Osim

[Aspellian]

But one thing I learnt recently is that if there is a good STORY to sell, market will reward that story handsomely!

I have to eat my words that Osim is expensive at $1.10. Once it broke out of highs, it just go higher... one good story after another...

- China revenue growth
- China retail play
- Brookstone saga behind - potential IPO listing (who can ever imagine this!)
- Now - Taiwan ADR listing
- Analysts tripping over to give upgraded price targets

Makaning humble pie now - a stock i have keep track for so long and buy/sell wrong timing.

[winston]

Not vested

OSIM INTERNATIONAL - Singapore massage chair maker Osim International said on Friday it has submitted an application for the offering and listing of 85 million Taiwan Depository Receipts, at a temporary indicative offer price of NT$20.80 each.

The estimated proceeds are S$76 million, the firm said in a statement.


Source: Reuters

[Aspellian]

Osim price dropped today prob because the TDR story abit overhyped and only S$76mln raised - kachang puteh sum. avg vol is 6mil shares - today's drop is of rather mute vol. chance to accumulate? maybe at 10D line?

not vested

[winston]

Not vested. So how does net profit doubled when revenenue +7% only ?

Osim doubles Q4 net profit By ANGELA TAN

Osim International Limited reported on Wednesday that its net profit for the fourth quarter ended December 31, 2010 doubled to S$16.93 million from S$8.13 million a year ago.

Revenue, however, slipped 6 per cent to S$132.62 million from S$140.91 million a year ago.

For the full year 2010, net profit nearly doubled to S$50 million, while revenue grew 7 per cent to S$509 million.

As at 31 December 2010, Osim's cash & cash equivalents totaled S$73 million. In addition, the group expects to raise an estimated S$76 million in April through Taiwan TDRs.

Source: Business Times

http://www.businesstimes.com.sg/sub/lat ... 46,00.html?

[winston]

Not vested

OSIM INTERNATIONAL - Singapore massage chair maker Osim International said on Tuesday its first quarter net profit surged 150 percent to S$20 million from a year earlier, helped by higher sales, better product mix and greater productivity.

Source: Reuters

[winston]

Not vested

UPDATE 1-Singapore's Osim raises S$120 mln in convertible bonds

* Convertible bonds will have 2.75 pct coupon
* Conversion premium at 25 pct over Tuesday closing price (Adds details)

SINGAPORE, June 8 (Reuters) - Singapore massage-chair maker Osim International said it raised S$120 million ($97.8 million) by issuing convertible bonds to fund future acquisitions and for working capital needs.

The convertible bonds, which will have a coupon of 2.75 percent, will be due in 2016 and have a conversion premium of 25 percent over its closing share price of S$1.62 as of June 7, Osim said in a statement on Wednesday.

The bonds will be convertible to ordinary shares at an initial conversion price of S$2.025 each.

HSBC , Credit Suisse and RBS were the joint lead managers for the deal, Osim said.


Source: Reuters

[Musicwhiz]

Not vested

UPDATE 1-Singapore's Osim raises S$120 mln in convertible bonds

* Convertible bonds will have 2.75 pct coupon
* Conversion premium at 25 pct over Tuesday closing price (Adds details)

SINGAPORE, June 8 (Reuters) - Singapore massage-chair maker Osim International said it raised S$120 million ($97.8 million) by issuing convertible bonds to fund future acquisitions and for working capital needs.

The convertible bonds, which will have a coupon of 2.75 percent, will be due in 2016 and have a conversion premium of 25 percent over its closing share price of S$1.62 as of June 7, Osim said in a statement on Wednesday.

The bonds will be convertible to ordinary shares at an initial conversion price of S$2.025 each.

HSBC , Credit Suisse and RBS were the joint lead managers for the deal, Osim said.


Source: Reuters

My impression of OSIM issuing CB is that they probably can't get enough cheap financing for whatever they plan to do (M&A or otherwise) and thus has to resort to this. 2.75% is cheap debt in this low interest rate environment but the potential dilution is very great assuming the share price exceeds the conversion price of $2.025, though this would mean an end to compulsory coupon payments. But if the business does badly and the share price goes down, OSIM is stuck with the debt as no one will choose to convert. This is the kind of souble-edged sword which killed many an S-Chip.

[winston]

Not vested

Massage chair maker Osim said its second-quarter net profit rose 58 percent to S$19 million from S$12 million a year earlier, helped by higher sales and better operating efficiency.


Source: Reuters

[kennynah]

wah...got pple buy their masachi chairs ah

[winston]

Not vested

OSIM (S$1.115/BUY/TP:S$1.84)

Recent sell-down over concerns on potential acquisition offers a buying opportunity. OSIM's stock price has fallen 28% over the course of three weeks over concerns over the Group's huge cash hoard which will be used for "potential acquisitions."

Investors fear another Brookstone episode which saw the Group engaged in a huge leveraged buyout which went wrong but management has reassured investors that no such incident would be repeated and any acquisition would be in the range of S$30-60m.

We like OSIM for its
1) Strong brands in each of its speciality businesses,
2) Strong distribution network and relationships with malls in China;
3) Huge net cash pile which stood at S$58.7m as at 30 Jun 2011 or S8cents/share.

Source: DMG