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 Analysis

Excellent balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

3358

-3.1%

HK Leisure

4.0%

HK Market


1 Year Return

-40.0%

3358

-40.5%

HK Leisure

-20.3%

HK Market

Return vs Industry: 3358 matched the Hong Kong Leisure industry which returned -40.6% over the past year.

Return vs Market: 3358 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

3358IndustryMarket
7 Day-5.7%-3.1%4.0%
30 Day-21.7%-15.0%-11.9%
90 Day-36.9%-25.8%-15.8%
1 Year-38.4%-40.0%-37.7%-40.5%-17.4%-20.3%
3 Yearn/a-47.1%-50.6%-3.2%-13.0%
5 Yearn/a-59.3%-61.2%-7.4%-22.3%

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?

6.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3358 (HK$1.98) is trading above our estimate of fair value (HK$1.06)

Significantly Below Fair Value: 3358 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3358 is poor value based on its PE Ratio (6x) compared to the Leisure industry average (5.7x).

PE vs Market: 3358 is good value based on its PE Ratio (6x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 3358 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 3358 is good value based on its PB Ratio (0.6x) compared to the HK Leisure industry average (0.7x).


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3358's forecast earnings growth (7.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 3358's earnings (7.2% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 3358's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3358's revenue (6.2% per year) is forecast to grow slower than the Hong Kong market (9.1% per year).

High Growth Revenue: 3358's revenue (6.2% 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 (10.4%).


Next Steps

Past Performance

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

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3358 has high quality earnings.

Growing Profit Margin: 3358's current net profit margins (4.8%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 3358's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: 3358's earnings growth over the past year (3.8%) is below its 5-year average (16.3% per year).

Earnings vs Industry: 3358 earnings growth over the past year (3.8%) exceeded the Leisure industry -1.7%.


Return on Equity

High ROE: 3358's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Bestway Global Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 3358's short term assets ($605.3M) exceed its short term liabilities ($408.5M).

Long Term Liabilities: 3358's short term assets ($605.3M) exceed its long term liabilities ($123.5M).


Debt to Equity History and Analysis

Debt Level: 3358's debt to equity ratio (57.8%) is considered high.

Reducing Debt: 3358's debt to equity ratio has reduced from 67.7% to 57.8% over the past 5 years.

Debt Coverage: 3358's debt is well covered by operating cash flow (38.7%).

Interest Coverage: 3358's interest payments on its debt are well covered by EBIT (5.8x 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 2.4x debt).


Next Steps

Dividend

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

3.29%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateMay 22 2020Dividend Pay DateJun 26 202035 days from Ex DividendBuy in the next 54 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 3358's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 3358's dividend (3.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 3358 has been paying a dividend for less than 10 years and during this time payments have been volatile.

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 low payout ratio (19.9%), 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 (25.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Qiang Zhu (51yo)

no data

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 ($USD155.74K) is below average for companies of similar size in the Hong Kong market ($USD300.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Qiang Zhu
Chairman & CEOno dataUS$155.74k0.18% $3.7m
Kaifeng Duan
CFO & Executive Director2.83yrsUS$68.05kno data
Feng Liu
Executive VP7.75yrsUS$73.45kno data
Guozheng Tan
VP & Executive Director6yrsUS$80.61kno data
Yu Yan
General Manager of Global Sales Division5.67yrsno datano data
Patrizio Fumagalli
Chief Strategic Officer3.17yrsno datano data
Hui Wang
Head of Capital Marketno datano datano data
Wei Zhao
Joint Company Secretary2.83yrsno datano data
Yee Man Choy
Joint Company Secretary2.83yrsno datano data

2.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 3358's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qiang Zhu
Chairman & CEOno dataUS$155.74k0.18% $3.7m
Kaifeng Duan
CFO & Executive Director2.83yrsUS$68.05kno data
Feng Liu
Executive VP7.75yrsUS$73.45kno data
Guozheng Tan
VP & Executive Director6yrsUS$80.61kno data
Guoqiang Dai
Independent Non-Executive Director2.42yrsUS$30.87kno data
Yiu Kin Lam
Independent Non-Executive Director2.42yrsUS$29.92kno data
Zhixian Yao
Independent Non-Executive Director2.42yrsUS$30.87kno data

2.6yrs

Average Tenure

51yo

Average Age

Experienced Board: 3358's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.096b
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:44
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.