OSIM

OSIM: CIMB initiates at ADD with TP $4.60. Osim is a brand company and a great proxy for the growing affluent consumer class in Asia. CIMB estimates Osim has three times the number of celebrity endorsements (latest being Andy Lau and Lee Min-Ho) than its closest peer, allowing Osim’s products to be priced at a premium over its peers . CIMB likes Osim for: i) Its high ROE and consistent free cash flow growth, ii) The way its dominant massage chair brand sustains earnings growth, and iii) Its new luxury tea brand, TWG