Thursday, March 31, 2016

Best World

Best World: Unrated note by Financial PR; the best is yet to come
- Revenue grew to $101.7m in FY15, a CAGR of 57.3% per annum over the past two years, bolstered by the success of its marketing campaigns in Taiwan and the entry into China's retail and wholesale markets.
- EBITDA margin has also been on the uprise due to greater economies of scale.
- To improve margins going forward, Best World is planning to shift its production from third-party manufacturers to its own facilities in China.
- Awaiting the approval for a direct-selling license in China, to finally open its doors to this mammoth market.

In a previous note, Market Insight derived that the stock could trade at a fair value of $0.57, based on a conservative P/E of 10x compared with industry average of 14.2x, implying a 43% upside from the current price.

No comments:

Post a Comment