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Bestway Global Holding

SEHK:3358
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3358
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Consumer Durables
Company description

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. The last earnings update was 64 days ago. More info.


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3358 Share Price and Events
7 Day Returns
4.4%
SEHK:3358
-1.2%
HK Leisure
-0.2%
HK Market
1 Year Returns
-12.9%
SEHK:3358
-26.6%
HK Leisure
-6.6%
HK Market
3358 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bestway Global Holding (3358) 4.4% 2% 7.5% -12.9% - -
HK Leisure -1.2% -2.5% -8.3% -26.6% -31.3% -45.6%
HK Market -0.2% 2.3% -5.5% -6.6% 22.5% 4.4%
1 Year Return vs Industry and Market
  • 3358 outperformed the Leisure industry which returned -26.6% over the past year.
  • 3358 underperformed the Market in Hong Kong which returned -6.6% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

3358 Value

 Is Bestway Global Holding undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bestway Global Holding to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bestway Global Holding.

SEHK:3358 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3358
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Leisure Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.937 (1 + (1- 25%) (49.39%))
1.19
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.19 * 5.96%)
9.1%

Discounted Cash Flow Calculation for SEHK:3358 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Bestway Global Holding is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3358 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.1%)
2019 85.00 Analyst x1 77.91
2020 90.00 Analyst x1 75.62
2021 68.00 Analyst x1 52.37
2022 55.14 Est @ -18.91% 38.93
2023 48.18 Est @ -12.63% 31.17
2024 44.21 Est @ -8.24% 26.22
2025 41.92 Est @ -5.17% 22.79
2026 40.66 Est @ -3.02% 20.26
2027 40.04 Est @ -1.51% 18.29
2028 39.86 Est @ -0.46% 16.69
Present value of next 10 years cash flows $380.26
SEHK:3358 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $39.86 × (1 + 2%) ÷ (9.1% – 2%)
$573.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $573.20 ÷ (1 + 9.1%)10
$240.00
SEHK:3358 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $380.26 + $240.00
$620.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $620.26 / 1,058.39
$0.59
SEHK:3358 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:3358)
7.81
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $0.59 x 7.81
HK$4.58
Value per share (HKD) From above. HK$4.58
Current discount Discount to share price of HK$3.59
= -1 x (HK$3.59 - HK$4.58) / HK$4.58
21.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bestway Global Holding is available for.
Intrinsic value
22%
Share price is HK$3.59 vs Future cash flow value of HK$4.58
Current Discount Checks
For Bestway Global Holding to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bestway Global Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bestway Global Holding's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bestway Global Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bestway Global Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3358 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.04
SEHK:3358 Share Price ** SEHK (2019-06-26) in HKD HK$3.59
SEHK:3358 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.46
Hong Kong Leisure Industry PE Ratio Median Figure of 12 Publicly-Listed Leisure Companies 11.67x
Hong Kong Market PE Ratio Median Figure of 1,488 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bestway Global Holding.

SEHK:3358 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3358 Share Price ÷ EPS (both in USD)

= 0.46 ÷ 0.04

11.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bestway Global Holding is good value based on earnings compared to the HK Leisure industry average.
  • Bestway Global Holding is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Bestway Global Holding's expected growth come at a high price?
Raw Data
SEHK:3358 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
23.1%per year
Global Leisure Industry PEG Ratio Median Figure of 28 Publicly-Listed Leisure Companies 1.26x
Hong Kong Market PEG Ratio Median Figure of 470 Publicly-Listed Companies 0.77x

*Line of best fit is calculated by linear regression .

SEHK:3358 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.3x ÷ 23.1%

0.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bestway Global Holding is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Bestway Global Holding's assets?
Raw Data
SEHK:3358 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.39
SEHK:3358 Share Price * SEHK (2019-06-26) in HKD HK$3.59
SEHK:3358 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.46
Hong Kong Leisure Industry PB Ratio Median Figure of 21 Publicly-Listed Leisure Companies 0.93x
Hong Kong Market PB Ratio Median Figure of 2,173 Publicly-Listed Companies 0.93x
SEHK:3358 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3358 Share Price ÷ Book Value per Share (both in USD)

= 0.46 ÷ 0.39

1.19x

* Primary Listing of Bestway Global Holding.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bestway Global Holding is overvalued based on assets compared to the HK Leisure industry average.
X
Value checks
We assess Bestway Global Holding's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Leisure industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Leisure industry average (and greater than 0)? (1 check)
  5. Bestway Global Holding has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3358 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bestway Global Holding expected to grow at an attractive rate?
  • Bestway Global Holding's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Bestway Global Holding's earnings growth is expected to exceed the Hong Kong market average.
  • Bestway Global Holding's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:3358 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3358 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 23.1%
SEHK:3358 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 13%
Hong Kong Leisure Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
Global Leisure Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3358 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3358 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,288 95 92 3
2020-12-31 1,139 95 78 3
2019-12-31 1,008 123 64 4
SEHK:3358 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 865 -27 43
2018-09-30 846 -24 46
2018-06-30 826 -22 48
2018-03-31 774 -5 48
2017-12-31 723 12 47
2017-09-30 688 24 48
2017-06-30 653 36 48
2017-03-31 619 51 46
2016-12-31 585 65 43

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bestway Global Holding's earnings are expected to grow significantly at over 20% yearly.
  • Bestway Global Holding's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3358 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Bestway Global Holding Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3358 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.09 0.10 0.08 3.00
2020-12-31 0.07 0.08 0.07 3.00
2019-12-31 0.06 0.07 0.05 3.00
SEHK:3358 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.04
2018-09-30 0.05
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.06
2017-09-30 0.06
2017-06-30 0.06
2017-03-31 0.06
2016-12-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bestway Global Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bestway Global Holding's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bestway Global Holding has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3358 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bestway Global Holding's growth in the last year to its industry (Leisure).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bestway Global Holding has delivered over 20% year on year earnings growth in the past 5 years.
  • Bestway Global Holding's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bestway Global Holding's 1-year earnings growth is negative, it can't be compared to the HK Leisure industry average.
Earnings and Revenue History
Bestway Global Holding's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bestway Global Holding Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3358 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 865.28 43.06 146.25
2018-09-30 845.65 45.62 142.89
2018-06-30 826.02 48.19 139.85
2018-03-31 774.28 47.82 131.07
2017-12-31 722.55 47.46 121.97
2017-09-30 687.64 47.66 118.09
2017-06-30 652.74 47.86 114.21
2017-03-31 618.63 45.60 108.27
2016-12-31 584.53 43.34 102.34
2015-12-31 513.53 16.46 88.47
2014-12-31 467.91 8.17 78.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bestway Global Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bestway Global Holding used its assets less efficiently than the HK Leisure industry average last year based on Return on Assets.
  • Bestway Global Holding has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bestway Global Holding's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Leisure industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bestway Global Holding has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3358 Health

 How is Bestway Global Holding's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bestway Global Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bestway Global Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bestway Global Holding's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bestway Global Holding's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bestway Global Holding Company Filings, last reported 5 months ago.

SEHK:3358 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 408.91 237.60 49.12
2018-09-30 408.91 237.60 49.12
2018-06-30 416.95 193.98 93.10
2018-03-31 416.95 193.98 93.10
2017-12-31 399.93 157.83 111.89
2017-09-30 399.93 157.83 111.89
2017-06-30 244.15 143.23 86.19
2017-03-31 244.15 143.23 86.19
2016-12-31 203.91 101.44 26.38
2015-12-31 179.52 135.54 31.66
2014-12-31 174.54 118.19 19.03
  • Bestway Global Holding's level of debt (58.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Bestway Global Holding's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess Bestway Global Holding's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bestway Global Holding has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3358 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.68%
Current annual income from Bestway Global Holding dividends. Estimated to be 4.42% next year.
If you bought HK$2,000 of Bestway Global Holding shares you are expected to receive HK$54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bestway Global Holding's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • Bestway Global Holding's dividend is below the markets top 25% of dividend payers in Hong Kong (5.89%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3358 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Hong Kong Leisure Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3358 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.02 3.00
2020-12-31 0.02 3.00
2019-12-31 0.02 3.00
SEHK:3358 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.012 2.685
2019-03-28 0.012 2.714
2018-04-06 0.014 2.898
2018-03-19 0.014 2.535

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Bestway Global Holding has stable dividend payments.
  • Bestway Global Holding only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Bestway Global Holding's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Bestway Global Holding's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bestway Global Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bestway Global Holding has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3358 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Qiang Zhu
COMPENSATION $253,889
AGE 50
CEO Bio

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
  • Qiang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Qiang's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Bestway Global Holding management team in years:

2.1
Average Tenure
48
Average Age
  • The tenure for the Bestway Global Holding management team is about average.
Management Team

Qiang Zhu

TITLE
Chairman & CEO
COMPENSATION
$254K
AGE
50

Kaifeng Duan

TITLE
CFO & Executive Director
COMPENSATION
$68K
AGE
44
TENURE
2.1 yrs

Feng Liu

TITLE
Executive VP
COMPENSATION
$73K
AGE
48
TENURE
0.8 yrs

Guozheng Tan

TITLE
VP & Executive Director
COMPENSATION
$81K
AGE
50
TENURE
5.3 yrs

Yu Yan

TITLE
General Manager of Global Sales Division
AGE
43
TENURE
4.9 yrs

Patrizio Fumagalli

TITLE
Chief Strategic Officer
AGE
45
TENURE
2.4 yrs

Hui Wang

TITLE
Head of Capital Market
AGE
36

Wei Zhao

TITLE
Joint Company Secretary
AGE
49
TENURE
2.1 yrs

Yee Man Choy

TITLE
Joint Company Secretary
AGE
50
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Bestway Global Holding board of directors in years:

1.9
Average Tenure
50
Average Age
  • The average tenure for the Bestway Global Holding board of directors is less than 3 years, this suggests a new board.
Board of Directors

Qiang Zhu

TITLE
Chairman & CEO
COMPENSATION
$254K
AGE
50

Kaifeng Duan

TITLE
CFO & Executive Director
COMPENSATION
$68K
AGE
44
TENURE
2.1 yrs

Feng Liu

TITLE
Executive VP
COMPENSATION
$73K
AGE
48
TENURE
7 yrs

Guozheng Tan

TITLE
VP & Executive Director
COMPENSATION
$81K
AGE
50
TENURE
5.3 yrs

Guoqiang Dai

TITLE
Independent Non-Executive Director
COMPENSATION
$31K
AGE
66
TENURE
1.7 yrs

Yiu Kin Lam

TITLE
Independent Non-Executive Director
COMPENSATION
$30K
AGE
63
TENURE
1.7 yrs

Zhixian Yao

TITLE
Independent Non-Executive Director
COMPENSATION
$31K
AGE
68
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Bestway Global Holding individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. Apr 19 Buy Qiang Zhu Individual 02. Apr 19 02. Apr 19 156,000 HK$3.40 HK$530,401
08. Apr 19 Buy Qiang Zhu Individual 03. Apr 19 03. Apr 19 135,000 HK$3.39 HK$457,650
08. Apr 19 Buy Qiang Zhu Individual 04. Apr 19 04. Apr 19 67,000 HK$3.39 HK$227,130
01. Apr 19 Buy Qiang Zhu Individual 29. Mar 19 29. Mar 19 241,500 HK$3.31 HK$799,365
01. Apr 19 Buy Qiang Zhu Individual 01. Apr 19 01. Apr 19 249,000 HK$3.43 HK$854,070
16. Jul 18 Buy Qiang Zhu Individual 13. Jul 18 13. Jul 18 112,500 HK$4.25 HK$478,125
12. Jul 18 Buy Qiang Zhu Individual 12. Jul 18 12. Jul 18 58,500 HK$4.30 HK$251,550
12. Jul 18 Buy Qiang Zhu Individual 11. Jul 18 11. Jul 18 133,000 HK$4.23 HK$562,590
06. Jul 18 Buy Qiang Zhu Individual 06. Jul 18 06. Jul 18 175,000 HK$4.41 HK$771,750
09. Jul 18 Buy Qiang Zhu Individual 09. Jul 18 09. Jul 18 313,500 HK$4.48 HK$1,404,479
05. Jul 18 Buy Qiang Zhu Individual 05. Jul 18 05. Jul 18 225,000 HK$4.38 HK$985,499
X
Management checks
We assess Bestway Global Holding's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bestway Global Holding has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3358 News

Simply Wall St News

Is Bestway Global Holding Inc. (HKG:3358) Trading At A 21% Discount?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $85.00 $90.00 $68.00 $55.14 $48.18 $44.21 $41.92 $40.66 $40.04 $39.86 Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ -18.91% Est @ -12.63% Est @ -8.24% Est @ -5.17% Est @ -3.02% Est @ -1.51% Est @ -0.46% Present Value ($, Millions) Discounted @ 9.15% $77.88 $75.55 $52.30 $38.86 $31.10 $26.15 $22.72 $20.19 $18.22 $16.61 Present Value of 10-year Cash Flow (PVCF)= $379.58m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$40m × (1 + 2%) ÷ (9.1% – 2%) = US$569m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$569m ÷ ( 1 + 9.1%)10 = $237.29m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $616.87m. … SEHK:3358 Intrinsic value, June 17th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Bestway Global Holding Inc.'s (HKG:3358) P/E Ratio Really That Good?

Check out our latest analysis for Bestway Global Holding How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Bestway Global Holding: P/E of 11.16 = $0.45 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.041 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … How Does Bestway Global Holding's Debt Impact Its P/E Ratio?

Simply Wall St -

How Do Analysts See Bestway Global Holding Inc. (HKG:3358) Performing In The Year Ahead?

Looking at Bestway Global Holding Inc.'s (HKG:3358) earnings update in December 2018, analysts seem cautiously optimistic, as a 48% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 25%. … View our latest analysis for Bestway Global Holding What can we expect from Bestway Global Holding in the longer term? … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

Simply Wall St -

Could Bestway Global Holding Inc.'s (HKG:3358) Investor Composition Influence The Stock Price?

View our latest analysis for Bestway Global Holding SEHK:3358 Ownership Summary, May 14th 2019 What Does The Institutional Ownership Tell Us About Bestway Global Holding? … We can see that Bestway Global Holding does have institutional investors; and they hold 6.5% of the stock. … Insider Ownership Of Bestway Global Holding While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

How Financially Strong Is Bestway Global Holding Inc. (HKG:3358)?

(HKG:3358) is a small-cap stock with a market capitalization of HK$4.1b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes

Simply Wall St -

How Do Analysts See Bestway Global Holding Inc. (HKG:3358) Performing In The Next Couple Of Years?

The latest earnings release Bestway Global Holding Inc.'s (HKG:3358) announced in December 2018a

Simply Wall St -

Should You Take Comfort From Insider Transactions At Bestway Global Holding Inc. (HKG:3358)?

So shareholders might well want to know whether insiders have been buying or selling shares in Bestway Global Holding Inc. … That means that an insider was happy to buy shares at above the current price of HK$3.74. … As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price

Simply Wall St -

What Bestway Global Holding Inc.'s (HKG:3358) ROE Can Tell Us

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Bestway Global Holding Inc. … Over the last twelve months Bestway Global Holding has recorded a ROE of 11%. … See our latest analysis for Bestway Global Holding?

Simply Wall St -

Did You Manage To Avoid Bestway Global Holding's (HKG:3358) 16% Share Price Drop?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This change in EPS is remarkably close to the 16% decrease in the share price. … Instead, the change in the share price seems to reduction in earnings per share, alone.

Simply Wall St -

Is Bestway Global Holding Inc. (HKG:3358) A Great Dividend Stock?

Recently, Bestway Global Holding Inc. … Let's dig deeper into whether Bestway Global Holding should have a place in your portfolio. … View our latest analysis for Bestway Global Holding

Simply Wall St -

3358 Company Info

Description

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. It offers above-ground metal and inflatable ring pools, accessories for above-ground pools, and portable spas and accessories; recreation products, such as inflatable play centers, play pools, pool floats, ride-on pool floats, and ball pits; sporting goods, including rafting tubes and floating islands, inflatable stand-up paddle boards, leisure boats and accessories, water slides, swim gears and trainers, and snow tubes; and camping products, such as flocked airbeds, fabric airbeds, air furniture, and camping equipment and accessories. The company also produces and sells polymer films; and engages in the investment management, as well as trades in inflatable products. The company was founded in 1994 and is headquartered in Shanghai, the People’s Republic of China. Bestway Global Holding Inc. is a subsidiary of Great Success Enterprises Holdings Limited.

Details
Name: Bestway Global Holding Inc.
3358
Exchange: SEHK
Founded: 1994
HK$3,757,288,050
1,058,391,000
Website: http://www.bestwaycorp.com
Address: Bestway Global Holding Inc.
Bestway Center,
No. 3065 CaoAn Road,
Shanghai,
201812,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3358 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Nov 2017
Number of employees
Current staff
Staff numbers
12,767
Bestway Global Holding employees.
Industry
Leisure Products
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 12:57
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/04/01
Last earnings filing: 2019/04/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.