Bonia may be re-rated on better-than-expected sales

CGS-CIMB said as most of Bonia’s outlets were temporarily shuttered during the first four phases of the MCO, it expected a larger negative impact on Bonia’s sales in fourth quarter FY20 versus third quarter FY20.

PETALING JAYA: A faster-than-expected sales recovery is a key potential re-rating catalyst for fashion retailer Bonia Corp Bhd, whose sales performance has been hampered by the Covid-19 outbreak, CGS-CIMB said in a report to clients.

The research house added that the group’s streamlining efforts for its overall operations should allow it to record a profitable financial year 2020 (FY20) and a better FY21 from a recovery in sales.