COMMENTS ON BONIA CORPORATION BERHAD (9288)

FIGURE 1: BONIA CORPORATION BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2018 annual report.

1.       GENERAL INTRO: This counter core business is on supplying luxury leather items such as handbags and shoes, brands include Bonia, Sembonia, Carlo Rino

2.       NOTABLE POINTS:

a.       company has expanded to foreign markets, including Singapore, Indonesia, Hong Kong, Brunei, Taiwan, Vietnam, Japan, Thailand, China, Saudi Arabia, Cambodia, Myanmar, Phillipines, Australia, Kuwait and Egypt, with total 788 sales outlets and 188 standalone boutiques.

b.      Bonia holds 70% stake of the German brand Braun Buffel, also is licensed distributor of brands including Santa Barbara Polo & Racquet Club, Valentino Rudy, The Saville Row Company, Pierre Cardin and Renoma.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 440 million in 2018 annual report, this is a low to medium revenue company.

b.      SHARE PRICE: last few years share price on decreasing trend, decreasing from peak of ~RM1.50 in 2014 to around RM0.20 now.

c.       EARNING PER SHARE (EPS): the last few years EPS on decreasing trend, from 2014 to 2018, EPS decreased from 6.84 sen to 2.45 sen

d.      FUTURE POTENTIAL/PROSPECTS: continue to be challenging due to weak business condition that prevail in the retail market and competiton from other brands and online retailers.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 11.5 million, around 1.7% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, dividend payout of 1.25 sen per share declared, dividend yield around 5.81% based on current share price

b.      CONSISTENCY: in last five years have consistent dividend payout to shareholders, at 1.25 sen per share

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 95.6 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is presence of 7 institutional investors at top 30 major shareholders list, including Lembaga Tabung Haji, EPF, Kumpulan Wang Persaraan and few investment funds.

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