vested
Lowering growth expectations
Downgrade to HOLD with lower TP of S$1.45; Earnings lowered by 9%/16%.
Best World’s share price fell 12% on Tuesday following China’s campaign against illegal pyramid schemes.
Prompted by this event, we have cut sales growth projections for Best World’s China operations from 80%/35% to 45%/15% for FY17F/18F.
Potential spillover from this event could weigh on consumer sentiment and hurt member growth.
Downgrade to HOLD with lower TP of S$1.45 after lowering the group’s earnings projections for FY17F/18F by 9%/16% andbased on 17x FY17 PE (vs 18x previously).
Source: DBS
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