Best World International's market cap has exceeded S$1 billion today for the first time in its 14 years as a listed company.

The stock closed at $1.84, up 11 cents from yesterday, for a market cap of S$1.012 billion. The trailing PE is 18.

What an awesome run from its IPO price of just 8 cents (adjusted for 3 bonus issues and one stock split through the years). 

 

It is one of the best performers ever listed on the Singapore Exchange.

From a market cap of $37.5 million at its IPO, Best World, which develops, manufactures and distributes premium skincare, personal care, nutritional and wellness products to its member customers in the region, has overcome much investor skepticism along the way.

But the believers .... Those who have held the stock from Year 1 would be happily sitting on 23X their invested capital. 

outlet zhongshanA Best World service outlet in Zhongshan, in Guangdong province, which was set up by a local distributor. Photo: Internet


exhibition@ Expo Singapore: Visitors learn more about Best World's Dr's Secret range of skincare products. Photo: CompanyWhat if we add in the dividends that Best World has delivered through the years? What would be the total gain for Mr Long-Term Investor? It's 24x.

Here are the numbers:


Best World's IPO took place in July 2004 at 30 cents. The business didn't excite too many investors, and the stock price ended the year unchanged at 30 cents.

Let's say you bought $10,000 worth of its shares then. That gave you 33,333 shares (rounded for simplicity).

You held on tightly to them and today -- 14 years later -- the original bunch has become 125,000 shares through 3 bonus issues and one stock split.

Through the years, the earnings of Best World trended up, interrupted mainly by the global financial crisis of 2007-2008.

Now, those 125,000 shares are worth $230,000 (at $1.84 a share).

Adding to the capital gain are dividends, derived from Best World's high cashflow business.

The original bunch of 33,333 shares (which then multiplied through three bonus issues and a stock split) has attracted $14,352 in dividends. 

Here's the breakdown -->

Event

IPO

1-for-5 bonus

1-for-4 bonus

1-for-4 bonus

2-for-1 split

When

2004

Mar-05

Sep-07

Sep-16

May-17

No. of shares after event

33,333.33

40,0000

50,000

62,500

125,000

Dividends (cts)

0.625

6.61

15.5

3

1.5

Period of dividends

2014

Aug 2005- Oct 2007

May 2008 – Sept 2016

May 2017

Sept 17

Total dividends

$208.33

$2,644

$7,750

$1,875

$1,875

 

Put another way, the original $10,000 invested in the shares have been more than repaid through dividends alone. 

Thus, in total, the $10,000 invested has become $244,352 (ie $14,352 + $230,000). 

Reaching S$1 billion for the first time is a cause for Best World to celebrate wildly -- and the big trend is pointing up.

With a 14-year track record as a listco behind it, Best World should not surprise anyone if it achieves amazing success in the biggest market yet -- China.

Best World is now at the start of a foray into the business of direct-selling its skincare products in China (under a new business segment "China Wholesale" which will effectively replace the Export segment).

The prospects are as bullish as they come. 
See: 


In its first wave this year, it targets 9 cities in seven provinces with a combined population that is about 10X that of the 3 Taiwanese cities (Taipei, Taichung and Kaoshiung) where Best World has been enjoying sweet success in recent years. 


dorahoan3.18Dr Dora Hoan, co-chairman of Best World. She owns 23.185% of the company (including her 50% interest in D2 Investment which owns 35.05% of Best World). Photo: FacebookThe key drivers of the company -- Dora Hoan, Doreen Tan and Huang Ban Chin -- are firmly behind the wheel and own an aggregate of 50.6% of the company which is a lot of skin in the game.

doreentan8.16Dr Doreen Tan, co-chairman of Best World: Like Dora, she owns 23.185% of the company (including her 50% interest in D2 Investment which owns 35.05% of Best World).In fact, they have been behind the wheel many years before Best World's IPO.

Before they co-founded Best World, Dr Dora Hoan and Dr Doreen Tan each had over 10 years' experience in the direct selling, skin care and nutritional supplements industries.

huangbanchin2.18Huang Ban Chin, executive director and chief operating officer: Owns 4.23% stake in Best World. NextInsight photoBest World was co-founded in 1990 -- which means it is 28 years old this year.

The 28-year span thus was neatly and equally split between being a private enterprise and, subsequently, being a listed company. 

Executive director and chief operating officer Huang Ban Chin marks his 26th year with Best World this year.

He joined as marketing manager after leaving the National University of Singapore in 1992 with a Bachelor of Science degree.


Comments  

+1 #1 lotustpsll 2018-03-16 08:17
Wonderful run and has rewarded long term investors. I invested 3 years ago after reading an article at Nextinsight. My first 10 baggers.

Thanks to Nextinsight.
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