Best World Intl

Re: Best World Intl

Postby kennynah » Tue Nov 10, 2009 3:10 am

who in the world still gets into these MLMs?? i always have this impression that the people who are involved in MLM schemes are those who can't find work or in-between jobs... i duno anyone who makes any money doing this ... only the people right at the tip of the pyramid makes money...
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Re: Best World Intl

Postby cif5000 » Mon Nov 16, 2009 3:02 pm

bluechipstamp wrote:I used to have this too, but exited shortly after 2Q09 results. The main reason for my exit then (IIRC) is that BW doesn't seem to be able to sustain her revenue in any of the geographical regions, once it hits maturity stage. Revenue per member has been declining in all mature regions.

You exited at a good price eh?

The good thing is that they can launch new products and explore new markets more easily compared to the larger counterparts. A small success in any product or any market will add/buffer their results. The business is flawed anyway if they are not able to juice recurring revenue from members. It then becomes a "cyclical MLM company".
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Re: Best World Intl

Postby bluechipstamp » Thu Nov 19, 2009 1:52 pm

cif, sorry I didn't see your reply, until u mentioned in your PM.

Yes, i love the MLM business model (as a owner). The fixed cost of running the business is very low, which allows the business to be profitable even in tough times. U can see this in BW's results, even with the disastrous Indonesia revenue plunge.

I used to have the same views on MLM as kennynah, until I read about Berkshire's purchase of "The Pampered Chef" (a US based MLM for kitchen tools). Direct selling, if done right, can be legitimate and moral. I see it really just as another form of distribution channel.

The product must really add value and be sustainable though.... IMHO, BW failed in having a sustainable product. This may change, and if it does, I'll be back looking @ this stock again.
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Re: Best World Intl

Postby winston » Mon Aug 08, 2016 8:22 am

not vested

Best World’s half-year earnings surge to $13.3 mil

By PC Lee

SINGAPORE (Aug 5): Best World International says earnings for the six months ended June (1H16) surged $13.3 million from a year ago on higher sales.

This is a near sixfold increase from the $2.4 million posted in 1H15.

1H16 revenue more than doubled to $86.8 million, says the distributor of skincare, personal care, nutritional and wellness products through its direct-selling members.

Revenue from the Taiwan market grew 275.8% to $55.3 million, which translates to 63.7% of the group’s total revenue.

During the quarter, the group launched its online store and Kaohsiung Regional Centre, which contributed $16.4 million and $12.1 million in sales respectively.

Revenue from China rose 164.7% to $22.4 million, lifted by higher export orders from the group’s China agent.

Revenue from Indonesia more than doubled to $2.7 million due to activities from new distributors, marketing campaigns and enhanced interest in the group’s skincare products.

Best World’s board of directors have recommended an interim one tier tax-exempt dividend of 2 cents per share, representing a dividend payout of 33% of the group’s 1H net profit.

Shares of Best World rose 3.2% at $1.61.

Source: The Edge
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Re: Best World Intl

Postby winston » Mon Aug 08, 2016 9:37 am

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1H2016 earnings surge 466.1% to $13.3 million;
Interim one tier tax-exempt Dividend of 2.0 Cents per Share and Proposed 1-for-4 Bonus Issue

Revenue rose 151.3% to $86.8 million driven by key markets of Taiwan, China and Indonesia;

Robust balance sheet backed by healthy cash position of $48.3 million as at 30 June 2016;

Interim dividend of 2.0 cents per share and proposed bonus issue of one bonus share for every four ordinary shares;

China Direct selling license expected to be effective before the end of FY2016

http://infopub.sgx.com/FileOpen/2016%20 ... eID=415775
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Re: Best World Intl

Postby winston » Mon Aug 08, 2016 1:45 pm

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Fever-like performance from Taiwan

Best World continues to exceed expectations on the back of another strong showing in Taiwan and China. 2Q/1H net profit formed 38/68% of our FY16F.

Indonesia also shows promise, but is still not yet a significant contributor.

Interim dividend of 2.0 Scts declared. 1-for-4 bonus issue proposed.

We raise our FY16-18F EPS on continued momentum in Taiwan. Our current EPS and TP do not yet account for the proposed bonus issue.

Maintain Add. Our TP is raised as we lift our EPS

Source: CIMB

https://brokingrfs.cimb.com/Hz6lgd9suyu ... bqdOw2.pdf
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Re: Best World Intl

Postby winston » Thu Aug 25, 2016 8:49 am

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Best World puts best foot forward in China after Taiwan

By Jude Chan

SINGAPORE (Aug 24): Maybank Kim Eng has initiated coverage on Best World International with a “buy” recommendation and a target price of $2.63.

“With Best’s entrenched position in ASEAN and growing presence in China and Taiwan, it is well-positioned to scale up in its fast-growing key markets,” says Maybank analyst John Cheong in a Wednesday report.

The multi-channel distributor of skincare and wellness products saw earnings in the first half of 2016 surge to $13.3 million, close to a six-fold increase from the $2.4 million posted in 1H15.

Revenue for the six months ended June more than doubled to $86.8 million.

Cheong says the direct seller is “making a breakthrough”.

“Growth prospects are attractive as Best World scales up in the fastest growing markets and we expect FY16E earnings to reach a record high with 180% y-o-y growth,” Cheong adds.

“Strong growth in Best’s largest market, Taiwan, should continue as it reaches inflection point, after years of nurturing,” he says. In addition, the recent approval of Best’s license to operate in China is expected to support rapid expansion.

Shares in Best World on Monday rose as much as 5.3% to $1.79, triggering a query by Singapore Exchange (SGX).

In response to the query, Best World on Tuesday said the surge of its share price over the last two trading sessions might have been related to approval of a proposed bonus issue.

It had received in-principle approval from the SGX on Sunday for its bonus issue plans.

Best World International closed 9.7% higher at $1.92.

Source: The Edge

http://smr.theedgemarkets.com/article/b ... f-87358173
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Re: Best World Intl

Postby winston » Wed Sep 28, 2016 8:25 am

Best World International continues to shine

By Benjamin Cher

SINGAPORE (27 Sept): CIMB is maintaining its “add” call for Best World International and raising its target price to $2.05 from $1.56, on the back of strong growth.

The company’s growth has been driven by Taiwan, where sales have grown 276% year-on-year in 1H16, notes analyst Jonathan Seow in a Sunday report.

Key drivers for this growth include a new lifestyle centre in Kaohsiung, increased product acceptance, and its new online store.

“Based on 1H16’s results, Best World International is poised to be among the top ten direct selling companies in Taiwan,” says Seow.

While investors have concerns about channel stocking, Seow notes that there is no incentive for distributors to do so, as the product is paid in cash. Furthermore, with no price discrimination among members, it reduces the possibility of distributors stocking up for arbitrage.

Best World International is also looking to maintain its own manufacturing facility in Singapore by the second half of 2016, with sales reaching the appropriate economies of scale, Seow highlights. This would allow the company to better manage back-end supply and quality.

The facility will be fully automated, which qualifies it for government schemes, Seow notes. Best World International also has a net cash of $46 million, more than adequate to cover the capital expense of about $15 million in building up the facility.

“It is important to note that the facility is located in Singapore and not a cheaper low-cost country as its internal studies show that consumers rank Singapore highly on quality perception,” says Seow.

The company’s direct-selling plans in China appear to be on track, according to Seow. The company is on schedule to set up the requisite nine service centres in Hangzhou city by end of 2016, after which the current export model will be converted to a direct selling model.

Taiwan currently makes up 68% of the group’s revenue but we expect China to eventually overtake Taiwan,” says Seow.

Seow notes that there are still key risks with regulatory changes and a drop in sales in key markets that might dampen the share price.

Best World International shares closed flat at $1.54 on Tuesday.

Source: The Edge

http://smr.theedgemarkets.com/article/b ... 8-87358173
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Re: Best World Intl

Postby winston » Tue Nov 08, 2016 8:24 am

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Stellar 3Q profit secures another record year for Best World

By Michelle Zhu

SINGAPORE (Nov 7): CIMB is reiterating its “add” call on Best World with a higher target price of $2.21 from $2.05 previously, after the direct-selling company posted 3Q earnings of $8.9 million, which was more than double from a year ago.

In a Friday report, analyst Jonathan Seow notes the group’s “stellar” net profit is mainly due to the “star markets” of Taiwan and China. This has resulted in CIMB lifting its FY16 EPS forecast mostly on better-than-expected sales in China.

“Earnings growth will mostly come from penetration into China and full conversion to a direct-selling model,” says the analyst, noting the group’s completion of its verification process of the requisite nine service centres in Hangzhou city.

“Best World’s biggest market, Taiwan, is also poised for growth, backed by a growing membership base. Indonesia has also done well and could surprise positively – although it is still currently a small contributor,” he notes.

Despite the q-o-q drop in Taiwan sales by 21%, Seow believes it is “not a concern” as he thinks Best World’s management intentionally withheld major promotions in the quarter in anticipation of anniversary promotions and celebrations in 4Q.

The analyst says FY16F will be a record year as 9M16 net profit has already exceeded FY15’s $10 million.

“We believe that FY17F will again prove to be another record year,” adds Seow.

Shares of Best World closed 2 cents higher at $1.52.

Source: The Edge

http://smr.theedgemarkets.com/article/s ... e-87358173
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Re: Best World Intl

Postby winston » Mon Jan 16, 2017 9:18 am

Poised for the big leap

Well-established track record not fully appreciated

Best World (BW) is a direct-selling company that has built a credible track record.

Focusing on the premium skin care, it is well established outside of Singapore, and thus, the investment merits are not fully appreciated.

BW’s ability to succeed in highly competitive markets like Taiwan and China is a testimony of management capabilities.

Despite the share-price rally (480% over the past one year), the stock remains undervalued vs regional peers.

Fundamentals are underpinned by 27% EPS Cagr over FY16-18CL and strong free cashflow and backed by ~40% net cash equity.

We initiate coverage with BUY and S$2.50 target price.

Source: CLSA
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