Mainstream
Will Bonia’s strategy pay off?
Shalini Kumar | 03 Nov 2017 00:30
Bonia is seeing renewed investor interest following its business consolidation strategy over the last two years

Bonia Corporation Bhd has posted positive earnings in FY17 including its latest fourth quarter ending June 30, 2017, but analysts are unsure if the company’s strategy to move into higher margin products will pay off. The company is mainly involved in the manufacturing and retailing of luxury leatherwear, apparel, accessories as well as licensed international brands such as Braun Buffel.

To improve its earnings potential, Bonia has adjusted its pricing strategy by introducing higher-margin products, reducing discounts given out to customers as well as adjusting the prices for new product ranges, in particular for the Bonia and Braun Buffel brands.

But will this be enough to sustain its profit record? Analysts say it could be a tough road ahead for Bonia.