Showing posts with label Bonia. Show all posts
Showing posts with label Bonia. Show all posts
Sunday, 25 February 2024
Friday, 22 September 2023
Thursday, 14 September 2023
Thursday, 19 July 2018
Neutral on Bonia’s proposed demerger
Neutral on Bonia’s proposed demerger
February 10, 2018, Saturday
KUCHING: Bonia Corporation Bhd’s (Bonia) proposed demerger and subsequent listing of wholly-owned subsidiary CRG Incorporated Sdn Bhd (CRG) on the LEAP Market of Bursa Malaysia Securities Bhd has garnered neutral views from analysts.
According to AmInvestment Bank Bhd (AmInvestment Bank), the intended objective is likely to position Bonia with greater visibility and coherence of earnings drivers.
AmInvestment Bank anticipated that CRG may command lower valuations than Bonia seeing the LEAP Market is less liquid and has a lower pool of investable institutional investors, which effectively translate into demand.
“Should CRG command lower valuations than Bonia, it could be value destructive to existing Bonia shareholders in the near term,” the research firm said.
“We are neutral over the development. While we appreciate greater visibility and coherence of Bonia earnings drivers excluding CRG over the longer term, it may be offset by the potential near-term restructuring drag.”
All in, AmInvestment Bank maintained its ‘buy’ recommendation and fair value of RM0.67 per share.
The research firm noted that valuations are pegged to financial year 2019 (FY19) with a target price earnings (P/E) of 14.5-fold, in line with Bonia’s five-year historical average P/E.
“We continue to like Bonia’s flagship brands, Braun Buffel and Bonia and its turnaround-led growth,” the research firm said.
“Meanwhile, valuations are attractive for a regional luxury brand going through an upcycle in consumer spending.”
http://www.theborneopost.com/2018/02/10/neutral-on-bonias-proposed-demerger/
February 10, 2018, Saturday
KUCHING: Bonia Corporation Bhd’s (Bonia) proposed demerger and subsequent listing of wholly-owned subsidiary CRG Incorporated Sdn Bhd (CRG) on the LEAP Market of Bursa Malaysia Securities Bhd has garnered neutral views from analysts.
According to AmInvestment Bank Bhd (AmInvestment Bank), the intended objective is likely to position Bonia with greater visibility and coherence of earnings drivers.
AmInvestment Bank anticipated that CRG may command lower valuations than Bonia seeing the LEAP Market is less liquid and has a lower pool of investable institutional investors, which effectively translate into demand.
“Should CRG command lower valuations than Bonia, it could be value destructive to existing Bonia shareholders in the near term,” the research firm said.
“We are neutral over the development. While we appreciate greater visibility and coherence of Bonia earnings drivers excluding CRG over the longer term, it may be offset by the potential near-term restructuring drag.”
All in, AmInvestment Bank maintained its ‘buy’ recommendation and fair value of RM0.67 per share.
The research firm noted that valuations are pegged to financial year 2019 (FY19) with a target price earnings (P/E) of 14.5-fold, in line with Bonia’s five-year historical average P/E.
“We continue to like Bonia’s flagship brands, Braun Buffel and Bonia and its turnaround-led growth,” the research firm said.
“Meanwhile, valuations are attractive for a regional luxury brand going through an upcycle in consumer spending.”
http://www.theborneopost.com/2018/02/10/neutral-on-bonias-proposed-demerger/
Saturday, 23 June 2012
Investor's Checklist: Consumer Services
Most consumer services concepts fail in the long run, so any investment in a company in the speculative or aggressive growth stage of the business life cycle needs to be monitored more closely than the average stock investment.
Beware of stocks that have already priced in lofty growth expectations. You can make money if you get in early enough, but you can also lose your shirt on the stock's rapid downslide.
The sector is rife with low switching costs. Companies that establish store loyalty or store dependence are very attractive. Tiffany's is a good example; it faces limited competition in the retail jewelery market.
Make sure to compare inventory and payables turns to determine which retailers are superior operators. Companies that know what their customers want and how to exploit their negotiating power are more likely to make solid bets in the sector.
Keep an eye on those off-balance sheet obligations. Many retailers have little or no debt on the books, but their overall financial health might not be that good.
Look for a buying opportunity when a solid company releases poor monthly or quarterly sales numbers. Many investors overreact to one month's worth of bad same-store sales results, and the reason might just be bad weather or an overly difficult comparison to the prior-year period. Focus on the fundamentals of the business and not the emotion of the stock.
Companies also tend to move in tandem when news comes out about the economy. Look for a chance to pick up shares of a great retailer when the entire sector falls - keep that watch list handy.
Ref: The Five Rules for Successful Stock Investing by Pat Dorsey
Read also:
Investor's Checklist: A Guided Tour of the Market...
Beware of stocks that have already priced in lofty growth expectations. You can make money if you get in early enough, but you can also lose your shirt on the stock's rapid downslide.
The sector is rife with low switching costs. Companies that establish store loyalty or store dependence are very attractive. Tiffany's is a good example; it faces limited competition in the retail jewelery market.
Make sure to compare inventory and payables turns to determine which retailers are superior operators. Companies that know what their customers want and how to exploit their negotiating power are more likely to make solid bets in the sector.
Keep an eye on those off-balance sheet obligations. Many retailers have little or no debt on the books, but their overall financial health might not be that good.
Look for a buying opportunity when a solid company releases poor monthly or quarterly sales numbers. Many investors overreact to one month's worth of bad same-store sales results, and the reason might just be bad weather or an overly difficult comparison to the prior-year period. Focus on the fundamentals of the business and not the emotion of the stock.
Companies also tend to move in tandem when news comes out about the economy. Look for a chance to pick up shares of a great retailer when the entire sector falls - keep that watch list handy.
Ref: The Five Rules for Successful Stock Investing by Pat Dorsey
Read also:
Investor's Checklist: A Guided Tour of the Market...
Tuesday, 29 May 2012
Bonia (29.5.2012)
| Financial | EPS | Dividend | NTA | ttm-EPS | Qtr | |||
| Date | Quarter | (Cent) | (Cent) | (RM) | (Cent) | No. | ||
| 29/05/2012 | 31/03/2012 | 3.32 | 0 | 1.33 | 23.81 | 3 | ||
| 23/02/2012 | 31/12/2011 | 6.55 | 0 | 1.29 | 26.33 | 2 | ||
| 29/11/2011 | 30/09/2011 | 9.93 | 0 | 1.25 | 24.33 | 1 | ||
| 26/08/2011 | 30/06/2011 | 4.01 | 2.5 | 1.15 | 19.37 | 4 | ||
| 25/05/2011 | 31/03/2011 | 5.84 | 2.5 | 1.13 | 20.37 | 3 | ||
| 23/02/2011 | 31/12/2010 | 4.55 | 0 | 1.07 | 18.91 | 2 | ||
| 24/11/2010 | 30/09/2010 | 4.97 | 0 | 1.04 | 17.91 | 1 | ||
| 30/08/2010 | 30/06/2010 | 5.01 | 5 | 1.01 | 16.49 | 4 | ||
| 26/05/2010 | 31/03/2010 | 4.38 | 0 | 0.96 | 14.21 | 3 | ||
| 25/02/2010 | 31/12/2009 | 3.55 | 0 | 0.92 | 12.02 | 2 | ||
| 26/11/2009 | 30/09/2009 | 3.55 | 0 | 0.92 | 10.82 | 1 | ||
| 28/08/2009 | 30/06/2009 | 2.73 | 4 | 0.88 | 10.22 | 4 | ||
| 28/05/2009 | 31/03/2009 | 2.19 | 0 | 0.85 | 9.43 | 3 | ||
| 27/02/2009 | 31/12/2008 | 2.35 | 0 | 0.87 | 10.65 | 2 | ||
| 24/11/2008 | 30/09/2008 | 2.95 | 0 | 0.84 | 12.8 | 1 | ||
| 28/08/2008 | 30/06/2008 | 1.94 | 2.5 | 0.81 | 14.22 | 4 | ||
| 26/05/2008 | 31/03/2008 | 3.41 | 0 | 0.8 | 17.08 | 3 | ||
| 20/02/2008 | 31/12/2007 | 4.5 | 0 | 0.76 | 2 | |||
| 15/11/2007 | 30/09/2007 | 4.37 | 0 | 0.74 | 1 | |||
| 27/08/2007 | 30/06/2007 | 4.8 | 3 | 0.7 | 4 |
ttm-EPS 23.81 sen
LFY Dividend 5 sen
Price RM 2,33
PE 9.8x
DY 2.15%
Wednesday, 7 December 2011
Recession-proof fashion retailers do better than others during a bear market
Recession-proof fashion retailers do better than others during a bear market
Written by Lim Siew May of theedgemalaysia.com
Tuesday, 06 December 2011 09:43
KUALA LUMPUR: In Malaysia, only three home-grown fashion brands — Padini Holdings Bhd, Bonia Corp Bhd and Voir Holdings Bhd — are listed on Bursa Malaysia, but they have been surprisingly resilient. Each remained profitable during the 2008 financial crisis.
Padini Holdings Bhd, which is widely covered by analysts, was the first retailer to list, doing so in 1998. It retails fashionwear and accessories through its brands — Seed, Vincci, P&Co, PDI, Padini Authentics Miki and Padini.
In early November, it boasted the highest market capitalisation [among the three] of RM657.91 million, and profits have been growing consistently y-o-y from 2001 to 2010. It has consistently paid out dividends of at least 30% of its net income, and for FY2011, it is expected to distribute RM26.3 million (34.7%) out of its net profit of RM75.7 million.
The market capitalisation of Bonia Corp Bhd, which retails branded leatherwear, footwear as well as men’s apparel and accessories, is about half of Padini’s at RM328.56 million. It made a net profit of RM33.55 million for FY2010. The company owns the Bonia, Sembonia and Carlo Rino brands and the licence for international labels including Santa Barbara Polo and Valentino Rudy.
Voir Holdings Bhd has the smallest market capitalisation of RM60.60 million. The company owns brands such as VOIR, Applemints and SODA as well as licensed international brand Diadora. Besides selling women’s apparel, shoes and accessories, the company also designs and sells clothes for men and children. It made a net profit of RM7.7 million for FY2010.
Compared with luxury fashion houses listed in Hong Kong, local fashion stocks are much cheaper. The three companies are trading at price-earning ratios (PERs) of between 8.42 times and 8.75 times. In comparison, Italian luxury brand Prada SpA, which listed in Hong Kong in June, is trading at 28 times.
Recession-proof?
The possibility of a double-dip recession for the global economy is certainly alarming but the stock market will offer great bargains. Certain resilient industries do better than others during a bear market.
There are two opposing schools of thought on the prospects of non-utilitarian stocks such as fashion during a recession. On one hand, branded wear can be seen as luxury, not a basic need, which is eliminated from a tightened budget.
The opposing view is that people tend to seek an escape from hard times and are more likely to indulge in shopping. The latter helps to explain the resilience of Padini, Voir and Bonia during the last financial crisis.
An analyst, who requests anonymity, is sanguine about the local fashion stocks. “Malaysians love sales. Fashion companies can spur customer spending via sales and promotions, even though they do incur marketing costs. I believe that our middle-class fashion range will fare better than high-end fashion stocks in Hong Kong, given their affordability.”
A consumer-sector analyst, however, is cautious: “Fashion is not a staple. I believe the sector will be affected by the current conditions in the global economy. People will hold back during uncertain times.”
Here are ways to evaluate a solid fashion stock, regardless of whether we will see a global.
Branding counts
Branding is said to be the most important component of a fashion retailer. “Everyone has heard of Padini. It is available at almost every retail outlets across the Klang Valley, and people usually prefer to stick to an established brand,” says the first analyst.
“Padini offers a wide range of products for various market segments, and they are affordably priced. When a fresh graduate needs to buy working clothes, he buys from Padini instead of foreign fashion brands such as Zara, which costs 50% more.”
Is the company actively growing its brand? This is reflected by mergers and acquisitions as well as decisions to spend 2% to 3% of its revenue on marketing initiatives and/or aggressive openings of more outlets. “Organic growth will not result in a premium valuation for fashion stocks,” says the analyst.
A HwangDBS Vickers Research report indicates that there is a correlation between a newly opened store and the company’s revenue stream. For instance, when Padini expanded its retail space by more than 50%, or 143,955 sq ft, in 2008.
Padini is setting its sights on rural areas like Sabah, where there is enhanced purchasing power. The group has started selling its affordably priced garments in the Brands Outlet in Suria Sabah in Kota Kinabalu, 1st Avenue Mall in Penang, as well as 1Borneo Shopping Mall and 1 Multi-Concept Store in Sabah.
“Residents don’t really have access to swanky and established malls. I believe Padini should perform relatively well there,” says the analyst. Brands Outlet, a Padini standalone store, has been instrumental in driving the company’s revenue growth, contributing a compounded annual growth rate of 85% since its debut in 2007, says the HwangDBS Vickers Research report.
Starting a standalone store is also a good move for the fashion company. “When you move beyond [renting space in a department store], you will have more space and better control over your operations. And if your brand is the anchor tenant, you can probably negotiate for favourable rental terms,” says the consumer-sector analyst.
Increasing same-store sales
Same-store sales are used in the retail industry to reflect the difference in revenue generated by the retail chain’s existing outlets over a certain period of time. This statistic differentiates between sales generated from new stores and those from existing stores.
“This metric shows the organic growth of a store. New outlets usually reach their peaks after three or four years, then you won’t see fantastic double-digit growth,” says the analyst.
Growth of same-store sales reflects the management’s acumen in predicting fashion trends while the reverse signifies inaccurate expectations or a saturated market.
Unfortunately, growth figures are not readily accessible to retail investors, although analyst’s reports or news reports may feature them. To compensate, evaluate the company’s financial performance.
“It all boils down to the company’s ability to give its customers what they want. Look at the big picture. You can assess its ability to meet customers’ demand through the sales figures in the financial statements. You can also go to the stores and observe the foot traffic,” suggests the analyst.
Expect months of lower sales. According to HwangDBS Vickers Research’s report, Padini sees lower sales during non-festive seasons, such as in 2Q2011. However, the report explains that this is a common characteristic of the retail industry.
Stocks and threats
Holding a high volume of inventory for a long time is not a good sign for a fashion retailer. Inventory takes up storage space and affects liquidity. High inventory may also compel a company to significantly mark down its out-of-season stocks, leading to compressed margins.
To cater for festive celebrations such as Christmas and Chinese New Year, there will be a surge in inventory, the analyst says. “The inventory volume depends heavily on the management’s view. If it takes a sanguine view of the economy, it will increase stocks accordingly.
“However, if a great deal of the inventory in December does not translate into sales by March or April, it can mean a weak quarterly financial performance for the company.”
Rising raw-material (such as cotton) costs and the minimum wage hike in China are some of the key threats facing fashion retailers around the world. Gross margin, which measures the percentage of each ringgit of revenue retained as gross profit, is used to evaluate the management’s ability to manage cost.
The higher it is, the more the company is able to retain each ringgit of revenue to meet other business costs and obligations. A reduced gross margin can be a result of plunging revenue and/or increased business costs — all of which impact earnings.
http://www.theedgemalaysia.com/personal-finance/197332-malaysians-love-shopping-so-recession-proof-fashion-retailers-do-better-than-others-during-a-bear-market.html
Written by Lim Siew May of theedgemalaysia.com
Tuesday, 06 December 2011 09:43
KUALA LUMPUR: In Malaysia, only three home-grown fashion brands — Padini Holdings Bhd, Bonia Corp Bhd and Voir Holdings Bhd — are listed on Bursa Malaysia, but they have been surprisingly resilient. Each remained profitable during the 2008 financial crisis.
Padini Holdings Bhd, which is widely covered by analysts, was the first retailer to list, doing so in 1998. It retails fashionwear and accessories through its brands — Seed, Vincci, P&Co, PDI, Padini Authentics Miki and Padini.
In early November, it boasted the highest market capitalisation [among the three] of RM657.91 million, and profits have been growing consistently y-o-y from 2001 to 2010. It has consistently paid out dividends of at least 30% of its net income, and for FY2011, it is expected to distribute RM26.3 million (34.7%) out of its net profit of RM75.7 million.
The market capitalisation of Bonia Corp Bhd, which retails branded leatherwear, footwear as well as men’s apparel and accessories, is about half of Padini’s at RM328.56 million. It made a net profit of RM33.55 million for FY2010. The company owns the Bonia, Sembonia and Carlo Rino brands and the licence for international labels including Santa Barbara Polo and Valentino Rudy.
Voir Holdings Bhd has the smallest market capitalisation of RM60.60 million. The company owns brands such as VOIR, Applemints and SODA as well as licensed international brand Diadora. Besides selling women’s apparel, shoes and accessories, the company also designs and sells clothes for men and children. It made a net profit of RM7.7 million for FY2010.
Compared with luxury fashion houses listed in Hong Kong, local fashion stocks are much cheaper. The three companies are trading at price-earning ratios (PERs) of between 8.42 times and 8.75 times. In comparison, Italian luxury brand Prada SpA, which listed in Hong Kong in June, is trading at 28 times.
Recession-proof?
The possibility of a double-dip recession for the global economy is certainly alarming but the stock market will offer great bargains. Certain resilient industries do better than others during a bear market.
There are two opposing schools of thought on the prospects of non-utilitarian stocks such as fashion during a recession. On one hand, branded wear can be seen as luxury, not a basic need, which is eliminated from a tightened budget.
The opposing view is that people tend to seek an escape from hard times and are more likely to indulge in shopping. The latter helps to explain the resilience of Padini, Voir and Bonia during the last financial crisis.
An analyst, who requests anonymity, is sanguine about the local fashion stocks. “Malaysians love sales. Fashion companies can spur customer spending via sales and promotions, even though they do incur marketing costs. I believe that our middle-class fashion range will fare better than high-end fashion stocks in Hong Kong, given their affordability.”
A consumer-sector analyst, however, is cautious: “Fashion is not a staple. I believe the sector will be affected by the current conditions in the global economy. People will hold back during uncertain times.”
Here are ways to evaluate a solid fashion stock, regardless of whether we will see a global.
Branding counts
Branding is said to be the most important component of a fashion retailer. “Everyone has heard of Padini. It is available at almost every retail outlets across the Klang Valley, and people usually prefer to stick to an established brand,” says the first analyst.
“Padini offers a wide range of products for various market segments, and they are affordably priced. When a fresh graduate needs to buy working clothes, he buys from Padini instead of foreign fashion brands such as Zara, which costs 50% more.”
Is the company actively growing its brand? This is reflected by mergers and acquisitions as well as decisions to spend 2% to 3% of its revenue on marketing initiatives and/or aggressive openings of more outlets. “Organic growth will not result in a premium valuation for fashion stocks,” says the analyst.
A HwangDBS Vickers Research report indicates that there is a correlation between a newly opened store and the company’s revenue stream. For instance, when Padini expanded its retail space by more than 50%, or 143,955 sq ft, in 2008.
Padini is setting its sights on rural areas like Sabah, where there is enhanced purchasing power. The group has started selling its affordably priced garments in the Brands Outlet in Suria Sabah in Kota Kinabalu, 1st Avenue Mall in Penang, as well as 1Borneo Shopping Mall and 1 Multi-Concept Store in Sabah.
“Residents don’t really have access to swanky and established malls. I believe Padini should perform relatively well there,” says the analyst. Brands Outlet, a Padini standalone store, has been instrumental in driving the company’s revenue growth, contributing a compounded annual growth rate of 85% since its debut in 2007, says the HwangDBS Vickers Research report.
Starting a standalone store is also a good move for the fashion company. “When you move beyond [renting space in a department store], you will have more space and better control over your operations. And if your brand is the anchor tenant, you can probably negotiate for favourable rental terms,” says the consumer-sector analyst.
Increasing same-store sales
Same-store sales are used in the retail industry to reflect the difference in revenue generated by the retail chain’s existing outlets over a certain period of time. This statistic differentiates between sales generated from new stores and those from existing stores.
“This metric shows the organic growth of a store. New outlets usually reach their peaks after three or four years, then you won’t see fantastic double-digit growth,” says the analyst.
Growth of same-store sales reflects the management’s acumen in predicting fashion trends while the reverse signifies inaccurate expectations or a saturated market.
Unfortunately, growth figures are not readily accessible to retail investors, although analyst’s reports or news reports may feature them. To compensate, evaluate the company’s financial performance.
“It all boils down to the company’s ability to give its customers what they want. Look at the big picture. You can assess its ability to meet customers’ demand through the sales figures in the financial statements. You can also go to the stores and observe the foot traffic,” suggests the analyst.
Expect months of lower sales. According to HwangDBS Vickers Research’s report, Padini sees lower sales during non-festive seasons, such as in 2Q2011. However, the report explains that this is a common characteristic of the retail industry.
Stocks and threats
Holding a high volume of inventory for a long time is not a good sign for a fashion retailer. Inventory takes up storage space and affects liquidity. High inventory may also compel a company to significantly mark down its out-of-season stocks, leading to compressed margins.
To cater for festive celebrations such as Christmas and Chinese New Year, there will be a surge in inventory, the analyst says. “The inventory volume depends heavily on the management’s view. If it takes a sanguine view of the economy, it will increase stocks accordingly.
“However, if a great deal of the inventory in December does not translate into sales by March or April, it can mean a weak quarterly financial performance for the company.”
Rising raw-material (such as cotton) costs and the minimum wage hike in China are some of the key threats facing fashion retailers around the world. Gross margin, which measures the percentage of each ringgit of revenue retained as gross profit, is used to evaluate the management’s ability to manage cost.
The higher it is, the more the company is able to retain each ringgit of revenue to meet other business costs and obligations. A reduced gross margin can be a result of plunging revenue and/or increased business costs — all of which impact earnings.
http://www.theedgemalaysia.com/personal-finance/197332-malaysians-love-shopping-so-recession-proof-fashion-retailers-do-better-than-others-during-a-bear-market.html
Monday, 17 January 2011
A Brief Look at Hing Yiap Group Bhd. & the take-over offer by Everest Hectare
Hing Yiap Group Berhad
Business Description:
Hing Yiap Group Berhad (Hing Yiap) is a Malaysia-based company engaged in property and investment holding, textile knitting and the manufacture of garments. The Company operates in three segments:
Current Price (7/1/2011): 1.74
2010 Sales 134,827,402
Employees: 1,675
Market Cap: 72,709,380
Shares Outstanding: 41,787,000
Closely Held Shares: 39,240,280
Year DPS EPS
2005 1.1 -4.1
2006 2.2 3.4
2007 3.7 10.8
2008 7.5 18.8
2009 8.1 22.4
1Q10 0.0 20.44 NAV 2.3500
2010 7.5E 29.3P (SPG)
Historical
5 Yr
PE range 4.8 - 8.4
DY range 10.3% - 5.5%
Estimated EPS for 2010 (SPG) = 29.3 sen
At price of 1.74, its forward PE = 1.74 / 0.293 = 5.9 x
Un-audited financial results for the financial period ended 30 September 2010.
Balance Sheet on 30.9.2010
Non-Current Assets 32.708 m
PPE 21.070m
Intangible assets 7.393m
Deferred tax assets 2.177m
Held-to-maturity investment 1.004m
Available-for-sale investment 1.064m
Current Assets 112.136m
Total Asset 144.844m
Shareholders' Equity 98.075m
Share capital 41.787m
Reserves 56.288m
Non-Current Liabilities 0.338m
Current Liabilities 46.631m
Payables 41.421m
Hire purchase payables 0.636m
Short term borrowings 4.374m
Total Liabilities 46.769m
Total Equity and Liabilities 144.844m
Net assets per share 2.35
Income Statement 1Q ending 30.9.2010
Revenue 45.507m
Profit from operations 11.564m
PBT 11.509m
PAT 8.541m
EPS 20.44 sen
Weighted average no. of ordinary shares 41.787m
Cash flow statement for period ended 30.9.2010
PBT 11.509m
Operating profit before WCC 12.276m
Cash from operations (4.868m)
Net CFO (6.037m)
CFI (1.426m)
CFF (0.260m)
17.1.2011
HING YIAP GROUP BERHAD ["COMPANY"]
RECEIPT OF NOTICE OF UNCONDITIONAL TAKE-OVER OFFER FROM RHB INVESTMENT BANK BERHAD ON BEHALF OF EVEREST HECTARE SDN BHD ["EVEREST" OR OFFEROR"]
The Board of Directors of the Company ["Board"] wishes to announce the following:
1. On 17 January 2011, Everest Hectare Sdn Bhd had acquired an aggregate of 20,900,000 ordinary shares of RM1.00 each in the Company representing 50.02% of the issued and paid-up share capital of the Company, for a cash consideration of RM1.50 per share via an unconditional share sale agreement entered into with Chi Kuei Yung Sdn Bhd, Chi Oi Meng, Khoo Henn Kuan and Khoo Henn Kiew.
2. The Company has today received a notice of unconditional take-over offer dated 17 January 2011 ["Notice"] from RHB Investment Bank Berhad on behalf of Everest Hectare Sdn Bhd to acquire all the remaining ordinary shares of RM1.00 each in the Company not already owned by Everest ("Offer Shares") for a cash consideration of RM1.50 for each Offer Share ("Offer").
The Board of Directors of the Company is not seeking any alternative person to make a take-over offer for the Company's shares.
Notice of Unconditional Take-Over Offer of Hing Yiap
Main points:
It is the intention of the Offeror to maintain the listing status of Hing Yiap.
The Offeror does not intend to invoke Section 222 of the CMSA to compulsorily acquire any outstanding Offer Shares for which valid acceptances hve not been received.
Information on the Offeror
Everest Hectare was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 2 July 2010.
The present directors and shareholders of Everest Hectare are Ng Chin Huat and Yap Su P'ing who each holds 50% equity interest in Everest Hectare.
Ng Chin Huat is currently the Managing Director and the major shareholder of Asia Brands Corporation Berhad, an investment holding company in which its subsidiaries are primarily involved in marketing, trading and retailing of lingerie, ladies' casual wear, children's wear, care and related products. Some of the brands owned and currently carried by them include Anakku, Audrey, Disney and Mickey Mouse & Friends.
Business Description:
Hing Yiap Group Berhad (Hing Yiap) is a Malaysia-based company engaged in property and investment holding, textile knitting and the manufacture of garments. The Company operates in three segments:
- manufacturing, which includes textile knitting and the manufacture of garments;
- trading, which includes wholesaling, retailing and distribution of ready-made sports and casual wear, women intimate apparel and related accessories, and
- food and beverage, which includes the rights to operate gourmet chocolate cafe and retail outlets known as Theobroma Chocolate Lounge.
Current Price (7/1/2011): 1.74
2010 Sales 134,827,402
Employees: 1,675
Market Cap: 72,709,380
Shares Outstanding: 41,787,000
Closely Held Shares: 39,240,280
| Announcement Date | Financial Yr. End | Qtr | Period End | Revenue RM '000 | Profit/Lost RM'000 | EPS | Amended | ||||||
| 24-Nov-10 | 30-Jun-11 | 1 | 30-Sep-10 | 45,507 | 8,541 | 20.44 | Amended | ||||||
| 26-Aug-10 | 30-Jun-10 | 4 | 30-Jun-10 | 25,140 | 574 | 1.37 | - | ||||||
| 27-May-10 | 30-Jun-10 | 3 | 31-Mar-10 | 34,126 | 2,486 | 5.95 | - | ||||||
| 27-Aug-09 | 30-Jun-09 | 4 | 30-Jun-09 | 23,790 | 199 | 0.48 | - | ||||||
Year DPS EPS
2005 1.1 -4.1
2006 2.2 3.4
2007 3.7 10.8
2008 7.5 18.8
2009 8.1 22.4
1Q10 0.0 20.44 NAV 2.3500
2010 7.5E 29.3P (SPG)
Historical
5 Yr
PE range 4.8 - 8.4
DY range 10.3% - 5.5%
Estimated EPS for 2010 (SPG) = 29.3 sen
At price of 1.74, its forward PE = 1.74 / 0.293 = 5.9 x
Un-audited financial results for the financial period ended 30 September 2010.
Balance Sheet on 30.9.2010
Non-Current Assets 32.708 m
PPE 21.070m
Intangible assets 7.393m
Deferred tax assets 2.177m
Held-to-maturity investment 1.004m
Available-for-sale investment 1.064m
Current Assets 112.136m
Inventories 69.544m
Receivables 34.258m
Cash & bank balances 8.334m
Total Asset 144.844m
Shareholders' Equity 98.075m
Share capital 41.787m
Reserves 56.288m
Non-Current Liabilities 0.338m
Current Liabilities 46.631m
Payables 41.421m
Hire purchase payables 0.636m
Short term borrowings 4.374m
Total Liabilities 46.769m
Total Equity and Liabilities 144.844m
Net assets per share 2.35
Income Statement 1Q ending 30.9.2010
Revenue 45.507m
Profit from operations 11.564m
PBT 11.509m
PAT 8.541m
EPS 20.44 sen
Weighted average no. of ordinary shares 41.787m
Cash flow statement for period ended 30.9.2010
PBT 11.509m
Operating profit before WCC 12.276m
Cash from operations (4.868m)
Net CFO (6.037m)
CFI (1.426m)
CFF (0.260m)
17.1.2011
HING YIAP GROUP BERHAD ["COMPANY"]
RECEIPT OF NOTICE OF UNCONDITIONAL TAKE-OVER OFFER FROM RHB INVESTMENT BANK BERHAD ON BEHALF OF EVEREST HECTARE SDN BHD ["EVEREST" OR OFFEROR"]
The Board of Directors of the Company ["Board"] wishes to announce the following:
1. On 17 January 2011, Everest Hectare Sdn Bhd had acquired an aggregate of 20,900,000 ordinary shares of RM1.00 each in the Company representing 50.02% of the issued and paid-up share capital of the Company, for a cash consideration of RM1.50 per share via an unconditional share sale agreement entered into with Chi Kuei Yung Sdn Bhd, Chi Oi Meng, Khoo Henn Kuan and Khoo Henn Kiew.
2. The Company has today received a notice of unconditional take-over offer dated 17 January 2011 ["Notice"] from RHB Investment Bank Berhad on behalf of Everest Hectare Sdn Bhd to acquire all the remaining ordinary shares of RM1.00 each in the Company not already owned by Everest ("Offer Shares") for a cash consideration of RM1.50 for each Offer Share ("Offer").
The Board of Directors of the Company is not seeking any alternative person to make a take-over offer for the Company's shares.
Notice of Unconditional Take-Over Offer of Hing Yiap
Main points:
It is the intention of the Offeror to maintain the listing status of Hing Yiap.
The Offeror does not intend to invoke Section 222 of the CMSA to compulsorily acquire any outstanding Offer Shares for which valid acceptances hve not been received.
Information on the Offeror
Everest Hectare was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 2 July 2010.
The present directors and shareholders of Everest Hectare are Ng Chin Huat and Yap Su P'ing who each holds 50% equity interest in Everest Hectare.
Ng Chin Huat is currently the Managing Director and the major shareholder of Asia Brands Corporation Berhad, an investment holding company in which its subsidiaries are primarily involved in marketing, trading and retailing of lingerie, ladies' casual wear, children's wear, care and related products. Some of the brands owned and currently carried by them include Anakku, Audrey, Disney and Mickey Mouse & Friends.
Tuesday, 12 October 2010
Malaysian Fashion stocks look attractive
| Fashion stocks look attractive |  |  |  |
| Written by Sam Koh | |||||||
| Monday, 11 October 2010 14:57 | |||||||
 | |||||||
| But views have noticeably improved over the past few years with the rise of homegrown fashion houses like Padini Holdings Bhd, Bonia Corp Bhd and Voir Holdings Bhd. These companies have successfully created an entire range of household brand names for ladies’ wear, men’s wear, kids’ apparel, sportswear as well as accessories and home furnishings. Flagship brands for Padini include Vincci, Padini, SEED and Padini Authentics while Voir’s stable of 14 in-house brands includes VOIR, SODA and Applemints. Bonia has its namesake brand as well as Carlo Rino and Sembonia. The company is also a distributor and dealer for brands like Santa Barbara Polo & Racquet Club, Carven and Jeep. Riding high on nation’s growth A key factor for these success stories is Malaysia’s strong economic growth. The gradual shift from an agriculture- to manufacturing- and now, services-based economy has resulted in rising disposable incomes. Growing affluence and persistently low unemployment rates have, in turn, led to burgeoning consumer-driven sectors.  Homegrown fashion houses like Padini, VOIR and Bonia, whose handbags and footwear are shown here, are benefiting from the country’s strong economic growth, which has resulted in rising disposable incomes. The three listed retailers have all registered rising sales over the past few years, remaining profitable even during the recent recession. Case in point, total consumption (both the private and public sectors) as a percentage of GDP rose from 54% in 2000 to 68% in 2009. The retail and wholesale trade sub-segment increased from RM39.96 billion to RM69.5 billion over the same period, accounting for 13.3% of the country’s economic activity today, up from 11.2% in 2000. In particular, the rapid rise of the middle-class is the primary driving force behind the growth in domestic consumption. It is no surprise then that most of the local fashion houses are focused on this market segment. The three retailers listed on Bursa Malaysia — Padini, Bonia and Voir — have all registered rising sales over the past few years. Sales grew even during the recent global downturn, underlining the relative resilience in domestic consumer spending. Bonia’s sales grew from RM192 million in FY June 2005 to RM315 million in FY10, which is equivalent to an annual compounded growth exceeding 13%. Over the same period, Padini expanded at an even faster pace of nearly 17% per annum. Voir, the smallest of the three, saw sales expand from RM93 million in 2004 to RM150 million last year. All three companies remained profitable through the worst of the recession. Cautiously optimistic going forward Having said that, some retailers are wary of potential speed bumps ahead. The gradual removal of subsidies has led to rising prices and the failure of wages to rise in tandem will result in lower purchasing power. Recent government proposals to curb household debt and speculation in the property sector as well as the impending imposition of the goods and services tax (GST) are likely to further dampen consumer consumption. That explains why Chan Kwai Heng, executive director of Padini, is adopting a cautious stance. “My personal feeling is that Malaysian consumers want to see if growth is sustainable before (deciding what to do with their disposable incomes),” he said. Chan added that recent announcements such as the curb on credit card availability, real estate cap on loan-to-value ratio proposal, subsidy removal and GST were sending mixed signals to consumers.
Expansion will continue to drive growth In its last financial year ended June 2010, Padini opened six new outlets — one Vincci, two Vincci+, a Padini Concept Store and two Brands Outlets. Going forward, the company intends to focus on the Brands Outlet line, which is targeted at value-conscious customers. There are plans to add three Brands Outlet stores this year, one of which just opened in Sunway Pyramid this week. The company expects to lay down some RM5 million for capital expenditure in FY11. Bonia too has made moves to widen its primarily middle to upper-middle class market. In the past one to two years, the company has introduced more affordable and value-for-money brands such as Valentino Rudy, CR2 and CR Xchange, in response to the global downturn. Similarly, VOIR is also keen to broaden its market reach by expanding its range of products targeting different segments of the market, in addition to new outlets. “Going forward, we see an increasing trend towards the medium-end with a slight bias towards a medium-high market,” said Ham Hon Kit, executive director of VOIR Group of companies, noting the population, improved economy and government plans as contributing factors. “In a medium market you have a fair share of the population. Recently, we launched our sub-label Noir, which delivers to the medium-high segment,” said Ham, who described VOIR largely as a medium-market brand. He expressed the hope that VOIR would offer Malaysian consumers an extended product range in the next three years. “Additional fashion and lifestyle products could be introduced through brand extensions, new, acquired or international brands,” said Ham, who stated that if VOIR moved towards the upper market it would be via these channels.
The company has budgeted some RM8 million to RM10 million for expansion next year, including two to three new “VOIR Gallery” — its multi-brand store — and two to three single-brand outlets. Additionally, VOIR has diversified into the food & beverage sector, which it views as a higher margin business. The company intends to add up to eight new Garden Lifestyle Store and Cafés to its current portfolio of two, which are located in suburban malls 1-Utama and The Curve. If all goes as planned, VOIR expects the Cafés to contribute up to 10% of its revenue next year. Tapping regional markets Having cornered a slice of the local retail market, Malaysian fashion houses have turned their attention to the exports market, another driver of growth. Bonia appears to have taken the biggest stride so far. More than 28% of the company’s revenue is derived from abroad where it has 70 boutiques, including Singapore, China, Taiwan, Thailand, Vietnam, Indonesia, Japan, Saudi Arabia and Syria. It began manufacturing bags and wallets at its China plant for the country’s domestic market end-2008. Recently, Bonia announced the acquisition of a 70% stake in Singapore-based Jeco Pte Ltd for S$28 million. Jeco is the licensee for Pierre Cardin leather goods in Singapore and the master licensee for Renoma in Singapore, Malaysia and Indonesia. It is also the sole distributor of Bruno Magli products in Singapore and the owner of trademark and brand representative of Braun Buffel in Asia-Pacific. “The acquisition is quite a profitable one. It will immediately impact earnings given the size of the stake,” an analyst said. As for Padini, overseas sales account for some 10% of Padini’s revenue currently. The company’s products are sold in retail stores and counters operated by licensees and dealers in various countries. This strategy enables it to push greater volume while limiting capital commitment and risks exposure. How the stocks performed Bonia is the largest gainer with a 59% increase in share price to RM1.67 per share from RM1.05 at the start of the year. The company posted a 61% rise in net profit to RM33.23 million from RM20.61 million for the 12-month period. Four research houses have recommended a buy on the stock since September, with an average target price of RM1.91 per share. Shares for Padini rose 32% to RM4.98 from RM3.77 over the same period. In its 12-month results, Padini also announced a 23% rise in net profit to RM60.74 million from RM49.53 million in FY09. Since September, two research houses have issued buy calls on the stock, with an average target price of RM4.83. VOIR, the smallest of the three, fell slightly short of the benchmark FBM KLCI. The stock gained just 5% to 72.5 sen from 69 sen at the beginning of 2010. For the first six months of the year, VOIR posted a 109% y-o-y increase in net profit to RM1.91 million from RM900,000 in the previous corresponding period. In an August report, the sole research house covering VOIR recommended a “hold” and a target price of 61 sen. Related stories: VOIR looks to diversification and brand extension Bonia known for its quality Padini gets its concept right Retailers doing well on strengthening consumer spending This article appeared in The Edge Financial Daily, Oct 11, 2010. |
Wednesday, 23 June 2010
Padini expects slower sales growth in fiscal 2010 (10/9/2009)
Padini expects slower sales growth in fiscal 2010
2009/09/10
Malaysian fashion retailer Padini expects annual sales growth in fiscal 2010 to slow from a year ago as it expands at a slower pace.
The pace at which the company will add retail space will fall by more than half, Padini executive director Chan Kwai Heng said.
Sales for the year to June 2009 jumped 24 per cent to RM477 million from a year ago and net profit was up 19 per cent at RM49.5 million, company data showed.
"That kind of growth could be a bit hard pressed to sustain, because for FY2010 we are not adding a lot more space," Chan said in an interview yesterday.
Padini will add about 40,000 square feet of retail space in fiscal 2010, versus 90,000 sq ft in 2009 and 140,000 sq ft in 2008, said Chan.
Malaysia, Asia's third most trade-dependent economy after Singapore and Hong Kong, shrank 3.9 per cent in the second quarter after a 6.2 per cent drop in the first quarter from a year ago.
Padini's business is growing despite the downturn and the company is rolling out new product lines and opening more outlets.
"The increase in sales is mainly generated from (new retail space)," said Chan.
A company that began as a garment manufacturer for bigger brands in 1971, Padini moved to building its own brands in the late 80's and early 90's when a booming economy boosted domestic consumption in the Southeast Asian country.
The company now sells nine brands of fashion goods ranging from garments to women's shoes and accessories in 12 countries in Southeast Asia and the Middle East.
Foreign retail brands such as Top Shop, Zara and MNG have flooded the local retail market in recent years to tap into the growing consumer market.
Chan said the company has no intention of beefing up its exports in spite of rising competition at home. Currently, overseas sales account for about 10 per cent of the total.
"We do not have a concerted plan or strategy as to what we shall do to go for the export market," said Chan.
"For us, the retail market at home is still so lucrative and it is still doing so well for us, because of that we will really pay attention to this part," he said.
Padini shares have outperformed that of its rivals so far this year but lagged the performance of the wider market.
The stock has risen 14.63 per cent so far this year, compared to the benchmark stock index's 37 per cent gain while competitor Voir is down 10.56 per cent and Bonia has fallen 12.28 per cent. - Reuters
2009/09/10
Malaysian fashion retailer Padini expects annual sales growth in fiscal 2010 to slow from a year ago as it expands at a slower pace.
The pace at which the company will add retail space will fall by more than half, Padini executive director Chan Kwai Heng said.
Sales for the year to June 2009 jumped 24 per cent to RM477 million from a year ago and net profit was up 19 per cent at RM49.5 million, company data showed.
"That kind of growth could be a bit hard pressed to sustain, because for FY2010 we are not adding a lot more space," Chan said in an interview yesterday.
Padini will add about 40,000 square feet of retail space in fiscal 2010, versus 90,000 sq ft in 2009 and 140,000 sq ft in 2008, said Chan.
Malaysia, Asia's third most trade-dependent economy after Singapore and Hong Kong, shrank 3.9 per cent in the second quarter after a 6.2 per cent drop in the first quarter from a year ago.
Padini's business is growing despite the downturn and the company is rolling out new product lines and opening more outlets.
"The increase in sales is mainly generated from (new retail space)," said Chan.
A company that began as a garment manufacturer for bigger brands in 1971, Padini moved to building its own brands in the late 80's and early 90's when a booming economy boosted domestic consumption in the Southeast Asian country.
The company now sells nine brands of fashion goods ranging from garments to women's shoes and accessories in 12 countries in Southeast Asia and the Middle East.
Foreign retail brands such as Top Shop, Zara and MNG have flooded the local retail market in recent years to tap into the growing consumer market.
Chan said the company has no intention of beefing up its exports in spite of rising competition at home. Currently, overseas sales account for about 10 per cent of the total.
"We do not have a concerted plan or strategy as to what we shall do to go for the export market," said Chan.
"For us, the retail market at home is still so lucrative and it is still doing so well for us, because of that we will really pay attention to this part," he said.
Padini shares have outperformed that of its rivals so far this year but lagged the performance of the wider market.
The stock has risen 14.63 per cent so far this year, compared to the benchmark stock index's 37 per cent gain while competitor Voir is down 10.56 per cent and Bonia has fallen 12.28 per cent. - Reuters
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