Osim

Osim: Maybank-KE maintains Buy and lifts TP to a ‘Highest in the Street’ at $2.60. House note that 2013 will turn out to be a milestone year, as house believe this will be the first time in OSIM’s history where they will launch major hits in two different ranges of massage chair and OSIM will garner new customers from an untapped segment. uAngel appears to be a major hit. Historically, the majority of OSIM’s massage chair sales have been derived from its flagship higher-end chair (currently uDivine). The uAngel was launched in 1Q2013. Based on channel checks and anecdotal evidence, believe this new lower-end model has been extremely well-received, especially from new buyers, due to its attractive price point and well-functioned massage despite a smaller size profile. With an improving product which has now surpassed Japanese peers technologically, mgt now believes OSIM may have potential for worldwide appeal. As a result, they have started thinking about expanding internationally independent of Brookstone. On a longer-term basis, this may become another exciting source of growth.