OSIM

OSIM: OSIM records its 21st consecutive quarter of profit growth, as 1Q14 net profit rose 15% y/y to $28.8m, in tandem with the 15% growth in revenue to $173m. Revenue was driven by higher consumer demand for its products across all three main regions - North Asia (+4.6%), South Asia (28%) and others (+29%), and boosted by the maiden consolidation of TWG as a 70% subsidiary. Maybank-KE highlights that the performance was creditable, despite weak retail sentiments in the region and the lack of major new product launches. The house expects stronger earnings momentum from the second quarter onwards with the launch of uDiva (upgrade to the highly successful uAngel), underpinned by higher earnings contribution from TWG on the ramp up of store openings in China and Taiwan. Balance sheet remains robust, as net cash grew 37% to $155m, representing $0.212/share. In addition, OSIM declared interim dividend of 1¢/share. At $2.86, OSIM currently trades at an attractive 17.1x ex-cash forward P/E. Latest broker recommendations: Maybank-KE reiterate Buy with TP of $3.45