Best World Intl

[winston]

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

https://researchwise.dbsvresearch.com/R ... E=cjhhbk-b

[winston]

not vested

Best World bounces back after CEO and Presiden scooped shares

Source: The Edge

https://www.theedgesingapore.com/best-w ... 6-87358173

[winston]

not vested

Trust in BEST’s track record

Minimal impact from China’s crackdown

Since Bloomberg published an article on 15 Aug 2016 relating to China’s crackdown on pyramid schemes, BEST’s share price has fallen by c.20%.

We spoke to management and it clarified that the event has no or minimal impact on its business as it is not a pyramid scheme.

We trustmanagement based on its consistent track record. We have conducted a scenario analysis for investors who are worried about the China operations, which indicates that a China sales decline of 10-50% could reduce our FY18E EPS by 4-21% and our TP by 14-38% (SGD1.17-1.61).

Maintain BUY and TP of SGD1.88, pegged to an unchanged 19x FY18E EPS (PEG of 0.7x using FY16-19E EPS CAGR of 27%). We ascribed a c.30% discount to the PEG of 1.0x for regulatory risks. BUY on weakness.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/6 ... 3b822c.pdf?

[winston]

not vested

Best World International: Chief operating officer, Huang Ban Chin, told The Business Times that the company is on track to hit analyst targets of S$41 million to S$44 million of net profit for 2017.

This translates to a 20-30% improvement from 2016.

[behappyalways]

best-world-posts-364-growth-3q-earnings-122-mil-lower-expenses
https://www.theedgesingapore.com/best-w ... r-expenses

[behappyalways]

Best World sees near doubling of 4Q earnings to $21.8 mil on higher revenue
https://www.theedgesingapore.com/best-w ... er-revenue

[behappyalways]

Best World posts 40.6% drop in 1Q earnings to $5.8 mil on conversion from export to China wholesale
https://www.theedgesingapore.com/best-w ... -wholesale

[behappyalways]

Best World 2Q earnings drop 24% to $9.1 mil on lower revenue; declares 1.2 cents interim dividend
https://www.theedgesingapore.com/best-w ... m-dividend

[behappyalways]

Best World reports more than doubling of 3Q earnings to $30 mil on new franchise segment; proposes special dividend
https://www.theedgesingapore.com/best-w ... l-dividend

[behappyalways]

Best World takes up 12.5% stake in A*STAR biotech start-up for $5.6 mil
https://www.theedgesingapore.com/best-w ... art-56-mil