OSIM: OCBC maintains Hold with $1.35 TP. Note that macro risks the main concern. Believe that further downside risks have emerged for OSIM International since last update on 8 Feb12. This stems from increasing signs of easing growth in OSIM’s key addressable markets, including China, Malaysia and Taiwan.
In house opinion, lower economic growth could manifest into softer demand for OSIM's high-end products, which are largely discretionary in nature. To mitigate this, mgt would continue its innovation drive to introduce novel products with fresh concepts and better functionality, while focusing on improving its productivity per store and man. Maintain HOLD rating and given limited upside potential.
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