
Bullrun,
I have monitored your postings and you seem like a Value Investor like me. I have also bought BW some time back and now still holding on. Lets hope for a big ang pow together!
Is it still ok to buy in at the current price, 0.79? I know they are announcing their results on 14th Feb.
Based on 2005 direct sales data, there are 4,037,000 salespeople in Taiwan direct selling market! Sale amounted to US$2.1 billiion. That is why I believe that Taiwan will make significant impact to BW's FY07 earning.
Japan sales in 2004 was US$23 billion and Korea US$8.03 billion. The prospect for Best World simply look great!! If execuated well in these 3 markets alone excluding China, Best World should be able to grow to become a blue chip in few years time!!
http://www.dsa.org.tw/data-eng.html
Best World is poised for greater success!! Achievement in FY60 includes:
- Upgraded to the Main Board of SGX.
- Awarded Regional Headquarters status bt EDB.
- Opening of JB RC & Taiwan RC.
- Headquarters expanded and moved to Changi new building.
- Launched new products Q10 Clear Mask and UberAir.
I'm sure the best is yet to be!!
If u r vested already, stay on board for a long sweet ride. This stock has yet to reach its full speed. Come Feb 14 - Valentine's Day - Best World will announce full year results. I expect earnings to surprise on the upside.
A bullish sign was given reccently when it announced expected profit growth of at least 30% p.a. in the next 3 years
(see Dow Jones report below). Commonsense tells you that they expect a higher growth rate, but are publicly forecasting a rate that they are comfortable with achieving.
Just maintaining its currrent PE valuation, the stock can be expected to rise 30% a year! If the market finally
decides that it deserves a richer valuation because of its excellent biz fundamentals and strong and certain outlook,
the PE could be 15X current-year expected earnings. That means around $1.50 for the stock !
BEST World International expects to grow
its profits at a compound annual rate of
30 per cent for the next three years by growing
its presence in established markets and
expanding into new ones, according to executive
director Huang Ban Chin.
�We feel this rate of growth is achievable
because there is room for growth still in our
established markets of Malaysia and Indonesia,
even as we expand into new markets.�
A final pillar of Best World�s growth is the
�constant launching of new products�, said
Mr Huang, such as the rollout of the BWL Negative
Ionizer, which accounted for about 10 per
cent of Best World�s sales in the first half of
this year. The ionizer�s sales have recently
risen due to the haze that has plagued Singapore,
said Mr Huang, adding that it can alleviate
the haze by giving air a fresher feel.
This month�s sales of the ionizer are on
track to be double that of September in Singapore
due to the haze. Mr Huang predicts
that it will account for 10 to 15 per cent of Best
World�s total sales this year. � DOW JONES
At 74.5 cents Best World is still very undervalued!! It fair value should be at least $1.2 by now.
Best World share price was 70+ cents a year ago. With the networks expanded to Hong Kong and Taiwan and new star product like the Q10 mask and Ionizer, there is no reason why is should still be trading at 70+ cents... Many other positive developments like the Hala certifications, new markets will push Best World to greater height in 2007!!!
1. Profit growth has been fantasic -----> it's the first strong sign of a biz that's wonderful for whatever reason.
FY03: Net profit was $3 m (up 165%)
FY 04: Net profit was $5 m ( up 69%)
FY 05: Net profit $8.5 m ( up 68%)
H1 '06" Net profit $5.7 m ( up 32%)
2. Cash flow: this is very beautiful, with operating cashflow almost matching net profit through the years.
FY03: Net profit was $3 m
net cash from operations was $3.6 m
FY 04: Net profit was $5 m
net cash from ops was $4.8 m
FY 05: Net profit $8.5 m
net cash from ops was $5.6 m
3. Net profit margin: consistently at around 16-18%. This is a very laudable margin.
4. Growth in the next 3 years: the exec director has announced that growth will be at least 30% p.a. in the next 3 years.
I don't agree with anyone who suggests that the announcement is merely to provide support to the stock price. Surely, there must be solid reasons for making such an announcement. For one thing, if u look at the schedule best world has for entering new markets, you know they have action in mind.
as for yr point, granted the price/book is high, but hey, this is not an asset-intensive biz. It's asset-light, capex-light.
The results announcement will be on Feb 14. we are just weeks away from what i think will be a turning point in how the market will rate this stock. if a PE of just 10 is accorded, the stock is worth about $1 (compared to 74.5 cts today).
I believe it's worth at least 15 x becos of its great track record and the high chance of continuing to deliver the best of results.