SEHK:3358

Stock Analysis Report

Executive Summary

Bestway Global Holding Inc., an investment holding company, designs, develops, manufactures, and sells a range of outdoor leisure products primarily under the BESTWAY brand in Mainland China, Europe, North America, the Asia-Pacific, and internationally.

Rewards

Trading at 44.5% below its fair value

Earnings are forecast to grow 20.67% per year

Earnings grew by 7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Bestway Global Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3358 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

3358

0.9%

HK Leisure

2.2%

HK Market


1 Year Return

-11.3%

3358

-20.4%

HK Leisure

-0.8%

HK Market

Return vs Industry: 3358 exceeded the Hong Kong Leisure industry which returned -20.4% over the past year.

Return vs Market: 3358 underperformed the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

3358IndustryMarket
7 Day1.0%0.9%2.2%
30 Day-4.8%-6.6%-0.6%
90 Day-17.2%-13.3%-0.9%
1 Year-8.9%-11.3%-17.0%-20.4%2.8%-0.8%
3 Yearn/a-37.5%-41.9%19.5%7.4%
5 Yearn/a-48.8%-51.5%20.7%0.5%

Price Volatility Vs. Market

How volatile is Bestway Global Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bestway Global Holding undervalued compared to its fair value and its price relative to the market?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3358 (HK$2.98) is trading below our estimate of fair value (HK$5.37)

Significantly Below Fair Value: 3358 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3358 is good value based on its PE Ratio (7.8x) compared to the Leisure industry average (7.9x).

PE vs Market: 3358 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3358 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 3358 is overvalued based on its PB Ratio (0.9x) compared to the HK Leisure industry average (0.8x).


Next Steps

Future Growth

How is Bestway Global Holding forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3358's forecast earnings growth (20.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 3358's earnings (20.7% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3358's revenue (12.7% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 3358's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3358's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Bestway Global Holding performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3358 has high quality earnings.

Growing Profit Margin: 3358's current net profit margins (5.5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 3358's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: 3358's earnings growth over the past year (7%) is below its 5-year average (20.6% per year).

Earnings vs Industry: 3358 earnings growth over the past year (7%) exceeded the Leisure industry -9.2%.


Return on Equity

High ROE: 3358's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bestway Global Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 3358's short term assets ($659.8M) exceed its short term liabilities ($436.4M).

Long Term Liabilities: 3358's short term assets ($659.8M) exceed its long term liabilities ($137.1M).


Debt to Equity History and Analysis

Debt Level: 3358's debt to equity ratio (73.1%) is considered high.

Reducing Debt: Insufficient data to determine if 3358's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3358's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: 3358's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: 3358 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3358's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Bestway Global Holding's current dividend yield, its reliability and sustainability?

3.22%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.3%markettop25%6.2%industryaverage5.0%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: 3358's dividend (3.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3358's dividend (3.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3358 has been paying a dividend for less than 10 years.

Growing Dividend: 3358 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.2%), 3358's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3358's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

Management

What is the CEO of Bestway Global Holding's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Qiang Zhu (51yo)

0yrs

Tenure

US$155,739

Compensation

Mr. Qiang Zhu serves as Chief Executive Officer at Bestway Global Holding Inc. Mr. Zhu serves as Chairman at Bestway Global Holding Inc and has been its Executive Director since June 25, 2012. 


CEO Compensation Analysis

Compensation vs Market: Qiang's total compensation ($USD155.74K) is below average for companies of similar size in the Hong Kong market ($USD332.89K).

Compensation vs Earnings: Qiang's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

49yo

Average Age

Experienced Management: 3358's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 3358's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$530,40108 Apr 19
Qiang Zhu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares156,000
Max PriceUS$3.40
BuyUS$457,65008 Apr 19
Qiang Zhu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares135,000
Max PriceUS$3.39
BuyUS$227,13008 Apr 19
Qiang Zhu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares67,000
Max PriceUS$3.39
BuyUS$854,07001 Apr 19
Qiang Zhu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares249,000
Max PriceUS$3.43
BuyUS$799,36501 Apr 19
Qiang Zhu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares241,500
Max PriceUS$3.31

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Management Team

  • Yee Man Choy (51yo)

    Joint Company Secretary

    • Tenure: 2.6yrs
  • Qiang Zhu (51yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$155.74k
  • Feng Liu (49yo)

    Executive VP

    • Tenure: 7.5yrs
    • Compensation: US$73.45k
  • Guozheng Tan (51yo)

    VP & Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$80.61k
  • Kaifeng Duan (45yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: US$68.05k
  • Wei Zhao (50yo)

    Joint Company Secretary

    • Tenure: 2.6yrs
  • Patrizio Fumagalli (46yo)

    Chief Strategic Officer

    • Tenure: 2.9yrs
  • Yu Yan (44yo)

    General Manager of Global Sales Division

    • Tenure: 5.4yrs
  • Hui Wang (37yo)

    Head of Capital Market

    • Tenure: 0yrs

Board Members

  • Guoqiang Dai (67yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$30.87k
  • Yiu Kin Lam (64yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$29.92k
  • Qiang Zhu (51yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$155.74k
  • Feng Liu (49yo)

    Executive VP

    • Tenure: 7.5yrs
    • Compensation: US$73.45k
  • Guozheng Tan (51yo)

    VP & Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$80.61k
  • Kaifeng Duan (45yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: US$68.05k
  • Zhixian Yao (69yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$30.87k

Company Information

Bestway Global Holding Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bestway Global Holding Inc.
  • Ticker: 3358
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$3.175b
  • Shares outstanding: 1.06b
  • Website: https://www.bestwaycorp.com

Number of Employees


Location

  • Bestway Global Holding Inc.
  • Bestway Center
  • No. 3065 CaoAn Road
  • Shanghai
  • 201812
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3358SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017

Biography

Bestway Global Holding Inc., an investment holding company, designs, develops, manufactures, and sells a range of outdoor leisure products primarily under the BESTWAY brand in Mainland China, Europe, North ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 13:05
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.