Bonia: Is there something interesting?

There is a saying, "Better late than never." I have to admit there is a stock with which I always have interest in following - value stock priced (7x to 8x PE), good growth potential (double digit growth), consistently good management decisions and sound business acumen among its top management - Bonia!

However I have to admit that while every time I looked at its potential and financial results there is this sense of unbelieving, but I could not find fault in them. Cashflow is good, P&L and Balance Sheet strong, receivables believable. So what is wrong there? I think probably because when looking at the Bonia's line of products, maybe I am not one who would buy them. That's it. The products are not to my taste. Slap me please then!

Look at its performance:

There is not much you can fault the management. Current market capitalization of below RM450 million and projected profit after tax of more than RM72 million for FY2012. After acquisition of Jeco, besides Bonia's main house brand of Bonia and Sembonia, they now have Braun Buffel, Renoma, Pierre Cardin in the Asian market. While I may not be quite particularly excited over the last 2 brands in the list but Braun Buffel - I feel they have their decision making and focus right i.e. cornering the middle market for leather products. While Bonia is not in the same mould of LV, Prada, Gucci etc., it does have a market and Asian community is CRAZY over branded products. (if you do your google search over 2011's listing for Prada in Hong Kong, you will know why).

So current price RM2.20 is capitalizing Bonia at RM443 million. With that, just look at its half year performance for FY2012. Is this something which will excite you?

Serious Investing!