Osim

Osim: +1.8% at $1.67, outperforming the broader market amid a positive reaction to the massage chair maker's strategic acquisition in China. Osim purchased a 19% stake in Hong Ming (China) for US$314k, raising its total effective stake in Hong Ming to 30%. Says Hong Ming is one of the R&D arms of associated company Daito-OSIM Healthcare and that the buy is accretive but not expected to have mat’l impact on EPS and NTA for FY10…

OCBC keeps its Hold rating and $1.68 fair value estimate intact, but notes the acquisition will further strengthen the partnership between the two companies. Views move positively as it is in sync with Osim's strategy to innovate new products, and develop its specialty retail outlets for personal care and sports-related products in China. Resistance likely at the multi-year high of $1.73 (Dec 9).