KUCHING: Regional expansion is expected to fuel growth for Bonia Corporation Bhd (Bonia) in addition to increasing sales volume in tandem with improved brand recognition and on-going store refurbishments, among others.
According to the research arm of Affin Investment Bank Bhd (Affin Research), its recent meeting with Bonia’s management has further solidified its positive view on the long-term prospects of the group as a regional upper-mid-range retailer.
“In our view, Bonia’s growth for the next few years will continue to be backed by increasing sales volume in tandem with improved brand recognition through its in-house brands and licences, regional expansion of its boutique stores, particularly in Indonesia and Vietnam, to create better brand awareness, and on-going store refurbishments and consolidation of unprofitable outlets to improve operating efficiencies through the reallocation of resources,” the research arm observed.
Affin Research noted that currently, the group’s Indonesia and Vietnam operations have been progressively contributing to the company’s topline.
It highlighted that to date, the group has opened three new boutiques in Indonesia, bringing its total Indonesian store count to eight.
As for Vietnam, the research arm added that the group has doubled its boutique count to 16 stores in financial year 2013 (FY13) and kicked off another two boutiques for this year.
“Going forward, we believe that these markets will contribute positively to the company’s bottom line over the longer term,” it opined.
Other than expanding its own in-house brands, Affin Research noted that the group has also been aggressively expanding its co-owned brand, Braun Buffel.
Riding on Braun Buffel’s strong brand recognition worldwide, the research arm futher noted that the group has subsequently opened another five stores year to date (YTD), three in Malaysia and two in Singapore.