Hot Stock Bonia rises 5% after Edge report

by **Cals** Thu 17 Apr 2014, 01:09

Hot Stock Bonia rises 5% after Edge report

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 16 April 2014 12:23

KUALA LUMPUR (Apr 16): Bonia Corporation Bhd rose as much as 5% after a report by The Edge Financial Daily on the company.

The Edge Financial Daily reported on Monday that the company is on track to improve its net margin to 12% from 6.5% in 2013. It added there is now increased level of institutional shareholdings in the company.

At 11.59 am today, Bonia gained 23 sen or 4.7% to RM5.13. The third top gainer today saw trades of 195,800 shares done.

Bonia’s group managing director Datuk Albert Chiang said Bonia is positive about the company keeping up with its earnings trajectory.

He believes Bonia is on the right track in terms of its branding and pricing strategy, according to the Edge Financial Daily.

Chiang was quoted as saying: “The group has a vision to achieve 12% in profit after tax margin by FY15 and FY16.”

Chiang said the net margin target is more possible to achieve as he is upbeat on the prospects from ASEAN and believes Bonia’s overseas revenue will rise.

Currently, institutional shareholdings in Bonia stood at 40%, up from an estimated 15% to 20% a year ago.

For instance, Milingtonia Ltd has emerged as one of the substantial shareholders of Bonia in August 2013 and currently holds a 7.25% stake in the group.

Milingtonia is said to be linked with Creador Group, a long-term private equity firm focused on growth-orientated businesses and currently holds a 7.25% stake in the group.

Bonia has had a good run in its share price in the past one year.

From having traded at just RM1.90 a year ago, the counter had risen 186% to close at RM5.50 last Friday, giving it a market capitalisation of RM1.1 billion.