Analyst Research Report Snapshot

Title:

Results Note – Bonia (ADD, maintain) - A healthy start

Price:

$23.00

Provider:

Affin Investment Bank

Date:

24 Nov 2013

Pages:

3

Type:

AcrobatPDF

Companies referenced:

BONI.KL

Available for Immediate Download
Summary:

1QFY06/14 core earnings grew +2.5% yoy to RM16m Bonia’s 1QFY06/14 topline revenue grew by +7.5% yoy to RM168.4m, driven by improved perfomance across its brand. We gathered that Sembonia had registered a strong +32% growth in revenue, while revenue from Jeco group - Braun Buffel, had grown by +16.7% yoy. Besides, Bonia's overseas sales revenue had also improved, notably Indonesia (+16% yoy) and Vietnam (+12% yoy). By segment, sales from its retailing and investment divisions surged +7.5% and +31% yoy, respectively. Notwithstanding the healthy revenue growth, Bonia’s 1QFY06/14 EBIT margin had declined by -1.9%-points to 14.6%. This is due to the sharper rise in operating expenses (+9.9% yoy) as the group had expanded its boutiques stores in Malaysia from 90 as of end-2012, to 101. The higher costs were related to additional rental costs of RM1.4m and advertising cost of RM1.9m. Taken together with a higher interest cost (+17.6% yoy), PBT were down by -13.4% yoy. Core earnings was however firmer by +2.5% yoy of RM16m, brought by the lower effective tax rate of 29.9% in 1Q14 vs 32% in 1Q13. Alhough results account for 29% and 30% of our and consensus full year forecasts, we deem the results as within expectation as 1Q is typically the strongest quarter (1Q13 accounted for 30% of FY13 profit).

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