Friday, February 1, 2013

Osim

Osim: AmFraser Raises TP to $2.15. Note that OSIM delivered on a strong Q4, setting a consecutive 16th quarter of profit growth. Its earnings outperformance was driven by sustained brand positioning, marketing and innovation—creating demand for the healthy lifestyle found in their products. Having seen and experienced first-hand its new chair, uAngel, impressed with OSIM’s ability to innovate and believe that uAngel’s appeal and price point would strongly drive sales and earnings in 2013. We are convicted of OSIM’s growth ability and despite a share price run up, we believe its worth has yet to be realised. Maintain BUY with a raised FV of S$2.15. With more product visibility and given OSIM’s track record in driving consumer demand, house now convicted of OSIM’s ability to grow earnings, as it continues to focus on constant innovation and brand positioning. Roll forward valuation to an adjusted FY13F’s EPS of 13.43c, and value it at 16x, up from a previous 13.5x. Believe OSIM is worth $2.15, a potential upside of 19%, on top of a decent 3.3% yield for a growing company.

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