Osim

Osim: Maybank-KE maintaining its Buy Call but reducing TP slightly to $2.53. House had a first hand look at the eagerly awaited new chair, Uinfinity, which has just been soft-launched in HK. The chair will replace the existing uDivine, which has been the flagship for the past three years. Initial selling price was HK$46,800, almost 35% above the existing uDivine App. SG’s selling price would likely be in the $6,000+ range. Uinfinity will likely be softlaunched in SG and China over the next few weeks. According to our analyst James Koh, who tested the new chair, what struck him immediately was the much better massage mechanism, even compared to uDivine which was considered a revolutionary technology. The leg portion has also been given a significant upgrade, feeling similar to the grp’s leg massager uPhoria. However slightly underwhelmed by the similarity in design to the uAngel. House view is that this could result in less power drawing in customers at the shops, and OSIM would have to run an effective marketing campaign to counteract this. Osim will announce 2Q13 results on 30th July, expecting net profit growth of at least 18%, which is likely to be driven by a full quarter contributions from the sale of its uAngel and some spillover orders from 1Q13.