Osim

Osim: OCBC maintains Buy with higher TP of $3.18 (from $2.90), given Osim’s strengthened balance sheet and investment merits. Expects the full conversion of Osim’s convertible bonds (CBs) to occur before 5 Jul ’14 (redemption call date), as Osim’s last closing share price of $2.90 is significantly above the conversion price of $1.87. This will propel Osim into a solid net cash position of ~$300m ($0.38 per share), and give the group the ammunition for future accretive M&A activities.