Osim

Osim: tells Channel News Asia that it is still bullish about China where it has some 270 stores. CEO and chairman Ron Sim, said: "We've seen growth in Singapore, Malaysia, Hong Kong, Taiwan. China has slowed down. But…, dropping down from 10% to 7% GDP, on a huge market of a trillion, is not a slowdown. I would deem it as more of a correction." Recall, Osim reported record sales and profit again in 2Q12, in its 14th consecutive quarter of yoy earnings growth. Revenue was up 12% yoy $155m, net profit jumped 20% yoy to a record $22.5m. The better performance was due mainly to an increase in sales and better margins. Osim said it is restructuring its business in China to build up the number of stores in key first-tier cities. Last year, Osim opened 30 stores, but also closed 30 stores, in effect cut ting down from 19 cities to seven cities, to focus on the key first tier cities. Mr Sim notes sales per store has come up for its 47 stores of RichLife in China. Osim trades at 13.1x P/E. There are 9 Buys and 1 Hold, with TP btwn $1.61 – 1.90.