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yeng wrote: best world's still very attractively priced, in my view.
the share price of $1.56 means market cap is $345 million.
the half-year profit of $13.3 m x 2 == $26.6 m for the full year.
therefore, the PE is only 13X.
Of course, I expect full year earnings to be more than $26.6 m because of the stronger 2H.
so the PE may be only 10-11. Still attractive. dyodd
lotustpsll wrote: I don’t think we should get too ahead of ourselves in projecting the profitability numbers.
BW is hitting the right notes and riding the secular trends of healthcare/beauty care sectors in Taiwan and China. Based on the various financial metrics of EPS, NPAT, ROE, ROA, Revenue Growth etc, 2Q17 was a record QTR for BW. The MLM business model is sustaining a strong GPM and this is critically important.
As I have said before, a mix of Chinese entrepreneurship with a viable/sustainable MLM business, this is an explosive combination.
There is a lot going for BW and its shareholders now. The Management and Key directors have delivered thus far. Very importantly, the company must ensure the following (not exhaustive) are met at all times:-
- Quality of products must be assured
- New product offerings must be of high quality (absolutely, no compromise)
- Proper training of its Distributors
- Distributors must adhere to Code Of Ethics
- Strict Compliance with Corporate Governance
- SGX listing rules must be complied with
- Adherence to International Accounting standards
- Compliance with DS regulations in countries with they operate
Based on the history of corporate failures, it is often when success hits the head, the above standards (notably regulatory and governance) are compromised.
Management and the distributors are the key to BW’s success and they have delivered strongly. BW must continue to stay abreast and adopt the best practice of DS strategies and ethics.
I wish the Management of BW well, and as I have often said, “stay disciplined and focused”.
|Best World Int.||1.240||-0.010|
|Federal Int. (2000)||0.250||-|
|Lian Beng Group||0.630||-|
|Trek 2000 Int.||0.156||0.006|
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