BestWorld productBest World is a leading direct seller of premium skincare, health supplements and wellness products, such as its best-selling DR's Secret skincare range. (Photo: Company)

BEST WORLD INTERNATIONAL has emerged as a top gainer on SGX in the past year (if  you exclude the 2,000% gain of ISR Capital which is under probe). 

At the beginning of 2016, Best World's stock price was 26.8c. At end-2016, it closed at $1.34, up a whopping 5 times. 

Its run is not over, according to Maybank and CIMB analysts. Their consensus target price is $2.185, translating into upside potential of 63%.


huang ban chin

“We are targeting to be among China's top 20 direct sellers in 3 to 5 years and Taiwan's top 5 by 2017.”


- Huang Ban Chin
Executive Director and COO
Best World International
 

China is the world's second largest direct-selling market, worth US$35.5 billion in 2015 and growing at 19% per annum.

In November, Best World secured a direct selling licence for Hangzhou, the capital of Zhejiang and the most populous city in the province.

The acceptance of Best World products has been gaining momentum in China.

Before receiving the licence, revenue contribution from China through its export model had been surging: it doubled to S$42.0 million (up 216.9%) year-on-year for 9MFY2016.

This represents 30.2% of Group revenue.

Management believes that the transition from an export model to a direct-selling business model in China, as well as having overcome initial regulatory hurdles for direct selling licenses for other PRC cities, will be reflected in its bottom line by FY2018.


The tables below show the top 20 gainers and losers of 2016. Top gainers with a PE ratio of less than 15 times are highlighted.

Top 20
Gainers
Total Return Stock Price
(end-2016)
PE
BEST WORLD 416% $1.34 14.0
MERCURIUS CAPITAL 200% 3c -
S I2I 196.8% 174c 4.3
CITYNEON 195.3% 94.5c 30.4
AEM HOLDINGS 195.3% 86c 4.7
SING MEDICAL GROUP 166.9% 43.5c 169.0
CHINA KANGDA FOOD 159.1% 28.5c -
EQUATION SUMMIT 140% 1.2c -
JASPER INVESTMENT 137.5% 1.9c 726
CNMC GOLDMINE 136.8% 43.5c 8.5
TSH CORP 133.4% 2.8c -
CWG INTERNATIONAL 127.8% 16.4c -
MM2 ASIA 126.1% 45.5c 56.4
ALLIED TECH 120% 2.2c --
KODA 114.5% 82c 8.4
FOOD EMPIRE 114.3% 45c 19.6
800 SUPER 107.2% 96.5c 10.3
CHINA AVIATION 105.5% 140c 10.1
GSH CORP 104.4% 51c 157.3
CHINA FLEXIBLE 101.2% 75.5c -
Top 20
Losers
Total Return Stock Price PE
SERRANO -96.9 0.2c -
SWEE HONG -92.9 0.9c 3.0
OKH GLOBAL -91.0 6c 3.2
KOYO INTERNATIONAL -83.9 5.9c 19.6
UNITED FOOD -81.5 2.8c -
A-SONIC AEROSPACE -81.1 17.3c -
INFORMATICS -80.0 15.2c -
STRATECH GROUP -78.0 8.8c -
USP GROUP -77.2 9.8c 0.8
NICO STEEL -76.7 1.4c -
DRAGON GROUP -75.4 1.4c -
MARCO POLO MARINE -75.2 5.2c -
TRANSCORP -75.2 3.3c -
MAGNUS ENERGY -75.0 0.1c -
MMP RESOURCES -75.0 0.3c -
FAR EAST GROUP -75.0 3.5c -
LERENO BIO-CHEM -71.4 2c -
LIONGOLD CORP -71.4 0.2c -
AUSGROUP -70.7 4.6c -
GAYLIN -69.8 12.4c -

The above total return data from Bloomberg includes capital adjustments and dividends over the year to 30 Dec 2016.

BT 2016 Gainers Losers optThe Business Times last Saturday published its version of top gainers some of whose figures are very incorrect.

The BT table (left) showed ISR Capital as the top gainer with 8,179% gain.

But from 0.6 cent to 12.7 cents is actually about 2,000%. (The stock has been suspended since late Nov and is under a cloud ).

Eucon, to which BT ascribed a gain of about 430%, actually had a negative return of 7% (from 3 cents to 2.8 cents).

Did Blumont turn in a 512% gain?

Nope, it was minus 33%. And Abundance International's gain was nowhere near as abundant as reported.

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Comments  

+1 #2 Contrarian 2017-02-14 21:14
Another splendid quarterly results from KODA.

Top 5 gainers today... up to 98cts. Here are the sales, gross profit, gross margin %, net profit, Profit Before Tax (figures are in USD)
Their cash jumped to US$6M, NAV is 86cts USD (S$1.22). Debt continues to reduce on a very healthy balanced sheet.

Q1 2017 Q2 2017
$11,765,000 $13,441,000
$3,339,000 $4,003,000
28.4% 29.8%
$1,261,000 $1,398,000
10.7% 10.4%
$3.18 $3.84

In the next few months, the company will be starting a tmall.com online store to get sales, and for their franchisees to deliver.
+1 #1 Contrarian 2017-01-28 21:52
KODA is a gem recovery play.

1. After years of restructuring,i t is now growing the COMMUNE brand via franchising in China. The plan is to sign up 100 franchisees in 2 years. They are also setting up tmall online presence in next few mths

2. The focus on key accounts is showing results.

3. At $20M market cap, this coy has a solid balance sheet and is poised to more than double its earnings. Current valuation is at Price to Book of 0.6

Still not late to load up!!!
 

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