AFFIN Research said Bonia’s earnings growth was expected to be driven by its expansion in Vietnam and Indonesia, adding that these operations had been progressively contributing to its topline.
To date, it said, the group had a total store count of eight in Indonesia and 18 in Viet-nam.
Going forward, it believed that these markets would contribute positively to Bonia’s bottomline over the longer term.
Affin Research noted that besides expanding its own in-house brands, the group was also aggressively expanding its co-owned brand, Braun Buffel.
It has opened another five stores year-to-date (three in Malaysia and two in Singapore), as well as dedicated new production lines in its upcoming Malacca facility for the manufacturing of Braun Buffel products.
This new plant is expected to be commissioned by the fourth quarter with a manufacturing capacity of 20,000 bags per year.
After meeting management, Affin Research said Bonia’s growth for the next few years would be backed by increasing sales volume in tandem with improved brand recognition, regional expansion of its boutique stores and reallocation of resources to improve operating efficiencies.
It said that in light of clearer earnings visibility, it believed its forecasts were on the conservative side.
Therefore, it lowered its financial year ending June 30, 2015 (FY15) to FY16 expansion cost assumptions by 2% to 3%, which raised the company’s earnings per share forecasts for the period by 7% to 18%.
Given Bonia’s better prospects, it also raised its target price-to-earnings ratio multiple to 16 times for 2015 and lifted its 12-month target price to RM1.61 from RM1.36.
Chartwise : Very bad, totally out of support. But this is normal for any stock that has undergone split or bonus issue. Outstanding pointer: RSI currently at 18%. This means the stock is oversold MACD : Price coming down aggressively and MACD trending up to neutral line. This is term as 'bullish divergence' Bollinger Band: downward price movement causes Bollinger to expand negatively 1st. day at 26%, 2nd. day increase to 43% and today contracted to 20%. Bollinger band 20 is calling for price to move up as it is now trending outside the band like a lost child.
Expectation: With all the reason stated above, the expectation is for the price to start trending higher. The 1st. thing to expect is to get the price move up within the BB20 zone, meaning the closing price must move higher. If this is fulfill and the Bollinger 10 begins to contract, the price must keep moving up above the Bollinger middle band at 1.39. From here the price must keep on sustaining higher than 1.39 to keep it in positive momentum. If the trending is in accordance to what is stated, there is a great chance for the stock to move higher and the MACD moving up closer to the neutral line. The price position must sit above the Bollinger middle band at least at 1.39.
Conclusion: If the describe scenario takes place as expected, there is a positive chance for this stock to turn bullish once the MACD signal line reaches the neutral zone and this may happen within 2 weeks time frame.
If the price is not closing above 1.39, preferably not to buy yet.
It has been speculated that global luxury giant Louis Vuitton Moet Hennessy (LVMH), via its Singapore-based private equity arm L Capital Asia, was in talks with Bonia to acquire a stake in Malaysia’s leading brand for leather accessories.
Chiang, however, is quick to point that for the past two years, Bonia has been talking to various investors, not only LVMH.
“Private equity funds have been aggressive in this part of the region, but we felt that we have yet to maximised our own value.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hw0706
837 posts
Posted by hw0706 > 2014-08-28 12:10 | Report Abuse
some fund is selling