Wed, Jun 03, 2015 - Page 13 News List

Bon-Fame eyes 20% sales, profit growth

By Amy Su  /  Staff reporter

Bon-Fame Co Ltd (弘帆), a manufacturer and distributor of fashion accessories, has targeted 20 percent growth in sales as well as profit this year after receiving new orders from Los Angeles-based fashion firm Forever 21 Inc and British apparel retailer Primark Stores Ltd.

“The company has won orders from two new clients this year, Forever 21 and Primark, which might make for the largest growth momentum this year,” Bon-Fame chairman Fred Chu (朱鵬飛) told a media briefing on Monday, a day before its annual shareholders’ meeting.

Winning orders from the two fashion retailers, which operate hundreds of outlets worldwide, is to help raise Bon-Fame’s sales and profit, Chu said. In addition, the move falls in line with the company’s strategy of diversifying customers to lower risk.

Bon-Fame, a Taiwanese manufacturing company specializing in hair accessories and styling tools, reported net income of NT$63.41 million (US$2.05 million) for the first quarter, or NT$1.21 per share, up 54.5 percent from the same period last year, a company filing with the Taipei stock exchange showed.

Consolidated sales in the first four months of the year stood at NT$765.18 million, up 15.76 percent from a year earlier, data showed.

Through cooperation with Forever 21 and Primark, Chu said the company expects to see the amount of sales contribution by its two major US-based customers, Goody Products Inc and Conair Corp, drop to 50 percent or less in a year, from 55 percent recorded in the first quarter.

Goody Products and Conair are hair accessory and styling tool brands that are major suppliers to US retail channels like Wal-Mart Stores Inc and Target Brands Inc.

Shareholders of Bon-Fame yesterday approved the company’s plan to distribute a cash dividend of NT$3.5 per share, based on a net profit last year of NT$210.73 million, or NT$4.01 per share.

The company saw its shares remain flat yesterday, closing at NT$104 on the Taipei Exchange (櫃檯買賣中心), the nation’s over-the-counter bourse.

However, market analysts forecast Bon-Fame stock to show the largest potential this year, as the company’s stock price risen 126 percent this year.

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