Best World

(26-02-2018, 08:15 PM)cyclone Wrote: Best World FY2017 profit surges 61.0% to record high of S$55.7m

Highlights :
* Revenue grew 10.0% to S$220.9 million due to increase in Export to China and growth in Singapore & Other markets
* Strong balance sheet with cash position of S$82.2 million
* Proposes final dividend of 2.6 Singapore cents per share
* Expansion of direct selling license coverage in China sets stage for growth in FY2018 and beyond
* Sales from China almost doubled to S$110.5 million, representing a 90.9% increase YoY in FY2017
* Revenue from the Group’s key market of Taiwan declined 28.5% YoY to S$88.0 million in FY2017
* The total membership for the Group’s Direct Selling business as at 31 December 2017 increased 2.2% to 490,041 members, when compared to 30 September 2017.

More details in :
1. http://infopub.sgx.com/FileOpen/BWG%20FY...eID=490214
2. http://infopub.sgx.com/FileOpen/BW%20FY2...eID=490215

“Due to the growing market demand for the Group’s proprietary skincare line DR’s Secret, and in anticipation of the long Chinese New Year holidays in February, our China Export Agent placed their orders for the next three to six months in 4Q2017. As a result, revenue from Export Segment increased by 144.5% to $35.1 million for 4Q2017.”

“As Export Agent had placed their orders for the next three to six months in 4Q2017, there is a possibility that 1Q2018 may be weaker than 1Q2017”.

Executive Director and Group Chief Operating Officer, Mr Huang Ban Chin, commented,
“Despite the prevailing macroeconomic headwinds, we are pleased to deliver yet another strong set of results for FY2017. Our endeavours in the China market continue to pay off with growth momentum sustaining throughout the period. Moving forward, we have several initiatives being lined up; such as the change in business model from Export Segment to Direct Selling and the expansion of our direct selling coverage in China. With a result oriented and motivated team, we believe that this is the beginning of a new growth era for us.”

Comments:
Impressive 4Q2017 results boosted by “up to 6 months advanced ordering ” from China Export Agent.

China Export sales remains the only engine of growth.

How would growth like without the advantage of  the “illegal multi-level- compensation structure”?

Question remains: What initiatives does BWI have in place to keep the team motivated after conversion to DS model under which only single layer commission compensation structure is allowed? 

No progress has been made on the MOFCOM website either

http://zxgl.mofcom.gov.cn/front/getEnter...0400049586

Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

(01-03-2018, 05:36 PM)Value Explorer81 Wrote: Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

So what are the direction and strategies that they want to go and execute? Single or multi-layer compensation structure? Do they have track records and demostrated capabilities operating in an single layer compensation structure environment ?
 
I have been eagerly waiting to see how they would use their high problem solving skill to motivate their sales team under the single layer compensation structure………………………
 
The rock solid BS is probably inadequate to cover potential liability in misleading shareholders.  
 
BWI is not an illegal company but some of its activities were illegal as disclosed by some of their videos for example CGL’s video.
 
To talk and long
To talk and short
To talk and no action
How could you tell ?

(01-03-2018, 05:36 PM)Value Explorer81 Wrote: Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

Hi Value Explorer81,

Thanks for sharing the information from the investor dialogue session.

Although I am happy BW managed to once again increase its profitability, I cannot help but feel wary about its track record. In their FY2017 results, the revenue from Taiwan declined 28.5%  from $123.0 million in FY2016 to $88.0 million in FY2017, even though an explanation was given. However, the decline came after record breaking results in TW last year.

Back in Year2007/2008, Indonesia was also showing a lot of promise, but it ultimately did not end up well(reasons were also provided back then). (Ref : https://www.valuebuddies.com/thread-1033-page-11.html Post #102 for graphical view of revenue by countries - credit to Boon)

As BW has been in Tawiwan for several years and TW has been the strongest mkt for BW DS, I would think the mgmt has a good grasp of the TW market situation. Of course, nothing grows forever, but I have to admit I was caught by surprise by the size of TW decline.

As an investor, of course, I am hoping for the best in its China expansion. It has been an amazing run, by far my most successful (albeit unexpected) investment record - I am thankful everyday.

However, after covering several more China provinces this(and next) year and achieving peak revenues, what's the next mega market after China if the revenues cannot be sustained ? I cannot help but ponder whether the party may be coming to an end soon.

(01-03-2018, 10:23 PM)dreamybear Wrote:

(01-03-2018, 05:36 PM)Value Explorer81 Wrote: Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

Hi Value Explorer81,

Thanks for sharing the information from the investor dialogue session.

Although I am happy BW managed to once again increase its profitability, I cannot help but feel wary about its track record. In their FY2017 results, the revenue from Taiwan declined 28.5%  from $123.0 million in FY2016 to $88.0 million in FY2017, even though an explanation was given. However, the decline came after record breaking results in TW last year.

Back in Year2007/2008, Indonesia was also showing a lot of promise, but it ultimately did not end up well(reasons were also provided back then). (Ref : https://www.valuebuddies.com/thread-1033-page-11.html Post #102 for graphical view of revenue by countries - credit to Boon)

As BW has been in Tawiwan for several years and TW has been the strongest mkt for BW DS, I would think the mgmt has a good grasp of the TW market situation. Of course, nothing grows forever, but I have to admit I was caught by surprise by the size of TW decline.

As an investor, of course, I am hoping for the best in its China expansion. It has been an amazing run, by far my most successful (albeit unexpected) investment record - I am thankful everyday.

However, after covering several more China provinces this(and next) year and achieving peak revenues, what's the next mega market after China if the revenues cannot be sustained ? I cannot help but ponder whether the party may be coming to an end soon.

I was at the result briefing.

According to mgmt:
1. Disciplinary actions were taken on some misconducted/unethical Taiwan leaders, including sacking distributors.
2. The mgmt is actively looking at M&A, particularly for the Japan mkt. Japan is one of the major market as Japanese are receptive to MLM. Hope this answered dreamybear
3. Co is also looking at developing new products, incl beverages. Mgmt believes they can tap on her 490k strong members.
4. Current consumption per member per year is $703, which works out to be less than $60/mth. Mgmt believes there is still room for growth.

This is not a signal to buy or sell. I am just sharing facts provided by the mgmt. If you are interested in the company, please do your own due diligence.

(P/S I have a set of notes from the briefing, if anyone keen or want to discuss, please PM me)

(02-03-2018, 05:33 PM)Millionfaith Wrote:

(01-03-2018, 10:23 PM)dreamybear Wrote:

(01-03-2018, 05:36 PM)Value Explorer81 Wrote: Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

Hi Value Explorer81,

Thanks for sharing the information from the investor dialogue session.

Although I am happy BW managed to once again increase its profitability, I cannot help but feel wary about its track record. In their FY2017 results, the revenue from Taiwan declined 28.5%  from $123.0 million in FY2016 to $88.0 million in FY2017, even though an explanation was given. However, the decline came after record breaking results in TW last year.

Back in Year2007/2008, Indonesia was also showing a lot of promise, but it ultimately did not end up well(reasons were also provided back then). (Ref : https://www.valuebuddies.com/thread-1033-page-11.html Post #102 for graphical view of revenue by countries - credit to Boon)

As BW has been in Tawiwan for several years and TW has been the strongest mkt for BW DS, I would think the mgmt has a good grasp of the TW market situation. Of course, nothing grows forever, but I have to admit I was caught by surprise by the size of TW decline.

As an investor, of course, I am hoping for the best in its China expansion. It has been an amazing run, by far my most successful (albeit unexpected) investment record - I am thankful everyday.

However, after covering several more China provinces this(and next) year and achieving peak revenues, what's the next mega market after China if the revenues cannot be sustained ? I cannot help but ponder whether the party may be coming to an end soon.

I was at the result briefing.

According to mgmt:
1. Disciplinary actions were taken on some misconducted/unethical Taiwan leaders, including sacking distributors.
2. The mgmt is actively looking at M&A, particularly for the Japan mkt. Japan is one of the major market as Japanese are receptive to MLM. Hope this answered dreamybear
3. Co is also looking at developing new products, incl beverages. Mgmt believes they can tap on her 490k strong members.
4. Current consumption per member per year is $703, which works out to be less than $60/mth. Mgmt believes there is still room for growth.

This is not a signal to buy or sell. I am just sharing facts provided by the mgmt. If you are interested in the company, please do your own due diligence.

(P/S I have a set of notes from the briefing, if anyone keen or want to discuss, please PM me)

Ha-ha ! Millionfaith, I believe these figures are not yours but they certainly need to be "dissected", don't you think ? 
 
490,000 members each consuming $ 703 per year  = SGD 344 million per year.
 
However, FY2017 revenue (including Export revenue) only came in at 220 million.

Good thinking Boon.

Although I think item #4 should be referring to the active members of 42,600 (new metrics), which increased in Q4 2017, but decreased from Q2 2017.
I think the company is exaggerating that they can tap on their 490k strong members when many of them are dormant.

(03-03-2018, 09:36 AM)holymage Wrote: Good thinking Boon.

Although I think item #4 should be referring to the active members of 42,600 (new metrics), which increased in Q4 2017, but decreased from Q2 2017.
I think the company is exaggerating that they can tap on their 490k strong members when many of them are dormant.

http://bestworld.listedcompany.com/newsr...202018.pdf

I just discovered that the presentation is actually available on the company website, see page 7, does it make sense?

Millionfaith, thank you for answering my question.

On a separate note, BW seems to have been in Korea since Yr2011 but doesn't appear to have found meaningful success.

I also found some info from World Federation Direct Selling Association which shows Korea to be a much bigger market than Japan. (http://wfdsa.org/wp-content/uploads/2017...6-2017.pdf) Although Japan has a high standard of living, it is facing the challenge of a rapidly aging population which may affect their purchasing power.

As such, I am not sure whether expanding into Japan can bring about much revenue.

I may have missed it, but I think the mgmt did not update about the status of the Tuas factory which is mentioned to start operating by the end of FY2017, in the 2016 AR.

(01-03-2018, 05:36 PM)Value Explorer81 Wrote: Congratulations to BWI shareholders as BWI continue to deliver a healthy set of results for FY 17. I attended BWI investor dialogue on the 27 Feb 2018 at 10am. Their management (Ban Chin) is really very clear on the direction and strategies that they want to go and execute. Base on their track record, they have demonstrated the capabilities and know how to penetrate the Chinese market with great success and they are currently in the midst of replicating the success in more cities and provinces.

There will be problems along the way, there will be risks involve in any business but I am confident of weathering the storms together with best world’s management and team members and also not forgetting to enjoy the successes they will have along the way.

This company have demonstrated strong earning power based on their track record with a long runway for growth and being asset light with low capex to grow. Best world is also lead by capable and high problem solving management who are aligned to shareholders and company has a fortress-like, rock solid balance sheet.

For some people who feel that BWI is an illegal company, you might want to consider taking a short position like Ackman on Herbalife if you are so certain. Whats the point of all talk and no action right?

https://www.bloomberg.com/news/articles/...ium=social

Hi all,

There seems to be instances of forumers "challenging" others to short the stock. The above instance is one, while there is another one in the Tesla thread below:

https://www.valuebuddies.com/thread-3325...#pid146028


Moderators (cyclone, CY09 and weijian) have discussed among themselves - VB is a place to exchange ideas and sharing information, not a place to challenge. We also understand that different people have different posting styles and some of them may seem offensive, strong or challenging in tone. Nonetheless, this act (intended or unintended) can create potential for conflict as it borderlines on "getting personal".

A reminder to all VBs to keep along the thread of exchanging ideas and share information.
House rules have been updated: https://www.valuebuddies.com/thread-1844...#pid146191

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