OSIM

OSIM: 1Q16 net profit tanked 42% y/y, making up only 13% of full-year consensus estimates, due to negative operating leverage.

-Sales fell 8% to $138.3m, dragged by South Asia ($58m, -8%) and rest of world ($4m, -56%), although North Asia ($76m, -2.5%) appears to have stabilised.
-Staff costs rose 5% to $33.1m, driving down EBITDA margin to 12.3% from 15.3% in 1Q15. TWG cost pressures were a key drag.
-Operating cashflow remained positive $11.3m (-40%), with net cash of 28¢/share. But its 1¢ quarterly DPS was culled.
-The street largely views the privatisation offer of $1.41 by founder and chairman Ron Sim as a good exit opportunity.

OSIM is currently trading at 18.5x forward consensus P/E.

Latest broker ratings:
CIMB downgrades to Reduce from Hold with TP of $1.00
Daiwa maintains Hold, raises TP to $1.39, from $1.32