dragon328Another record quarterly profit of RM21.9 million for 4QFY2022, more than 10x higher than last year. Full year operating cashflows were super strong at over RM75 million or 37 sen per share, hence supporting super high dividend payout of total 19.0 sen for FY2022.
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥Bonia dropped from a high of RM2+ to 80 sen. My assessment then was it was undervalued. After buying in, the price went up to RM 1.20. One has a sense of elation to make 50% so quickly after purchasing. A few months later, it dropped and dropped to 40 sen. The feeling was why did I not take profit at RM 1.20.
But the counter was undervalued. During the MCO, its business suffered. However, the management was proactive. They closed down the unprofitable stores. They did some internal restructuring. The listed CRG into the leap counter. Slowly, the losses were trimmed, expenses contained.
Now it is profitable, generating healthy cash flows.
The price reached a high of RM 2.80+. It has since corrected slightly.
Those able to sell at the highest or buy at the lowest and do this repeatedly must have incredible skills. More likely, no one has this unique ability. For the smart investor, capturing the long terms gains over a long time horizon is a reasonable strategy to adopt. Selling and buying based on value.
13/12/2022 9:19 PM
troy88Strong bounce back from last year's low. Congrats to those who bought during the downtrend.
Cryptoloverstable business with 6% dividend, trading at PE of 7, easy money
26/08/2023 12:36 AM
dragon328Bonia released a set of decent quarterly result for Q4 FY2023. Revenue for Q4 FY2023 dropped slightly compared to last year as Hari Raya this year came in early April 2023 so some of the festive buying was already realised in Q3 FY2023. The good thing is Bonia managed to maintain gross margin of 60% in Q4.
Operating cashflows (before working capital changes and capex) remained strong at RM71 million for FY2023. Capex was unusually high at RM48.2m in FY2023 vs RM9.7m in FY2022, as it opened 5 new boutiques and carried out rebranding effort in FY2023.
Final dividend of 2.0 sen was well expected but the special dividend of 4.0 sen fell short of market expectations, if compared to its special dividend of 12.0 sen last year. I think there are probably 2 reasons for the lower special dividend in FY2023 - 1) much higher capex incurred in FY2023, 2) the disposal of SBG is not complete yet.
Bonia has proposed to dispose off 30% stakes in SBG to its founder for RM17.6 million and this deal is expected to complete in 2H2023. I think we can look forward to a higher special dividend in FY2024 as the completion of this disposal will bring in extra 8.8 sen of cash in addition to projected operating cashflows of over 35 sen per share in FY2024.
28/08/2023 12:42 PM
Cryptoloverkinda feels like market is sleeping on this stock as well, capex is higher due to they are actively upgrading current stores into more "high end design". From what I see in some of the stores, the no. of customer visits looks good and also the business model is able to smoothly pass the cost of labour etc down to customer as like any other luxury brands. I did expect a special dividend of at least 6cents (excluding the normal dividend) but the end announcement is abit below expectation, maybe because the management wanna keep some money to expand their business. The future outlook of this remains very good
28/08/2023 4:34 PM
dragon328Ya the outlook is good with expandable business model. I was just concerned with the big capex incurred in FY2023, and am not sure of its capex plan for FY2024 and beyond.
I hope the big capex spent on upgrading existing stores in FY2023 has helped the company to maintain the gross margin of 60% and the capex spent on new stores will provide revenue growth into FY2024.
28/08/2023 5:15 PM
dragon328Bonia just won an arbitration case against an individual for their JV in Vietnam. Bonia will be getting RM21.47 million of compensation from this case.
Coupled with the proceeds of RM17 million from disposal of 30% stake in Sembonia, Bonia will have total RM38 million of extra cash proceeds in FY2024, which pave the way for a bumpy special dividend of at least 10 sen.
06/09/2023 9:46 AM
dragon328Again in Budget 2024 announcement last Friday, there was no detail as to how the proposed luxury good tax will be implemented, when it will start and above what price threshold the luxury goods will be taxed.
The only new info available is that the new luxury good tax shall be 5% to 10% to be imposed on luxury watches, jewellery and fashion items.
As most of Bonia products (handbags, watches, clothes etc) are priced below RM1,000 each, I do not expect the luxury good tax will be imposed on many Bonia products. Even if some products get taxed, I think Bonia will be able to adsorb or pass on the 5% or 10% tax, or re-priced the products, or introduce more products not subject to the new tax. Overall, I do not expect Bonia sales will be impacted much.
Still looking forward to good sales in coming Q2FY2024 and bumpy dividend for FY2024
16/10/2023 2:18 PM
Cryptoloverlike all luxury brand, the rise in cost can be easily pass to customers. current economic environment favours cash rich company with low debt. Easy buy when it is this low
20/10/2023 1:46 PM
Cryptolovernice price to accumulate more, hopefully once market sentiment improves, will be reflected on the stock price
27/10/2023 10:08 AM
dragon328Yes @Cryptolover, this is very attractive price to accumulate for long term investment.
Strong operating cashflows of over 30 sen per share every year can support dividend payouts of at least 9 sen to 15 sen a year, giving potential yields of 5% to 9%
27/10/2023 11:33 AM
Cryptolovernice recovery, my money printer once this goes to 10-15 x earnings!
06/11/2023 10:25 AM
dragon328Bonia Q1 FY2024 result is not too bad with core net profit close to RM9 million excluding extraordinary items. As expected, an interim dividend of 2.0 sen is declared.
The topline remains resilient while profit drops more substantially due to higher salary costs and operating expenses. With a gross profit margin of close to 60% and EBITDA margin close to 25%, Bonia should be able to ride through the inflationary pressure, I believe.
Looking towards a bumpy final dividend come June 2024
01/12/2023 9:49 AM
CryptoloverQ1 is historical weaker period for Bonia, but even so its top line and bottom line are growing past pre Covid levels, most importantly margins are growing really good sign.. once the consumer sentiment gets better, this company gonna easily break the previous year result with 4 times epf handout, im really bullish about this one
04/12/2023 11:13 PM
SincereStockbought a few at 1.74 after watching this review video
