BONIA (9288) - BONIA CORPORATION BERHAD Is one of “luxury international brands” on bursa, everyone knows them, and if you are married sometimes causing you a headache. But how is the fair valuation and is there any potential as a cyclical play? You know low interest rates, economy recover, wives want to go outside finally and show off their latest achievement of their husbands mental torture. Maybe Im wrong with this one mark as a cyclical play, but lets see at least how it can be valued.

As you can see on the chart it is already trending – somehow – upwards, but interest there is low, with volume very low. I know BONIA is nothing what people can go crazy about right now, as I said its more all about if you think and believe it is a recovery, cyclical and maybe also dividend play. The best should yet come.

My favorite basic ratios show BONIA has some solid cash and a low debt, equity to assets its not optimal but considered OK for me. Lets see QRs results.

The first thing stuck in my eyes more than their price tags in shops, is their NAPS and note they started to paying a very solid dividends, some people may say: Oh they cant grow anymore, so they started to pay out dividends, what I say better pay dividends than keep all the cash and don’t grow at all.

The million dollar (or ringgit if you want) question here is, will their sales and profits go up? No one can answer for sure, maybe consult your wife/gf they will know better. For valuation will use slightly optimistic prediction and hope the real numbers will be actually somehow even better.

Market Price 11 June 2021: 0.9 RM

Expected full year EPS: 11 sen

For target P/E ratio I will use 9.5, it should be discounted maybe to 8.5-9, but thanks to NAPS, high level of cash, dividends and crazy wives I will use for calculation number 9.5.

Target Fair Price: 1.05 RM

Dividend: 5 – 6 sen

As always I advice everyone to do their own homework and read financial reports.

Tip: Read about TOMEI too.

Read more on my blog: http://miloshtrading.blogspot.com

Disclosure: Im not holding BONIA.

Disclaimer: Im not a professional financial advisor, analyst, economist or an  accounter.
This is not a trading recommendation / advise, just my personal view.