35, YONG PANG CHAUN

Flagship: Padini Holdings Bhd Net worth: RM1.544bil FROM garment manufacturer in the 1970s to a fashion retailer with a market capitalisation of RM3.47bil as at the end of 2017 is quite the achievement. For Yong, the founder and managing director, who understudied a textile merchant in Singapore in the 1960s before setting up his own business making ladies apparel, the Padini story is the story of his entrepreneurial spirit.

He controls Padini via a 44.5% stake held through Yong Pang Chaun Holdings Sdn Bhd. Despite the challenging consumer sentiment last year and the previous year, the company managed to post a net profit of RM157mil for the financial year ended June 30, 2017 (FY17), from FY16’s RM137mil.

Padini’s share price rose to an all-time high of RM5.46 on Dec 18 and finished with a whopping 109.99% gain last year that contributed to Yong’s net worth rising. Quick to react to fashion trends and changing consumer tastes over the years, he set up several different brands besides the Padini brand, including Seed, Vincci, PDI and Brands Outlet. The share price performance also reflects the market’s confidence in Padini’s outlook, while Budget 2018 measures boosting household incomes will mean increased private consumption with a positive spillover for consumer stocks like Padini.

The company has a presence not only in Malaysia but also Asean and the Middle East with 330 stores. Padini also opened 14 new stores in FY17, including six Padini Concept Stores boutiques, seven Brands Outlets and one free-standing store. It has also closed several of its Vincci and Seed outlets locally and abroad as part of plans to restructure the business and concentrate on value-for-money fashion.

Padini was quick to see the importance of the Internet, having set up operations since 2000. The company has been busy setting up its e-commerce infrastructure and like many brick-and-mortar retailers, sees e-commerce contributing to its growth.