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BEST Inc
BEST Inc (NASDAQ: BEST) is a supply chain entity that provides a New Retail platform to offer solutions related to supply chain management, merchandise sourcing, freight, and cross-border supply.
Investment Rationale – SPECULATIVE BUY at USD 1.36
Risk Assessments
Recent News
12 March 2021: BEST disposed of its assets worth RMB517 million to Sinolink Yongfu Asset Management for reinforcing its liquidity.
Financial Highlights for the quarterly period ended 31 March 2021 (as on 8 June 2021)
(Source: Company Website)
Share Price Chart
(Analysis done by Kalkine Group)
Conclusion
BEST has certainly shown a top-line growth and margin improvement during Q1 FY21. The Company has taken initiatives for Express division to improve the bottom-line with cost reduction. It is also exploring financing options to strengthen certain business units. In terms of guidance based on current market conditions, the Group expects to report FY21 revenue in the range of RMB34 billion and RMB36 billion. The stock made a 52 week High and Low of USD 5.23 and USD 1.11, respectively. On the technical chart, the next important support level is at USD 1.12.
Based on the top-line growth, strategic refocusing plan, oversold technical signal, margin improvements, bright long-term industry prospects, we have given a "SPECULATIVE BUY" stance on BEST Inc at the closing market price of USD 1.36 (as of 10 June 2021).
*The reference data in this report has been partly sourced from REFINITIV.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached or if the price closes below the support level (indicative stop-loss price).