Osim

Osim: Good set of 2Q12 results which was in-line with expectations. Rev at $155m, +12% YOY and +3% qoq, while net profit at $22.3m, +20% yoy and +10.9% qoq, while EBITDA Margins gained slightly to 20.6% vs 19.6%. Grp has declared divs of 2c/share (1 interim & 1 special) Strong rev momentum was on back of a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements. uDivine, uPhoria, uPapa Music Sync, Taut, Zhi, Liver Protector and other key products continue to sell well. North Asia continues to make up the bulk of grp’s rev at 57%, South Asia at 38% and others at 5%. Going forward, grp aims to target an increase of 30 OSIM outlets this yr and with more new products being introduced, grp expect the core business to remain strong. Grp’s 199 GNC outlets are doing well and grp have rationalised the number of RichLife outlets to 52 by reducing from 19 cities to 8 cities for better focus, control and efficiency. We intend to open more outlets in these key cities. We note that grp’s fundamentals remains strong, with a net cash position of $54m.