bonia is trading at pe 12.....the lowest of its chart n palely compared with padini. it is high time the management change the ceo n makes it great again.
KUALA LUMPUR: Bonia Corp Bhd has had a good run in its share price in the past one year. From having traded at just RM1.90 a year ago, the counter had risen 186% to close at RM5.50 last Friday, giving it a market capitalisation of RM1.1 billion.
A major reason for this rise apart from the group’s internal consolidation process which has improved profit margins is said to be the increased level of institutional shareholdings in the company.
Currently, institutional shareholdings in Bonia stand at 40% compared with an estimated 15% to 20% a year ago. For instance, Milingtonia Ltd has emerged as one of the substantial shareholders of Bonia in August 2013, and currently holds a 7.25% stake in the group. Milingtonia is said to be linked with Creador Group, a long-term private equity firm focused on growth-orientated businesses and currently holds a 7.25% stake in the group.
Group finance director Chong Chin Look told The Edge Financial Daily that Creador is deemed a strategic investor as it has introduced Bonia to the management of several shopping complexes in Indonesia, and has also assisted in the market survey of Bonia’s branding in Indonesia.
The institutional shareholdings in Bonia are also more diverse compared with several years ago, considering that Permodalan Nasional Bhd (PNB) once held a dominant 32.99% stake in the retail group in June 2011. PNB has now ceased to be a shareholder of Bonia, having divested its stake gradually to other institutional funds including Creador.
Moving forward, Datuk Albert Chiang, group managing director of Bonia, said the group is open to strategic partnerships but cautious in picking the right partner.
“We’ve always open to strategic alliances [as we look] for synergies that can propel us further, beyond…Southeast Asia, such as China or even the Middle East eventually,” said Chiang.
He said Bonia has been approached by a few parties, be it for a strategic alliance or a stake in Bonia, but the group has yet to make any decisions.
The Chiang family, through Bonia Holdings Sdn Bhd, Freeway Team Sdn Bhd, and family members, collectively own half of the group. Should the group find a suitable partner, the family may have to divest part of its stake.
CIMB Research has an “add” call on the stock with a target price of RM8.11, while AmResearch has a “buy” call on the stock with a fair value of RM5.40.
Bonia moves forward with strength Group on the right track to improve net margins to 12% from 7%.
Bonia Corp Bhd is not resting on its laurels after reporting better first-half results, with margins improving considerably as a result of the group’s internal consolidation exercise over the past two years.
In an interview with The Edge Financial Daily last week, group managing director Datuk Albert Chiang said Bonia is positive in keeping up with its earnings trajectory and is on the right track in terms of its branding and pricing strategy.
“There are a lot more things which could [still] be done we look towards the long term and expand. We haven’t maximised our potential,” said Chiang.
For one, Chiang said the group is upbeat on the prospects from Asean, particularly Indonesia and Vietnam. Excluding Malaysia and Singapore, sales from Asean contributed 5.8% to group revenue for the first six months ended Dec 31, 2013 of financial year 2014 (6MFY14). Indonesia accounted for 3% of that figure.
“Indonesia itself will keep us busy for another five to eight years to come, or even 10 years, as long as their political stability is there,” Chiang said, adding that sales turnover from Indonesia has been increasing 30% year-on-year (y-o-y).
Management expects its overseas revenue contribution (outside of Malaysia and Singapore), which includes Asean, Saudi Arabia, Taiwan and Japan, to increase to 10%, from 7.6% currently. Malaysia and Singapore accounted for the bulk of the group’s revenue at 92.4%.
To put “goals” in perspective, Chiang said the group should be able to have double-digit revenue growth for FY14 ending June.
“The group also has a vision to achieve 12% in profit after tax (PAT) margin by FY15/FY16,” said Chiang, though he admitted that this is more possible to achieve than the vision of hitting RM1 billion in turnover by FY15 – as crafted in the group’s “Vision 2015”.
For 6MYF14, Bonia’s net margin stood at 9.4%, as it reported a net profit of RM33.2 million on RM354.7 million in revenue. In FY13, net profit came in at RM41.15 million on revenue of RM632.33 million, indicating a net margin of 6.5%.
“All the measures that we are embruing on now are to improve our margins. Through the consolidation exercise [of] over counter and boutique operations, we strive for quality sales [to] enhance the power and perception of our branding,” said Chiang.
Bonia’s consignment business segment operates 1,027 counters and contributes 50% to group revenue. The boutique segment operates 164 boutiques, but contributes 36% to group revenue. Export/outright segment contributes
Will this be another Padini? Just look at how the owners keep buying Bonia many months before the results were released all the way until it was released.
They already knew the results were good and will only get better. The price now is almost all time low, hopefully I can still collect more next week.
Bonia Corp Bhd's 4QFY17 net profit jumped 103.2% Y.o.Y to RM7.7 mln on improvements in gross profit margin and lower fair value adjustments on investment properties. Revenue for the quarter, however, dropped 4.0% Y.o.Y to RM153.4 mln. For FY17, cumulative net profit gained 30.2% Y.o.Y to RM31.7 mln. Revenue for the year, however, fell 8.5% Y.o.Y to RM613.2 mln. (The Edge Daily)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
khcheah84
250 posts
Posted by khcheah84 > 2017-07-03 23:28 | Report Abuse
haha is BONIA ladies and gentlemen.