Best World Intl

[winston]

not vested

4Q Results

Best World reported late on Tuesday a 28.9 per cent rise in net profit for its fourth quarter from a year ago, on a surge in revenue and higher gross margins.

The stronger results come amid what it cites as a transition from an export model to a franchise model in its China market.

Net profit for three months ended Dec 31, 2018 stood at S$28.1 million, compared to a net profit of S$21.8 million.

The results translate to earnings per share of 5.12 Singapore cents, against earnings per share of 3.96 Singapore cents.

Source: Phillips

[winston]

not vested

CLARIFICATION ANNOUNCEMENT IN RELATION TO THE BUSINESS TIMES ARTICLE

https://links.sgx.com/FileOpen/2019%200 ... eID=544676

[winston]

not vested

4Q18 results: Growth priced in for now

BEST’s FY18 core net profit of S$64.0m was in-line at 103.9% of our FY18 forecast (S$62m) but marginally ahead of the consensus number (S$60.6m).

China is expected to be the key net profit driver for FY19-20F; but at 15.7x CY20F P/E we believe this growth has already been priced-in.

Downgrade to Reduce from Hold as our new TP of S$2.43 now on 14.9x CY20F P/E (c.1.5 s.d. above its 2-year average), features downside risks.

Source: CIMB

https://brokingrfs.cimb.com/2bDShm5rlN7 ... V0CLQ2.pdf

[winston]

not vested

Feb 28, 2019

Going Back To Fundamentals; Maintain BUY Target Price (Return) SGD2.95 (+15%)

Market Cap: USD1,031m
Avg Daily Turnover (SGD/USD) 12.8m/9.5m

Maintain BUY with higher TP of SGD2.95 from SGD2.13, 15% upside and % FY19F yield.

Best World’s 4Q18 results beat our as well as consensus’ estimate. For the full year, core PATMI grew 15% YoY to SGD63.9m.

Source: RHB

https://research.rhbtradesmart.com/atta ... a7eac7.pdf

[winston]

not vested

Is this the best time to buy into Best World?

By Stanislaus Jude Chan

SINGAPORE (Feb 28): Analysts are divided over Best World International, as the group announced a 29% increase in earnings to $28.1 million in the 4Q18 ended December, amid news that it plans to conduct an independent review on its business and accounting practices.

The stronger bottomline comes as the direct-selling company and seller of premium skincare products to franchisees in China, transitions from an export model to a franchise model in the China market.

But Best World saw its stock price plunge this past week, after an article by The Business Times on Feb 18 questioned the shroud of secrecy over the group’s franchisees and raised concerns over its direct selling license in China.

In response, Best World on Feb 23 issued a statement to clarify the issues raised and said it would be launching an independent review. It adds that it intends to publish and report its findings to its audit committee as well as to SGX RegCo.

From its 52-week peak of $3.30 on Feb 11, shares in Best World sank as low as $2.01 on Feb 25.

“Over-exuberance in the market resulted in its share price soaring 24% in the first two weeks of February over no apparent news, before collapsing on concerns raised in the Business Times article,” says RHB Research analyst Juliana Cai in a Friday report.

“Since the share price has now retraced to a more reasonable level, we see value emerging, given the strong growth prospects in its China franchise business,” she adds.

RHB is keeping its “buy” call on Best World and raising its target price to $2.95, from $1.97 previously.

Cai says this on the back of stronger earnings growth as well as a higher target price-to-earnings (PE) multiple of 18 times to reflect increased clarity in the franchise business’ margins.

“While we are confident of the near-term earnings prospects, we caveat investors to avoid chasing share price when valuation runs way too high,” Cai warns. “Unlike a usual retail business, Best World’s direct selling model and franchise model operate largely by ‘social selling’. This business model itself innately has limited visibility in end-consumer demand.”

Meanwhile, CGS-CIMB Research is downgrading Best World to “reduce”, from “hold” previously.

“We believe most of the forward growth has been priced in,” says analyst Cezzane See in a Thursday report.

However, CGS-CIMB is raising its target price to $2.43, from $1.90 previously, as it lifts its PE valuations in light of the strong growth.

“We lift our FY19F and FY20F net profits by 5.5% and 7.5% respectively on higher revenue growth, especially from China,” See says.

According to RHB valuations, Best World trades at an estimated PE of 18.1 times and a dividend yield of 2.8% for FY19F.

Source: The Edge

https://www.theedgesingapore.com/best-t ... 401b309bc7

[winston]

not vested

Best World ($1.84, up 15 cents) announced that it has made an application to SGX RegCo for a waiver from the requirements of Rule 707(1) of the Mainboard Rules of the SGX-ST and an extension of two (2) months to hold the AGM by 30 June 2019.

With reference to its previous announcements in relation to the independent review of the Franchise Model adopted by the Group in China in 2018, the Group highlighted that it had commissioned the Review in order to obtain independent third party validation of the Franchise Model.

The Independent Reviewer has made significant progress in its work since its appointment on 18 March 2019 and is expected to complete its work by June 2019.

Based on the Independent Reviewer’s interim update as of 12 April 2019, the Board and the Audit Committee understand that the Independent Reviewer has not identified any matters that may have a material impact on the Group’s unaudited financial statements for the financial year ended 31 December 2018 (“FY2018”).

The Board believes that the objective of the Review would be better achieved if the annual general meeting of the Company for FY2018 (the “AGM”) is postponed until the Independent Reviewer completes the Review and the executive summary of its key findings have been announced on SGXNet.

This would enable the Company’s shareholders to have more information on the Franchise Model and to clarify any questions that they may have at the AGM.

Source: Lim & Tan

[winston]

not vested

Best World shares down 9% on attacks by short sellers Bonitas Research and Valiant Varriors

By PC Lee

Source: The Edge

https://www.theedgesingapore.com/best-w ... 401b309bc7

[winston]

not vested

BEST World on Wednesday night posted a 79 per cent jump in net profit for the first quarter to S$10.3 million from S$5.8 million a year ago.

The company attributed the performance to strong sales growth across most of the group's markets.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

[winston]

not vested

Best World admits owner of China import agent is CEO's brother-in-law

By Chan Chao Peh

Source: The Edge

https://www.theedgesingapore.com/best-w ... 401b309bc7

[behappyalways]

SGX RegCo orders independent review of Best World by PwC to be expanded
https://www.theedgesingapore.com/sgx-re ... e-expanded


Hero to Zero
https://valiantvarriors.wixsite.com/hom ... ro-to-zero