PETALING JAYA: Padini Holdings Bhd
’s fundamentals are still viewed as “intact” despite the ongoing account‑freezing order imposed by the Malaysian Anti‑Corruption Commission (MACC), although analysts expect near‑term sentiment to remain cautious.
TA Research said Padini, in a recent virtual investor briefing, clarified that the freezing order relates to MACC investigations involving third-party vendors and external parties.
As Padini had previously transacted with these vendors, the authorities are entitled to freeze the group’s bank accounts to facilitate the probe.
“Management also noted that none of the eight individuals detained are the group’s suppliers, based on the company’s channel checks,” the research house said.
TA Research added that Padini has, over recent weeks, submitted the required documentation and provided verbal information to the authorities.
The investigation remains ongoing, with no further updates or concrete details disclosed by the MACC.
While management did not provide a firm timeline, TA Research said the authorities may freeze accounts for up to 90 days from the date of the order under Section 44(1) of the Anti‑Money Laundering, Anti‑Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
At present, 21 bank accounts remain frozen, with only partial funds from four accounts having been released. The total value and number of affected accounts have not been disclosed.
“Nevertheless, management noted that the number of frozen accounts is significant given that Padini maintains only a limited number of bank accounts.
“Positively, daily business operations remain unaffected, as the group’s key operating accounts continue to be accessible,” TA Research said.
Management also observed no material decline in customer footfall, although traffic at tourist‑centric outlets has softened due to weaker tourist arrivals amid ongoing geopolitical tensions.
Supply‑side operations remain uninterrupted, with key suppliers functioning normally.
Padini’s share price has fallen 21% year‑to‑date, weighed down by weaker than expected second-quarter financial year 2026 results and negative sentiment surrounding the freezing order.
“Based on the limited information available and management’s assurance that daily operations remain unaffected, we believe the group’s core fundamentals remain intact,” TA Research said.
