Best World: (S$1.15) Awarded China direct selling license; major re-rating catalyst
- MOFCOM has granted multi-channel distributor Best World its highly anticipated direct selling license in China, 9-12 months ahead of its schedule.
- Management expects sales growth ahead to be explosive given the immense size of the Chinese market.
- We expect sales mix derived in China to convert from export segment to direct sales, where profitability will be enhanced as products are priced higher in direct selling.
- On valuations at $1.15/share, Best World trades at a forward P/E of 11x, an undeserved 68% discount to the global peer average of 18.5x.
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