Interpret the Financial Condition of Bonia Berhad

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Introduction
Bonia Corporation Berhad was established in 1974 and listed on the Main Market of Bursa Malaysia. The company operates in segments of manufacturing, marketing, and retailing of fashionable apparels, footwear, accessories and leather goods. Bonia Group has a network of over 700 sales outlets and 70 boutiques all over the world that include countries like Singapore, Malaysia, Japan, Taiwan, China, Thailand, Myanmar, Vietnam, Indonesia, Brunei, Philippines, Kingdom of Saudi Arabia, Syria and Oman. Successful brands such as SEMBONIA and CARLO RINO was under leading label of BONIA.

There are 3 share valuation methods we used to calculate the values of the company per shares, which are I. Net Assets Method of share valuation
Net asset value is a method that based on the firm’s assets. Intangible assets which including goodwill should be excluded as the intangible assets include the brand name of the company which is indefinite assets. Unless there are definite assets like patents and copyrights which has limited life, then it can be include in when using this method to calculate the values of company per share as the assets can be sold. The data use to perform the valuation are also easily available as it is based on the firm, firms that have heavy tangible investments. Year| 2006| 2007| 2008| 2009| 2010|

 | RM'000| RM'000| RM'000| RM'000| RM'000|
Non-current assets|  | 79,886|  | 66,240| | 74,546|  | 88,563| | 81,042| Current assets|  | 109,392|  | 161,017| | 186,423|  | 156,199| | 185,538| Total value of assets|  | 189,278|  | 227,257| | 260,969|  | 244,762| | 266,580|  |  |  |  |  | | |  |  | |  |

Less : Current liabilities|  | 57,998|  | 53,726| | 89,982|  | 48,402| | 41,247| Net current assets|  | 131,280|  | 173,531| | 170,987|  | 196,360| | 225,333|  |  |  |  |  | | |  |  | |  |

Less : Intangible asset (Goodwill)|  | 6,365|  | 4,876| | 4,878|  | 4,878| | 4,876|  |  | 124,915|  | 168,655| | 166,109|  | 191,482| | 220,457|  |  |  |  |  | | |  |  | |  |

Less : Preference shares| -|  | -|  | -| | -|  | -|  | Loan| 37,373 |  | 38,516|  | 8,283| | 15,576|  | 18,936|  | Deferred taxation| 245|  | 241|  | 316| | 235|  | 244|  |  |  | 37,618 |  | 38,757 | | 8,599 |  | 15,811 |  | 19,180 | Net asset value of equity|  | 87,297|  | 129,898|  | 157,510|  | 175,671|  | 201,277|  |  | |  |  | | |  |  | |  |

Number of ordinary shares| | 43,471| | 175,728| | 198,278| | 201,571| | 201,571| Value per share|  | 2.01| | 0.74| | 0.79| | 0.87| | 1.00|  |  |  |  |  |  |  |  |  |  |  |

Net Assets Method of share valuation

II. Income Based Valuation Method
Price/Earnings (P/E) ratio is one of the most widely used methods to measure the valuation of both stock market as well as individual stocks. This ratio shows how many times bigger the share price is compare the Earning Per Share(EPS).P/E ratio compare the earnings of the company with the other companies of the similar characteristics and size that operate in the same market which is consumer products market. Compare to the market price alone, P/E ratio also is a better indicator of stock’s value. Formula for income based valuation method

P/E ratio =| Market value| |
| EPS| |
| | |
EPS =| Profit after tax - preference dividend|
| ordinary share capital|

Market Share Price
Year| 2006| 2007| 2008| 2009| 2010|
Bonia| 0.38| 1.72| 1.68| 0.97| 1|
Padini| 0.23| 0.38| 0.48| 0.43| 0.72|

Income Based Valuation Method
Padini Holdings Berhad| | | | | | | | | | |
Year| 2006| 2007| 2008| 2009| 2010|
 | RM'000| RM'000| RM'000| RM'000| RM'000|
PE RATIO|  |  | | |  |  |  ...
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