OSIM

OSIM: UOB Kay Hian upgrades to Buy from neutral with $2.35 TP. House note that New product uAngel seems like a hit in retail stores with unfulfilled orders lined up till July-August. OSIM reported 1Q13 net profit of $25m (+13% y/y) despite flat revenue growth on stronger margins. Revenues were stable at S$151m partly due to a delay in recognition of sales from its new product uAngel. The co generated strong EBITDA of $34m with EBITDA margins improving to 22.5% as compared to 21.3% in 1Q12, due to a better product mix and higher productivity. As at 31 Mar 13, OSIM had cash and cash equivalents and fixed income investments of S$252m. The group announced dividend of 1c per share. Technically, the stock has retraced from $2.05 currently. Overall the stock currently is still on the uptrend and it is preferred that prices stay above $1.87 for further upside towards $2.25.