9.3% 27.0% 2014F 959.8 188.3 (25.0) 163.3 0.4 0.0 0.0 163.7 (44.2) 0.0 119.5 119.5 8.7% 12.1% 13.6% 13.8% 13.8% 27.0% 2015F 1,074.5 207.6 (27.4) 180.2 1.2 0.0 0.0 181.4 (49.0) 0.0 132.4 132.4 12.0% 10.2% 10.3% 10.8% 10.8% 27.0% BALANCE SHEET (MYR m) FY Jun Fixed Assets Other LT Assets Cash/ST Investments Other Current Assets Total Assets ST Debt Other Current Liabilities LT Debt Other LT Liabilities Minority Interest Shareholders' Equity Total Liabilities-Capital Share Capital (m) Gross Debt/(Cash) Net Debt/(Cash) Working Capital 2012A 90.3 11.8 137.6 242.7 482.3 31.2 89.2 19.6 2.2 0.0 340.1 482.3 65.8 50.8 (86.8) 259.9 2013F 93.4 11.8 160.5 303.3 569.1 31.2 122.9 19.6 2.2 0.0 393.2 569.1 65.8 50.8 (109.8) 309.7 2014F 98.8 11.8 206.2 327.9 644.6 31.2 137.5 19.6 2.2 0.0 454.1 644.6 65.8 50.8 (155.4) 365.4 2015F 102.9 11.8 250.5 365.7 730.9 31.2 156.5 19.6 2.2 0.0 521.4 730.9 65.8 50.8 (199.7) 428.5

CASH FLOW (MYR m) FY Jun Profit before taxation Depreciation Net interest receipts/(payments) Working capital change Cash tax paid Others (incl'd exceptional items) Cash flow from operations Capex Disposal/(purchase) Others Cash flow from investing Debt raised/(repaid) Equity raised/(repaid) Dividends (paid) Interest payments Others Cash flow from financing Change in cash
Source: Company, Maybank KE

RATES & RATIOS 2012A 130.6 20.3 (0.1) (53.5) (29.2) (44.1) 24.1 (26.8) 0.0 (0.4) (27.2) 3.7 0.0 0.0 (2.3) 0.0 1.3 (1.7) 2013F 143.8 24.2 0.0 (52.4) (38.8) (27.2) 49.6 (27.4) 0.0 2.4 (25.0) 0.0 0.0 0.0 (2.4) 0.0 (2.4) 22.2 2014F 163.7 25.0 (0.4) (29.4) (44.2) (39.9) 74.9 (30.4) 0.0 2.8 (27.6) 0.0 0.0 0.0 (2.4) 0.0 (2.4) 44.9 2015F 181.4 27.4 (1.2) (40.2) (49.0) (44.4) 74.0 (31.6) 0.0 3.6 (28.0) 0.0 0.0 0.0 (2.4) 0.0 (2.4) 43.6 FY Jun EBITDA Margin % Op. Profit Margin % Net Profit Margin % ROE % ROA % Net Margin Ex. El % Dividend Cover (x) Interest Cover (x) Asset Turnover (x) Asset/Debt (x) Debtors Turn (days) Creditors Turn (days) Inventory Turn (days) Net Gearing % Debt/ EBITDA (x) Debt/ Market Cap (x) 2012A 20.8% 18.0% 13.2% 30.8% 20.7% 13.2% 2.4 NA 1.5 9.5 11.7 54.1 187.2 NA 0.3 0.0 2013F 19.0% 16.3% 11.9% 28.6% 20.0% 11.9% 2.0 (7,505.9) 1.6 11.2 11.7 54.1 187.2 NA 0.3 0.0 2014F 19.6% 17.0% 12.5% 28.2% 19.7% 12.5% 2.0 NA 1.5 12.7 11.7 54.1 187.2 NA 0.3 0.0 2015F 19.3% 16.8% 12.3% 27.1% 19.3% 12.3% 2.0 NA 1.5 14.4 11.7 54.1 187.2 NA 0.2 0.0

17 January 2013

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Padini Holdings

RESEARCH OFFICES
REGIONAL
P K BASU Regional Head, Research & Economics (65) 6432 1821 pk.basu@maybank-ke.com.sg WONG Chew Hann, CA Acting Regional Head of Institutional Research (603) 2297 8686 wchewh@maybank-ib.com ONG Seng Yeow Regional Products & Planning (65) 6432 1453 ongsengyeow@maybank-ke.com.sg

ECONOMICS
Suhaimi ILIAS Chief Economist  Singapore | Malaysia (603) 2297 8682 suhaimi_ilias@maybank-ib.com Luz LORENZO  Philippines | Indonesia (63) 2 849 8836 luz_lorenzo@maybank-atrke.com Tim LEELAHAPHAN  Thailand (662) 658 1420 tim.l@maybank-ke.co.th

MALAYSIA
WONG Chew Hann, CA Head of Research (603) 2297 8686 wchewh@maybank-ib.com  Strategy  Construction & Infrastructure Desmond CH’NG, ACA (603) 2297 8680 desmond.chng@maybank-ib.com  Banking - Regional LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com  Oil & Gas  Automotive  Shipping ONG Chee Ting, CA (603) 2297 8678 ct.ong@maybank-ib.com  Plantations- Regional Mohshin AZIZ (603) 2297 8692 mohshin.aziz@maybank-ib.com  Aviation  Petrochem YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com  Gaming – Regional  Media T AN CHI WEI, CFA (603) 2297 8690 chiwei.t@maybank-ib.com  Power  Telcos WONG Wei Sum, CFA (603) 2297 8679 weisum@maybank-ib.com  Property & REITs LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com  Building Materials  Manufacturing  Technology LEE Cheng Hooi Head of Retail chenghooi.lee@maybank-ib.com  Technicals

SINGAPORE
Gregory YAP Head of Research (65) 6432 1450 gyap@maybank-ke.com.sg  Technology & Manufacturing  Telcos - Regional Wilson LIEW (65) 6432 1454 wilsonliew@maybank-ke.com.sg  Hotel & Resort  Property & Construction James KOH (65) 6432 1431 jameskoh@maybank-ke.com.sg  Logistics  Resources  Consumer  Small & Mid Caps YEAK Chee Keong, CFA (65) 6432 1460 yeakcheekeong@maybank-ke.com.sg  Offshore & Marine Alison FOK (65) 6432 1447 alisonfok@maybank-ke.com.sg  Services  S-chips Bernard CHIN (65) 6432 1146 bernardchin@maybank-ke.com.sg  Transport (Land, Shipping & Aviation) ONG Kian Lin (65) 6432 1470 ongkianlin@maybank-ke.com.sg  REITs / Property Wei Bin (65) 6432 1455 weibin@maybank-ke.com.sg  S-chips  Small & Mid Caps

THAILAND
Sukit UDOMSIRIKUL Head of Research (66) 2658 6300 ext 5090 Sukit.u@maybank-ke.co.th Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 Maria.L@maybank-ke.co.th  Consumer/ Big Caps Andrew STOTZ Strategist (66) 2658 6300 ext 5091 Andrew@maybank-ke.co.th Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th  Strategy Suttatip PEERASUB (66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th  Media  Commerce Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th  Energy  Petrochem Termporn T ANTIVIVAT (66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th  Property Woraphon WIROONSRI (66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th  Banking & Finance Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th  Transportation  Small cap. Chatchai JINDARAT (66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th  Electronics Pongrat RATANATAVANANANDA (66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th  Services/ Small Caps

INDONESIA
Katarina SETIAWAN Head of Research (62) 21 2557 1125 katarina.setiawan@maybank-ke.co.id  Consumer  Strategy  Telcos Lucky ARIESANDI, CFA (62) 21 2557 1127 lucky.ariesandi@maybank-ke.co.id  Base metals  Mining  Oil & Gas  Wholesale Rahmi MARINA (62) 21 2557 1128 rahmi.marina@maybank-ke.co.id  Banking  Multifinance Pandu ANUGRAH (62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id  Automotive  Heavy equipment  Plantation  Toll road Adi N. WICAKSONO (62) 21 2557 1128 adi.wicaksono@maybank-ke.co.id  Generalist Anthony YUNUS (62) 21 2557 1139 anthony.yunus@maybank-ke.co.id  Cement  Infrastructure  Property Arwani PRANADJAYA (62) 21 2557 1129 arwani.pranadjaya@maybank-ke.co.id  Technicals

HONG KONG / CHINA
Edward FUNG Head of Research (852) 2268 0632 edwardfung@kimeng.com.hk  Construction Ivan CHEUNG, CFA (852) 2268 0634 ivancheung@kimeng.com.hk  Property  Industrial Ivan LI, CFA (852) 2268 0641 ivanli@kimeng.com.hk  Banking & Finance Jacqueline KO, CFA (852) 2268 0633 jacquelineko@kimeng.com.hk  Consumer Andy POON (852) 2268 0645 andypoon@kimeng.com.hk  Telecom & equipment Alex YEUNG (852) 2268 0636 alexyeung@kimeng.com.hk  Industrial Warren LAU (852) 2268 0644 warrenlau@kimeng.com.hk  Technology - Regional Karen Kwan (852) 2268 0640 karenkwan@kimeng.com.hk  China Property

VIETNAM
Michael KOKALARI, CFA Head of Research (84) 838 38 66 47 michael.kokalari@maybank-kimeng.com.vn  Strategy Nguyen Thi Ngan Tuyen (84) 844 55 58 88 x 8081 tuyen.nguyen@maybank-kimeng.com.vn  Food and Beverage  Oil and Gas Ngo Bich Van (84) 844 55 58 88 x 8084 van.ngo@maybank-kimeng.com.vn  Banking Trinh Thi Ngoc Diep (84) 844 55 58 88 x 8242 diep.trinh@maybank-kimeng.com.vn  Technology  Utilities  Construction Dang Thi Kim Thoa (84) 844 55 58 88 x 8083 thoa.dang@maybank-kimeng.com.vn  Consumer Nguyen Trung Hoa +84 844 55 58 88 x 8088 hoa.nguyen@maybank-kimeng.com.vn  Steel  Sugar  Resources

INDIA
Jigar SHAH Head of Research (91) 22 6623 2601 jigar@maybank-ke.co.in  Oil & Gas  Automobile  Cement Anubhav GUPTA (91) 22 6623 2605 anubhav@maybank-ke.co.in  Metal & Mining  Capital goods  Property Ganesh RAM (91) 226623 2607 ganeshram@maybank-ke.co.in  Telecom  Contractor

PHILIPPINES
Luz LORENZO Head of Research (63) 2 849 8836 luz_lorenzo@maybank-atrke.com  Strategy Laura DY-LIACCO (63) 2 849 8840 laura_dyliacco@maybank-atrke.com  Utilities  Conglomerates  Telcos Lovell SARREAL (63) 2 849 8841 lovell_sarreal@maybank-atrke.com  Consumer  Media  Cement Kenneth NERECINA (63) 2 849 8839 kenneth_nerecina@maybank-atrke.com  Conglomerates  Property  Ports/ Logistics Katherine T AN (63) 2 849 8843 kat_tan@maybank-atrke.com  Banks  Construction Ramon ADVIENTO (63) 2 849 8845 ramon_adviento@maybank-atrke.com  Mining

17 January 2013

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Padini Holdings APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may rec eive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connec ted parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information current ly available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticip ated events. MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this rep ort, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, p erform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report. This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This rep ort is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report. Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Singapore This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipient s of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. Thailand The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on th e Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, t herefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the pri or written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect. US This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defin ed in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investment s to you under relevant legislation and regulations. UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

17 January 2013

Page 8 of 10

Padini Holdings

DISCLOSURES
Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and t he Securities and Exchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (“KEVS”) (License Number: 71/UBCK-GP) is licensed under the StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: I NF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also register ed with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Singapore: As of 17 January 2013, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report. Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. As of 17 January 2013, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 m onths, significant advice or investment services in relation to the investment concerned or a related investment.

OTHERS
Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to th e specific recommendations or views expressed in the report. Reminder Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and p olitical factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings
Maybank Kim Eng Research uses the following rating system: BUY HOLD SELL Total return is expected to be above 10% in the next 12 months (excluding dividends) Total return is expected to be between -10% to +10% in the next 12 months (excluding dividends) Total return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investm ent ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):
Adex = Advertising Expenditure BV = Book Value CAGR = Compounded Annual Growth Rate Capex = Capital Expenditure CY = Calendar Year DCF = Discounted Cashflow DPS = Dividend Per Share EBIT = Earnings Before Interest And Tax EBITDA = EBIT, Depreciation And Amortisation EPS = Earnings Per Share EV = Enterprise Value FCF = Free Cashflow FV = Fair Value FY = Financial Year FYE = Financial Year End MoM = Month-On-Month NAV = Net Asset Value NTA = Net Tangible Asset P = Price P.A. = Per Annum PAT = Profit After Tax PBT = Profit Before Tax PE = Price Earnings PEG = PE Ratio To Growth PER = PE Ratio QoQ = Quarter-On-Quarter ROA = Return On Asset ROE = Return On Equity ROSF = Return On Shareholders’ Funds WACC = Weighted Average Cost Of Capital YoY = Year-On-Year YTD = Year-To-Date

17 January 2013

Page 9 of 10

Padini Holdings



Malaysia

Maybank Investment Bank Berhad (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194 Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888 Fax: (603) 2282 5136



Singapore

Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Research Pte Ltd 9 Temasek Boulevard #39-00 Suntec Tower 2 Singapore 038989 Tel: (65) 6336 9090 Fax: (65) 6339 6003



London

Maybank Kim Eng Securities (London) Ltd 6/F, 20 St. Dunstan’s Hill London EC3R 8HY, UK Tel: (44) 20 7621 9298 Dealers’ Tel: (44) 20 7626 2828 Fax: (44) 20 7283 6674



New York

Maybank Kim Eng Securities USA Inc 777 Third Avenue, 21st Floor New York, NY 10017, U.S.A. Tel: (212) 688 8886 Fax: (212) 688 3500

Stockbroking Business:



Hong Kong

Kim Eng Securities (HK) Ltd Level 30, Three Pacific Place, 1 Queen’s Road East, Hong Kong Tel: (852) 2268 0800 Fax: (852) 2877 0104



Indonesia

PT Kim Eng Securities Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189



India

Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India Tel: (91).22.6623.2600 Fax: (91).22.6623.2604



Philippines

Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Philippines 1200 Tel: (63) 2 849 8888 Fax: (63) 2 848 5738



Thailand

Maybank Kim Eng Securities (Thailand) Public Company Limited 999/9 The Offices at Central World, 20th - 21st Floor, Rama 1 Road Pathumwan, Bangkok 10330, Thailand Tel: (66) 2 658 6817 (sales) Tel: (66) 2 658 6801 (research)



Vietnam
In association with



Saudi Arabia
In association with

Kim Eng Vietnam Securities Company 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 838 38 66 36 Fax : (84) 838 38 66 39

Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575 Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787



South Asia Sales Trading

Connie TAN connie@maybank-ke.com.sg Tel: (65) 6333 5775 US Toll Free: 1 866 406 7447



North Asia Sales Trading

Eddie LAU eddielau@kimeng.com.hk Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267 www.maybank-ke.com | www.kimengresearch.com.sg

17 January 2013

Page 10 of 10

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