To recap, the distributor of cosmetics and health supplements via the direct-selling method, exceeded expectations in every quarter in FY16. 4Q16’s net profit grew 231% y-o-y, bringing FY16’s net profit to a new record high of $34.6 million. The earnings beat was mostly driven by higher sales, thanks to higher demand for its DR’s Secret skincare range, and helped further by operating leverage.
SINGAPORE (Feb 23): CIMB is maintaining its “add” on Best World International with higher target price of $2.97, bullish about the group’s prospects in China, the second-largest direct-selling market in the world.
CIMB says the excitement surrounding the stock’s earnings growth over FY17-19 has mostly been on further penetration into China upon full conversion to a direct-selling model. In 4Q and FY16, sales in China grew a strong 143% and 193% y-o-y respectively.
