Osim has broken out above the 2.50 critical resistance last week and surged higher. Uptrend still intact as long as it hold above 2.50 support now. Likely to consolidate from 2.50 to 2.60 for a while before finding more momentum upwards. Can accumulate above 2.50 and trade the 10 cent range or wait for break above 2.60. A break above 2.60 can pave the way to 2.80.
Stop loss at 2.46
OCBC – 28 JAN 2014
OSIM International: On a sustainable growth path
OSIM International Ltd (OSIM) reported a good set of 4Q13 results which saw revenue and PATMI increasing by 15.5% and 22.1% YoY to S$178.6m and S$27.6m, respectively. This was in line with our expectations. It also declared a final dividend of S$0.02/share, bringing total FY13 DPS to S$0.06. Notably, OSIM has now delivered 20 consecutive quarters of YoY PATMI growth since 1Q10. In our view, this growth has been underpinned by management’s strong execution capabilities amid its continuous product innovation drive and efforts to boost its brand profile and efficiency gains. We believe this warrants a re-rating in OSIM’s share price and hence assign a higher target peg of 18x (previously 16.5x) to our FY14F EPS forecast, which we revise upwards by 3.3%. This lifts our fair value estimate on OSIM from S$2.56 to S$2.90. Maintain BUY.
OSIM International Ltd (OSIM) reported a good set of 4Q13 results which saw revenue and PATMI increasing by 15.5% and 22.1% YoY to S$178.6m and S$27.6m, respectively. This was in line with our expectations. It also declared a final dividend of S$0.02/share, bringing total FY13 DPS to S$0.06. Notably, OSIM has now delivered 20 consecutive quarters of YoY PATMI growth since 1Q10. In our view, this growth has been underpinned by management’s strong execution capabilities amid its continuous product innovation drive and efforts to boost its brand profile and efficiency gains. We believe this warrants a re-rating in OSIM’s share price and hence assign a higher target peg of 18x (previously 16.5x) to our FY14F EPS forecast, which we revise upwards by 3.3%. This lifts our fair value estimate on OSIM from S$2.56 to S$2.90. Maintain BUY.
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