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Apparels - Peer Comparison

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Apparels (KLSE) - Peer Comparison by L. C. Chong

https://lcchong.wordpress.com/
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Apparels - Peer Comparison

  1. 1. APPARELS INDUSTRY PEER COMPARISON 8 November 2015 L. C. Chong
  2. 2. DISCLAIMER I am NOT an investment advisor nor a financial advisor, and no information provided here is to be interpreted as a suggestion to buy or sell securities. Stock analysis in this presentation may not neutral because I have incorporated my risk appetite and principles in the analysis. 2
  3. 3. DECLARATION OF INTEREST • At the time of writing, I owned shares of PADINI.
  4. 4. KEEP IN TOUCH http://lcchong.wordpress.com https://goo.gl/jjkq4P
  5. 5. SCOPE • Figures and ratios are based on the figures reported in Annual Report or the latest Q4 Quarterly Report (QR) • Comparisons are made merely based on financial figures • Growth drivers and risks/challenges are not covered here • Valuation is not covered in this analysis.
  6. 6. CHANGES • 5 Nov 2015 – First write up in PowerPoint format • 8 Nov 2015 – Applied new template
  7. 7. ECONOMIC MOATS 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 ROIC PADINI BONIA ASIABRN VOIR TGL KAMDAR PADINI 28.4% BONIA 16.4% TGL 6.2% KAMDAR 4.6% ASIABRN 3.9% VOIR 1.1% ROIC of all companies are in the downtrend. This is in tandem with risks, such as poor consumer spending and stiff competition.
  8. 8. ECONOMIC MOATS (CONT.) -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 CROIC PADINI BONIA ASIABRN VOIR TGL KAMDAR PADINI 51.8% VOIR 14.8% BONIA 10.6% ASIABRN 7.1% TGL 5.3% KAMDAR 1.4% CROIC of these companies are not consistent. This is industry norm where cash flow are highly dependent on working changes inventory.
  9. 9. PROFITABILITY 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 EBITA PADINI BONIA ASIABRN VOIR TGL KAMDAR In FY15, EBITA of most of the companies declined due to poor consumer spending.
  10. 10. PROFITABILITY (CONT.) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 EBITA Margin PADINI BONIA ASIABRN VOIR TGL KAMDAR Margin of these companies have been squeezed due to intensified competition and higher operating expenses. PADINI 14.9% (Baa) BONIA 12.0% (Baa) KAMDAR 8.4% (Ba) TGL 6.5% (B) ASIABRN 4.9% (Caa) VOIR 0.8% (Ca)
  11. 11. LEVERAGE 0.00 x 1.00 x 2.00 x 3.00 x 4.00 x 5.00 x 6.00 x 7.00 x 8.00 x FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Leverage PADINI BONIA ASIABRN VOIR TGL KAMDAR TGL 0.24 x (Aaa) PADINI 0.27 x (Aaa) BONIA 1.36 x (A) VOIR 2.99 x (Baa) ASIABRN 4.07 x (Ba) KAMDAR 5.00 x (B)
  12. 12. LIQUIDITY 0 50 100 150 200 250 300 350 400 450 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Cash Conversion Cycle PADINI BONIA ASIABRN VOIR TGL KAMDAR PADINI 78 BONIA 201 TGL 247 VOIR 332 ASIABRN 366 KAMDAR 400 Compare to others, PADINI’s CCC is the lowest in the industry, and it is trending down. This means PADINI can sell their stocks in shorter period if compare to its competitors.

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