Best World International – The Best is Yet to Come
BEST WORLD INTERNATIONAL- The Best is Yet to Come
| For more information, please contact:
Yit Sung NGO /Sheryl SIM Tel: +65 6438 2990 |
| TICKER: | BEST SP |
| SHARE PRICE: | S$0.40 |
| MARKET CAP: | S$88m |
| Growing revenue driven by success in China and Taiwan
Best World, a regional multi-level marketing operator for healthcare and wellness products, has seen its revenue grow at a CAGR of 57.3% p.a. over the past two years. The performance was bolstered by the success of its marketing campaigns in Taiwan, and its entry into the China retail and wholesale markets. To sustain the growth momentum, Best World opened a regional centre in Kaohsiung recently to expand into southern Taiwan. It is also awaiting the approval for a direct-selling license in China to finally open its doors to this mammoth market. |
| Growing margins with economies of scale
Best World’s recurring EBITDA margin has improved to 19.2% for FY2015, from 7.8% for FY2013. Administrative expense as a percentage of revenue has declined correspondingly, signaling that the margin improvement was driven by greater economies of scale. To improve margins further, Best World is planning to shift its production from third-party manufacturers to its own facilities in China. |
| Trading below 18-month average P/E
Best World is currently trading at a P/E of 8.7 times, below its 18-month average of 10.3 times, and supported by the prospects of further revenue and margin growth. |
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