KUALA LUMPUR (Feb 23): Bonia Corporation Bhd (KL:BONIA) posted a 54.6% drop in net profit for its second quarter, weighed down by higher operation costs and lower demand in the fashion industry.

Net profit for the second quarter ended Dec 31, 2025, was RM4.81 million, compared with RM10.58 million a year earlier. Revenue was marginally higher by 2% to RM110.14 million from RM108.04 million.

In a filing with Bursa Malaysia, the fashion retailer said the rise in revenue was mainly driven by the consolidation of its food and beverage business. This is in reference to its acquisition of Casa Bologna Sdn Bhd from One Seafood F&B Sdn Bhd for RM2.1 million with two parcels of land in Bukit Bintang.

Its bottom-line performance was dragged down by higher operating expenses, partially due to the sales and service tax imposed on lease rentals effective July last year, as well as increased depreciation of right-of-use assets and property, plant and equipment.

Despite the lower earnings, the group declared an interim dividend of 0.02 sen per share, payable on March 27.

On a quarter-on-quarter basis, Bonia said the group did well seasonally and saw stronger sales during the year-end festive season and holidays as revenue jumped 29.2% from RM85.3 million in the preceding quarter.

“We will remain vigilant in optimising costs while pursuing growth through our digital channels and exploring strategic opportunities with other brands,” said the fashion house.

AskEdge data shows Bonia currently trading at a price-to-earnings ratio of 21.2 times, which is the lowest among peers where the ratio is applicable (not loss-making or insufficient data). This PE ratio is at the higher end compared to its historical valuation in recent years.

The group's price-to-net-asset-value ratio is 0.4 times lower than most peers, including Parkson Holdings Bhd (KL:PARKSON), Senheng New Retail Bhd (KL:SENHENG) and Eco-Shop Marketing Bhd (KL:ECOSHOP).

Shares of Bonia closed unchanged at 89.5 sen on Monday, giving a market capitalisation of RM180.4 million. Compared to a year ago, the counter is down 30.7%.