This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Monday, May 27, 2013
Bonia- benefiting from increased consumer spending
Result Update
For QE31/3/2013, Bonia's net profit increased by 73% q-o-q or 95% y-o-y to RM13 million while revenue was mixed - down 8% q-o-q but rose 12% y-o-y to RM154 million.
Despite the q-o-q drop in revenue, the bottom-line improved q-o-q due to lower promotional activities & reduced renovation & set-up costs incurred. The company opened 5 counters in Indonesia & 3 boutiques in Vietnam in QE31/3/2013. In QE31/12/2012, the company opened 5 boutiques in Vietnam and 1 in Indonesia.
Table: Bonia's last 8 quarterly results
Chart 1: Bonia's last 17 quarterly results
Valuation
Bonia (closed at RM1.99 on May 23) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 18.4 sen). This compared favorably to Padini which trades at a PE of 17 times (based on share price of RM2.13 on May 23 and an EPS of 12.8 sen for the 4 quarters ended 31/12/2012.
Technical Outlook
As noted in my earlier post, Bonia is in an uptrend line, with support at RM1.75. Its immediate support is the 10-week SMA line at RM1.98. The intermediate downtrend line resistance at RM2.40 should cap the share price for a while.
Chart 2: MISC's weekly chart as at Mar 23, 2013 (Source: Quickcharts)
Conclusion
Based on improved financial performance, attractive valuation & positive technical outlook, Bonia could be a good stock for long-term investment.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Bonia.
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