Best World

[Millionfaith]

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)