BEST Inc.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China. The company offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services.

Key Highlights

• BEST announced its third-quarter result, wherein the group posted its total revenue of RMB 7,976.139 million, improved from RMB 6,812.139 million in pcp.
• The company reported a net loss from operations of RMB 565.887 million, as compared to RMB 654.844 million in pcp.
• Cash and cash equivalent declined to RMB 966.026 million in Q3FY21, as compared to RMB 1,383.317 million in Q4FY20.
• Current ratio stood at 0.60x in Q3FY21, as compared to the industry median of 1.46x, which indicates poor liquidity profile.
• Debt to Equity stood significantly higher at 40.84x in Q3FY21, as compared to the industry median of 0.60x, which is an indication of highly leveraged balance-sheet.

Technical Price Chart (as of December 31, 2021). Analysis by Kalkine

Conclusion: The stock of BEST corrected ~19% and ~49% respectively, in the last one month and three months, and closed below its 50-days and 100-days simple moving averages, indicting a bearish pattern. The above was primarily due to poor operating performance in Q3FY21. At the current price level, the stock is hovering near the lower band of its 52-weeks trading range of USD 2.87 and USD 0.78. Considering the aforesaid facts, we give an ‘Avoid’ rating on the stock of BEST at the last traded price of USD 0.85 on December 31, 2021.

*The reference data in this report has been partly sourced from REFINITIV.