Best World

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12 Aug 2008 01:46 #195 by Mel
Replied by Mel on topic Best World
from presentation materials on SGX:

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12 Aug 2008 01:56 #197 by MacGyver
Replied by MacGyver on topic Best World
This is a company that I quite like. Been putting it on my radar screen for a year. Bought some when it collapsed all of a sudden a few months ago. The nature of the business is that it should enjoy strong cashflow as it collects from its distributors prior to giving out the commission. Operates something like a insurance company. Definately a Buffett type of investment. Problem is that most Singapore companies don\'t know how to grow regionally. Most simply tanked up after a couple of years. Not too sure whether it has something to do with our kiasu, kiasi culture. The Company hit a tipping point when they went listing in 2004. Sales and profitability soared in 04/05. Subsequently, they seem to run into some problems with their expansion... Growth slowed and forex issues started to appear. Does seem that the mgt is learning from the mistakes made and progress can be seen. At this valuation, it does seem too cheap. Trading at ex-cash around 3.5x PE. (Remember this company has a short cash conversion cycle) I also like the fact that the Company gives regularly dividends (interim and full year). As for the CIMB report, if you track the analyst, you will know this analyst\'s calls are so-so. I prefer to trust myself. :laugh: :laugh:

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13 Aug 2008 19:30 - 24 Sep 2008 19:30 #218 by Mel
Replied by Mel on topic Best World
Chris Sanda of Daiwa Research wrote a report and maintained his target price of 88 cents. Best World International (Best World), a regional direct-sales company for personal care products, announced 2Q08 results that were in line with our expectations. We maintain our FY08 net-earnings forecast, but have revised down our FY09 net-earnings forecast by 14.0% as we assume decelerating Southeast Asian consumer spending. We have a 2 (Outperform) rating and a DCF-based six-month target price of S$0.88 on the stock. Fundamentals • Best World announced its 2Q08 results after the market closed on 8 August 2008. The company is scheduled to hold a briefing on 11 August 2008. The results were in line with our expectations and our FY08 forecasts are similar to the Bloomberg consensus forecasts. • Operationally, the results were satisfactory, in our view. Membership growth was decent, with 10.1% sequential and 39.9% YoY membership growth. However, we think membership growth was at the expense of quality, as the average revenue per member (ARPM) fell by 23.6% YoY (but was up 4.1% sequentially). There were also no negative surprises, the same as for the 1Q08 results. • We have revised down our FY09 net-earnings forecast by 14.0%. This was due largely to less aggressive membership-growth assumptions and a larger assumed decline in ARPM. Our FY09 forecasts are now fairly close to the Bloomberg consensus forecasts. • Management gave updated guidance as to the Joymain acquisition. It now expects the regulators to rule on its PRC acquisition by 4Q08. Management also said that ‘2H2008 will be an even more challenging period for the Group’. We will have to wait for Monday’s briefing to see if this means anything.
Last edit: 24 Sep 2008 19:30 by .

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31 Aug 2008 02:49 - 26 Sep 2008 02:54 #314 by Mel
Replied by Mel on topic Best World
1H08 results: very insightful briefing by executive director of best world, huang ban chin, can be found at this link: www.infinitesparks.com/dev/webcast_flash...ld_1h2008/index.html
Last edit: 26 Sep 2008 02:54 by .

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01 Sep 2008 20:05 #319 by MacGyver
Replied by MacGyver on topic Best World
If you believe in long term, this company may be the choice for you. Short-term, there\'s no catalyst to spur a revaluation. But if their PRC business can take off, Best World can be a double-bagger in 1-2 years\' time. Just got vested recently. Decent dividend payouts coming soon.

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09 Sep 2008 01:15 #357 by MacGyver
Replied by MacGyver on topic Best World
Went down to Best World Toa Payoh HQ this afternoon during lunchtime. Was pleasantly surprised to see around 20 consumers buying products. The counters were quite busy. Observed that most of the consumers, in fact all were females except 2 middle-aged guys. Products that they were buying seem to be mainly the skin care products, ie their Dr\'s Secret products. Would pay a visit to their other branches tomorrow.

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