The Malaysian market has been turning bearish since the start of the oil slump in late 2014. In particular, most of the oil-related companies listed in Malaysia are taking a hit. However, if we look at a longer time frame, there are some companies that have been growing quite consistently for the past decade.
Here is one of the fastest growing companies we found.
The consumer story of Malaysia
It seems that a growing middle class is not just a growth story for China. Malaysia also has a growing middle class, growing population with a median age of only 25. It seems the consumer growth story is here to stay for Malaysia.
Enter Padini Holdings Bhd (PAD:MK), a manufacturer, distributor and retailer of fashion apparel and other accessories including shoes. The company owns brands like Padini, Vincci, Seed and MIKI. It retails its product in most of the Southeast Asia nations and export its products as far as the Middle East.
The company is currently has a market capitalisation close to RM 1.0 billion. It has been growing its revenue at 15% annually for the past decade. More impressively, its earnings per share has been growing at more than 29% annually for the past ten years. More impressively, the company has been growing for more than 2 decades. In FY1994, its revenue is only RM 42 million with a net income of RM 4.2 million. In FY2014, it has a revenue of RM866.3 million with a net income of RM 90.9 million.
However, sentiment for the consumer company has fallen this year with to fear of the slowing Malaysia economy and the implementation of Goods and services Tax (GST) in April 2015. That is why the company is only trading at a price to earnings of 11.7 times and has a dividend yield of more than 6.85%. For investors who do not believe that the company will be permanently damaged by these fears, this might be an interesting company to watch.Join us on Facebook for more exciting updates and discussion about value investing. Submit your email address for important market updates and FREE case studies!We will only provide you with information relevant to value investing. You can unsubscribe at any time. Your contact details will be safeguarded. The information provided is for general information purposes only and is not intended to be any investment or financial advice. All views and opinions articulated in the article were expressed in Stanley Lim’s personal capacity and does not in any way represent those of his employer and other related entities. Stanley Lim does not own any companies mentioned above