Osim: IIFL reiterate Buy, TP $1.45, following FY11 results. Note that OSIM remains focused on the raising productivity per outlet and per man to improve profitability.
During 2011-14, expect the Grp to deliver 19% profit Cagr with a net margin expansion of 67bps to 13.6% in 2014. Expect OSIM to pursue inorganic growth opportunities in order to maintain 20% annual profit growth beyond 2013, which will be aided by a 4-fold increase in net cash position to S$230m in 2014. Like the stock for its double digit earnings growth, strong net cash
position and >30% RoE.
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