BONIA’s share price has pulled back from a peak of RM2.86 in May 2022 which was followed by a recent rebound from a low
of RM1.77 before closing at RM2.22 yesterday.
On the chart, the stock is expected to climb further as: (i) the MACD line has crossed over the signal line, (ii) the DMI Plus
has cut above the DMI Minus, and (iii) the Parabolic SAR is showing an uptrend signal. Thus, the stock could rise further and challenge resistance levels of RM2.60 and RM2.83.
Kenanga has pegged its stop loss price set at RM1.84, which translates to a downside risk of 17%. Business-wise, BONIA is involved in the design, manufacturing, retailing, and wholesale of leatherwear, footwear, men’s apparel, and accessories. As for fundamentals BONIA reported a net profit of RM14.8m in 3QFY22 (-36% QoQ) which brought 9MFY22 net profit to
RM32.9m (+128% YoY), lifted by the reopening of economic activities and strong consumer spending during the festive
seasons.
Based on consensus forecasts, the group is expected to record a net profit of RM36.7m in FY June 2022 and RM43.8m in
FY June 2023, translating to forward PERs of 12.1x and 10.1x, respectively. BONIA’s balance sheet is backed by net cash holdings and short-term funds of RM49.7m (translating to 24.8 sen per share) as of the end of March 2022.
