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.

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

0.8%

SEHK:3358

0.8%

HK Leisure

2.5%

HK Market


1 Year Return

2.9%

SEHK:3358

-16.1%

HK Leisure

-3.9%

HK Market

3358 outperformed the Leisure industry which returned -16.1% over the past year.

3358 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

3358IndustryMarket
7 Day0.8%0.8%2.5%
30 Day3.4%-0.2%7.6%
90 Day0.3%-5.8%0.8%
1 Year5.6%2.9%-13.4%-16.1%-0.4%-3.9%
3 Yearn/a-34.7%-37.6%19.6%7.6%
5 Yearn/a-52.0%-54.4%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Bestway Global Holding is good value based on earnings compared to the HK Leisure industry average.

Bestway Global Holding is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Bestway Global Holding is good value based on expected growth next year.


Price Based on Value of Assets

Bestway Global Holding is overvalued based on assets compared to the HK Leisure industry average.


Next Steps

Future Growth

How is Bestway Global Holding expected 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 Estimates


Future Annual Growth Analysis

Bestway Global Holding's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

Bestway Global Holding's earnings are expected to grow significantly at over 20% yearly.

Bestway Global Holding's revenue growth is expected to exceed the Hong Kong market average.

Bestway Global Holding's earnings growth is expected to exceed the Hong Kong market average.

Bestway Global Holding's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Bestway Global Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

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 less than its 5-year average (7% vs 20.6%)

Bestway Global Holding's earnings growth has not exceeded the HK Leisure industry average in the past year (7% vs 7%).


Return on Equity

Bestway Global Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bestway Global Holding used its assets more efficiently than the HK Leisure industry average last year based on Return on Assets.


Return on Capital Employed

Bestway Global Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Bestway Global Holding's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Bestway Global Holding's level of debt (73.1%) 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.

Debt is not well covered by operating cash flow (9.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bestway Global Holding's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Bestway Global Holding's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

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

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


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?

2.3yrs

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

Qiang's remuneration is lower than average for companies of similar size in Hong Kong.

Qiang's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

49yo

Average Age

The tenure for the Bestway Global Holding management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

The average tenure for the Bestway Global Holding board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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


Management Team

  • Yee Man Choy (51yo)

    Joint Company Secretary

    • Tenure: 2.3yrs
  • Qiang Zhu (51yo)

    Chairman & CEO

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

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$73.45k
  • Guozheng Tan (51yo)

    VP & Executive Director

    • Tenure: 5.5yrs
    • Compensation: US$80.61k
  • Kaifeng Duan (45yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$68.05k
  • Wei Zhao (50yo)

    Joint Company Secretary

    • Tenure: 2.3yrs
  • Patrizio Fumagalli (46yo)

    Chief Strategic Officer

    • Tenure: 2.7yrs
  • Yu Yan (44yo)

    General Manager of Global Sales Division

    • Tenure: 5.2yrs
  • Hui Wang (37yo)

    Head of Capital Market

    • Tenure: 0yrs

Board Members

  • Guoqiang Dai (67yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: US$30.87k
  • Yiu Kin Lam (64yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: US$29.92k
  • Qiang Zhu (51yo)

    Chairman & CEO

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

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$73.45k
  • Guozheng Tan (51yo)

    VP & Executive Director

    • Tenure: 5.5yrs
    • Compensation: US$80.61k
  • Kaifeng Duan (45yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$68.05k
  • Zhixian Yao (69yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • 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$3.810b
  • 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 Analysis2019/09/15 13:04
End of Day Share Price2019/09/13 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.