Monday, July 4, 2016

Best World

Best World: CIMB lifts TP from $1.12 to $1.61 and reiterated its Add rating for the stock
- The multi-level-marketer secured its eagerly awaited direct selling licence in China last week, but will have to set up eight service centres in Hangzhou by Dec 2016 before it can commencing direct selling activities.
- Management sees the milestone achievement as laying the group's growth foundation for the next 5-8 years.
- As focus now shifts to Best World's execution, the gestation period is not expected to be long.
- The broker has revised up Best World's FY17/18e EPS of 12%-47% after factoring higher ASPs for its China business under a direct selling model and raised its TP based on 12.4x FY17e P/E.

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