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.
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.
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.
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).