Osim

Osim: gains 3% to a new 52-wk high of $2.38, after company responds to investor enquiries regarding its TWG Tea valuation and Brookstone. i) TWG Tea - Mgt says there will be material gains following the increase in equity interest from 35% to 45% in Jul '13 and subsequently from 45% to 53.7% in Oct '13. The gains arise from the re-measurement of this existing investment to fair value as TWG has become a subsidiary and the recognition of negative goodwill . ii) Brookstone - Mgt will take a material charge by impairing the Brookstone senior preferred notes and recognising FX translation losses. iii) ONI Australia - Mgt will take a material charge by making provisions for and impairing current and non-current assets. On balance, the above events are expected to have a positive impact. Osim will release its results on 27 Jan '14, and mgt expects 4Q and FY13 to be positive and strong.