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Best World
10-11-2018, 08:43 AM.
Post: #841
RE: Best World
(09-11-2018, 08:15 AM)Boon Wrote: Hi Chialc88,
You were expecting a "good fight" but it seems like there was none. Instead, the China agent had to pay a substantial amount of one-time trademark royalty fee to BWI for the termination of his/her agency contract. Would you believe it? Ha-ha!

Good to see you again.
Pretty chill and pretty cool.

HBC must had been watching your posts intensely.
He took the opportunity to demonstrate his 101% control on China export partner.

宝贝, 加油!

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11-11-2018, 11:54 AM.
Post: #842
RE: Best World
Interesting sets of numbers from 3Q/9M2018 results to ponder over:
 
# 1:
Cost of Sales (or COGS):
3Q2017 = 15.355
3Q2018 = 14.809 (DOWN 3.6%)
9M2017= 44.493
9M2018 =30.921 (DOWN 30.5%)
 
Assuming purchasing costs (i.e. the price BWI pays their suppliers to manufacture their products) remain unchanged, what was the actual DEMAND or CONSUMPTION for BWI’s products?
UP, FLAT or DOWN?
 
# 2:
Revenue (SGD) million:
3Q2017 = 46.780
3Q2018 = 92.067 (UP 96.8%) 
9M2017= 146.807
9M2018 = 152.457 (UP 3.8%)  
 
Distribution Costs (DC):
3Q2017 =  7.460
3Q2018 = 32.707 (UP  338.4%%) 
9M2017= 32.186
9M2018 =52.922 (UP 64.4%)
 
Administrative Expenses (AE):
3Q2017 = 8.162
3Q2018 = 16.535 (UP  102.6%) 
9M2017= 26.348
9M2018 =31.928 (UP 21.2%)
 
In 3Q, revenue has gone UP 96.8% (mainly due to higher price point under the Franchise segment), however, Franchise related expenses has resulted in DC and AE going UP by 338.4% and 102.6% respectively.
 
What does it say about the NPM (net profit margin) of Franchise segment compared to Export segment? BETTER, SAME, WORSE, COULDN”T TELL ?
 
# 3:
NPAT:
3Q2017 = 12.182
3Q2018 = 29.887 (UP 145.3%)
9M2017= 33.870
9M2018 =44.786 (UP 32.2%)
 
Other Operating Income (OOI):
3Q2017 = 1.159
3Q2018 = 9.061 (UP 681.8%) 
9M2017= 5.471
9M2018 =17.380 (UP 220.8%)
 
WITHOUT the Other Operating Income, how would the NPAT look like?
 
# 4 :
Profit Before Tax (PBT):
3Q2017 = 17.196
3Q2018 = 35.761 (UP 108%)
9M2017= 47.612
9M2018 =53.700 (UP 12.8%)
 
Income Tax Expense:
3Q2017 = 5.123
3Q2018 = 5.993 (UP 17.0%)
9M2017= 14.116
9M2018 = 9.166 (DOWN 35.1%)
 
Income Tax Expense / PBT:
3Q2017 = 5.123/17.196= 29.8%
3Q2018 = 5.993/35.761= 16.8%
9M2017= 14.116/47.612=29.6%
9M2018 = 9.166/53.700= 17.1%
 
Income tax as a proportion of PBT has DECREASED, why?
 
China is a HIGH tax regime, HIGHER proportion of profit is being derived from BWI’s China subsidiary, BWCP, under the Franchise model, one would have expected tax bill as proportion of PBT to increase, wouldn’t it?
 
# 5:
NPAT (SGD million):
FY2013 = 1,429
FY2014 = 4.052 (+184%)
FY2015 = 10.104 (+149%)
FY2016 = 34.569 (+242%)
FY2017 = 55.673 (+  61%)
1Q2018 =  5.771
2Q2018 = 14.899
3Q2018 = 29.887      (9M2018= 44.786)
4Q2018 = ??????? (=10.887 to make FY2018=FY2017) 
FY2018 = ???????
 
What to expect for 4Q/FY2018 results ?
 
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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15-11-2018, 09:20 AM.
Post: #843
RE: Best World
BEST WORLD: Stunning 3Q18 profit, cashflow; now, a billion-dollar company
Best World International delivered a stunning set of 3Q18 results that included several record achievements as its China, Taiwan and Indonesia markets grew significantly.

Its 3Q18 profit of $29.9 million (+145% y-o-y) was its best quarterly ever since the company's listing in 2004 on the Singapore Exchange.

[Image: doreen-tan.jpg]

Doreen Tan, Co-Chairman and President of Best World.
[size=undefined][size=undefined]This was boosted by "other operating income", which increased by 681.8% to $9.1 million in 3Q2018.

The company said this was "mainly due to a one-time trademark royalty fee received from Best World's China agent prior to the termination of the agency arrangement".

Best World's operating cashflow of $52.8 million was another "never before" event.

So was the net profit margin of 32.5%, boosted by the "other operating income".[/size][/size]

http://www.sharejunction.com/sharejunction/index.html

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19-11-2018, 11:05 PM.
Post: #844
RE: Best World
Hmmm … BW’s share price is on a roll recently and even touched an all time high once again today at $2.20.  Is dreamybear dreaming again ??

There is a post in sharejunction which shared that institutional investors had been buying whereas retail investors had been selling. (https://www.nextinsight.net/forum/3-sgx-...=594#24572)

Financials
EPS(2017) : $0.1012.
Assuming a 20% increase in EPS, EPS(2018) : $0.12(i.e. 1.2 * $0.1012). Applying a PE ratio of 15,18 and 20 implies the share price to be  $1.8, $2.16 and $2.4 respectively (i.e. $0.12*15, *18, *20).  
Note : YTD(Q1-Q3) EPS(2018)  is $0.0815. (Q4 is usually the strongest quarter

Business prospects
Based on 3Q2018 financial report, BW has 28 franchisees, spread over 10 provinces & 1 municipality in China and the total China revenue is currently at $74.5 million.

However, China has, in total 23 provinces, 4 municipalities, 5 autonomous regions & 2 special administrative regions (https://www.travelchinaguide.com/map/china_map.htm). With a rising middle class, the Chinese population focusing more on health & premium products and if BW can continue to sign more and more franchisess to cover entire China, logically, the revenue/profit growth potential for the years ahead is enormous.  Dodgy

In fact, Nuskin’s mainland China revenue in Yr 2013 was a whopping USD$1,005,395 !!!  Can BW China catch up to Nuskin China one day ? Well, only time can tell.   Confused

So, I think either current investors have increased their valuation of BW or pricing in its future China growth or perhaps both. The best is hopefully, yet to be.  Big Grin

PS : For those who are interested, a RHB analyst wrote a detailed report on BW, including the new China franchise operations (https://www.nextinsight.net/story-archiv...-23-oct-18).

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21-11-2018, 08:05 AM.
Post: #845
RE: Best World
[attachment=1648 Wrote: Boon pid='150284' dateline='1541908461']Interesting sets of numbers from 3Q/9M2018 results to ponder over:
 
# 1:
Cost of Sales (or COGS):
3Q2017 = 15.355
3Q2018 = 14.809 (DOWN 3.6%)
9M2017= 44.493
9M2018 =30.921 (DOWN 30.5%)
 
Assuming purchasing costs (i.e. the price BWI pays their suppliers to manufacture their products) remain unchanged, what was the actual DEMAND or CONSUMPTION for BWI’s products?
UP, FLAT or DOWN?
 
# 2:
Revenue (SGD) million:
3Q2017 = 46.780
3Q2018 = 92.067 (UP 96.8%) 
9M2017= 146.807
9M2018 = 152.457 (UP 3.8%)  
 
Distribution Costs (DC):
3Q2017 =  7.460
3Q2018 = 32.707 (UP  338.4%%) 
9M2017= 32.186
9M2018 =52.922 (UP 64.4%)
 
Administrative Expenses (AE):
3Q2017 = 8.162
3Q2018 = 16.535 (UP  102.6%) 
9M2017= 26.348
9M2018 =31.928 (UP 21.2%)
 
In 3Q, revenue has gone UP 96.8% (mainly due to higher price point under the Franchise segment), however, Franchise related expenses has resulted in DC and AE going UP by 338.4% and 102.6% respectively.
 
What does it say about the NPM (net profit margin) of Franchise segment compared to Export segment? BETTER, SAME, WORSE, COULDN”T TELL ?
 
# 3:
NPAT:
3Q2017 = 12.182
3Q2018 = 29.887 (UP 145.3%)
9M2017= 33.870
9M2018 =44.786 (UP 32.2%)
 
Other Operating Income (OOI):
3Q2017 = 1.159
3Q2018 = 9.061 (UP 681.8%) 
9M2017= 5.471
9M2018 =17.380 (UP 220.8%)
 
WITHOUT the Other Operating Income, how would the NPAT look like?
 
# 4 :
Profit Before Tax (PBT):
3Q2017 = 17.196
3Q2018 = 35.761 (UP 108%)
9M2017= 47.612
9M2018 =53.700 (UP 12.8%)
 
Income Tax Expense:
3Q2017 = 5.123
3Q2018 = 5.993 (UP 17.0%)
9M2017= 14.116
9M2018 = 9.166 (DOWN 35.1%)
 
Income Tax Expense / PBT:
3Q2017 = 5.123/17.196= 29.8%
3Q2018 = 5.993/35.761= 16.8%
9M2017= 14.116/47.612=29.6%
9M2018 = 9.166/53.700= 17.1%
 
Income tax as a proportion of PBT has DECREASED, why?
 
China is a HIGH tax regime, HIGHER proportion of profit is being derived from BWI’s China subsidiary, BWCP, under the Franchise model, one would have expected tax bill as proportion of PBT to increase, wouldn’t it?
 
# 5:
NPAT (SGD million):
FY2013 = 1,429
FY2014 = 4.052 (+184%)
FY2015 = 10.104 (+149%)
FY2016 = 34.569 (+242%)
FY2017 = 55.673 (+  61%)
1Q2018 =  5.771
2Q2018 = 14.899
3Q2018 = 29.887      (9M2018= 44.786)
4Q2018 = ??????? (=10.887 to make FY2018=FY2017) 
FY2018 = ???????
 
What to expect for 4Q/FY2018 results ?
 

Well, 
 
The China “Export Model” has come and gone. It existed for a number of years but how well do investors really understand about how it works?
 
How BWI managed to establish “linkage” with its “members” and tracking them under the China Export model remains a “mystery” to me.......
 
The deliberately created “China Wholesale model” did not last long. It came and disappeared in thin air with a stroke of a pen just like that............
 
The China Franchise model has delivered its maiden full quarterly contribution in 3Q2018, rewriting many quarterly and 9Monthly records. How much do investors really understand how it works? 


Attached Files
.pdf   3Q2018_BWI.pdf (Size: 93.27 KB / Downloads: 11)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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04-12-2018, 06:03 PM.
Post: #846
RE: Best World
Does anyone knows what is the impact of this type of award, does it lead to ETF/institutional investors/unit trust's interest, or is it just for "company achievement trophy to be stored in a cupboard" and perhaps better product marketing ?  

Recall after winning in 2007/2008, company's business and share price languished..... Huh


The announcement also stated that the Tuas facility will only commence in 1Q2020(seems to be a delay as I recalled previously it shd start around 2018/2019; I think it may be due to mgmt wanting to increase its original planned capacity to meet the demand in China). Hopefully, the demand for its products are still high in 2020. Dodgy
 
-------------------------------------------

Best World Awarded Forbes Asia “200 Best Under A Billion” for the Third Time

Singapore, 30 November 2018

Mainboard-listed Best World International Limited (“Best World” or the “Group”), a Singapore headquartered company specialising in the development, production and distribution of premium skincare, personal care, nutritional and wellness products to its member customers, is pleased to announce that the Group was  awarded  as “200 Best Under A Billion” by Forbes Asia for the third time. The Group has previously earned its spot on the“200 Best Under A Billion” list in the years of 2007 and 2008........

More details on http://bestworld.listedcompany.com/newsroom.html

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23-12-2018, 09:21 PM.
Post: #847
RE: Best World
Finally found the time to take a look at Best World 3Q2018 financials.

Boon,

Good points raised.

Similarly, I find it very puzzling that COGS remain constant while revenue doubled.
I believe hints can be found if one references the earlier years of 2014-2015, where Best World has minimal Export revenue and achieved gross margins of 75%-80%. This gross margin range is also in line with Best World 3Q2018 guidance. Working backwards based on 2017 revenue segment and assume 77.5% gross margins, one can estimate that the Export segment has a gross margin of 59.1% compared to Direct Selling gross margin of 77.5%.
Although Export segment has lower margin by 18.4%, there are no expenses in terms of distribution costs and there is income from China Agent. One can still estimate which model is more profitable, but I am lazy to work the numbers. However, the more profitable model may not be the better model for the company in the long run.
Moving on, assuming that the gross margins for Direct Selling remains unchanged, 3Q2018 COGS (DS) would be $6.8 million. That would give 3Q2018 COGS (Franchise) of $8 million. Assume same products and revenue mix for DS and Franchise, hence the volume for Franchise is just 16% more than that of DS. On the other hand, the revenue for Franchise is double that of DS. This is interesting. Why are Best World products almost double in price in China compared to other regions? Is the higher price point sustainable?
Using the same approach, it can be calculated that 3Q2017 COGS (Export) dropped from $10.7 million to 3Q2018 COGS (Franchise) of $8 million. So there is an approximately 25% drop in volume sold.

Regarding the tax rate, Best World gives the following reasoning: "tax effect of Group consolidation adjustment on unrealised profits on inventories held by our subsidiaries as at 30 September 2018 and a higher provision for Group tax expenses for the nine months ended 30 September 2017." While the low tax rate is peculiar, I doubt that there is accounting fraud.

Not vested, but interested in Best World because a close acquaintance of mine has a stake.

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14-01-2019, 06:25 PM.
Post: #848
RE: Best World
PROPOSED SUBSCRIPTION OF SHARES IN CELLIGENICS PTE. LTD.
14 Jan 2019
.........
Celligenics is a biomedical A*STAR spin-off start-up company incorporated on 29 August 2016 and headquartered in Singapore, which is currently in the early stages of research and development in the area of stem cells and has research and development collaborations with a scientific institution and institute of higher learning in Singapore....
.........
As at the date of this announcement, Mr. Huang Ban Chin, an Executive Director and the Chief Operating Officer of the Company, holds a 17.0% equity interest in Celligenics.

----------------------
More details at http://bestworld.listedcompany.com/newsroom.html
https://sg.linkedin.com/company/celligenics

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08-02-2019, 05:13 PM.
Post: #849
RE: Best World
The management of B.W. really reward all investors , especially the retail investors with good dividend and capital appreciation.
What is the point for companies who claimed they create value in the companies but do not benefit the investors who are vested with them for many years ?
Hope SLC can learn from B.W. !

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