Osim

[iam802]

2Q08 results

http://info.sgx.com/webcorannc.nsf/ef3b ... enDocument

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Key points:
- OSIM Core Business : 2Q Better than 1Q ( 802: but revenue is lower than previous year same quarter)

- Healthy Growth of Global Active ( 802: GNC shops continue to be their cashcow)

- Brookstone : Closest Competitor Exits Business (802 : I am worried when competitor dies. Is there really a sustainable market for this business??)

[millionairemind]

802 - When I was living in the US and when I visit the malls, I like to do what Peter Lynch does, check out the busiest stores.... unfortunately, I have noticed that Brookstone is at the other end of the spectrum.. the least busy store

[helios]

>>> personal opinion: i met the CFO, the regional manager (and her team), i must say that the osim has a good culture in placed as the working environment for their staffs. i have also met Ron's elder brother, their family during their grandma's birthday - they r not atas but a close-knit family apparantly.


SINGAPORE Business Times - Healthcare product maker Osim posted a net loss of $6 million (US$4.4 million) for its second quarter to June 30, almost doubling its loss last year of $3.1 million.

Revenue fell 15 per cent to $115.9 million from $137.3 million. Loss per share was 1.11 cents, up from 0.58 cent loss a year ago.

The company said that despite the increasingly challenging market environment, it was 'cautiously optimistic' for its performance in 2008 and said it expects profit in the second half of the year to be better than that in the first half.

Access at: http://www.businesstimes.com.sg/sub/lat ... 81,00.html?

[la papillion]

Posted this on my blog today, then I saw there is a thread here too

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My take:

Still losing money but compared to 1Q08, they improved noticeably, with the EPS going from -2.4 cts in 1Q to -1.1 cts in 2Q. To be fair their operating profit margins improved quarter to quarter, from 2.2% in 1Q to 5.3% in 2Q - still too low for my comfort level. Hello, you are selling luxury products, if your margins so low, how to sustain it when the going gets tough? Too many competitors in the industry all taking a chunk of your profits? Don't bullshit me about population getting older so need more health massage chairs - when there is no money to eat, the last thing anyone will buy is a massage chair.

They also mentioned that for brookstone, their ill-fated investment in US, had their closest competitor exiting the business. Must be damn bad, that's my first thoughts. Overall revenue is marginally better, improving from SGD115.6 million in 1Q to SGD115.9 million in 2Q. Brush up your act, Osim, show us a good turnaround story that will get investor rooting for you!

[winston]

Not vested.

Osim International - Osim International, which makes massage chairs, said its net loss for the second quarter ended June 30 2008 was S$6 million ($4.4 million), down from a loss of S$13.2 million in the year-ago period.

Revenue remained flat at S$115.9 million.

[Blackjack]

Still seem like a failing business to me. Low profit margins, easily imitated, no exclusive X-factor in the product line...

Worse thing is you always see big numbers of sales staff at their various launch locations, with customers you can count with your fingers. I don't know how they are going to succeed in their branding this way. It just doesn't work for me.

[iam802]

Saw this on Asiaone

THREE brands selling hot, cold gel packs have voluntarily recalled their products after laboratory tests by the Health Sciences Authority (HSA) revealed that the products contained a toxic anti-freeze ingredient.

Ten types of hot, cold packs sold under the brands Surgipack, Soft R&R and Osim were found to contain ethelene glycol, HSA said in a statement on Monday.

The packs should have contained a non-toxic substance, propylene glycol, instead. About 2,000 peices of the affected products have been sold to consumers.

[iam802]

From Kim Eng:

Osim International reported yesterday that its third-quarter net losses havewidened to $6.99 million, or 1.29 cents per share, from $6.61 million, or 1.22 cents per share, in the same period last year.

The healthy-lifestyle products group also saw revenue for the three months ended Sept 30 fall 16.3 per cent to $114.74million from $137.11 million in the year-ago period. Quarter-on-quarter, revenue fell one per cent from $115.9 million in Q2, and net loss also widened from Q2's $6 million, or 1.1 cents per share.

For the first nine months, the group's revenues shrank 12.5 per cent from $395.73 million to $346.25 million but net loss narrowed from $27.04 million to $26.2 million. Operating profits narrowed year-on-year, from $10.1 million to $6.4 million, although this was an improvement of 3.2 per cent over Q2's $6.2 million, which OSIM attributed to better sales per store and sales per man. The group's share of losses from associated and joint venture firms inQ3, including financial expenses, came to $12.38 million, compared with the $14.76 million registered in Q3 last year.

OSIM reported healthy balance sheet financial ratios and improved gearing, saying that cash flow from operations and internal resources financed the investment in fixed assets and net repayment of bank loans

[financecaptain]

Wonder how is Company's gearing ? If I am not wrong, they used debt to make the US acquisition a couple of years ago. Any LBOs done on the last 3 years will face big problem now.

[millionairemind]

Osim's two-for-nine rights issue
By CHEW XIANG

OSIM International yesterday announced a two-for-nine rights issue at an issue price of 5.5 cents a share. It is issuing up to 120.4 million new rights shares to raise up to $6.6 million.

Ron Sim, chairman of the healthy lifestyle products maker, has undertaken to subscribe for his full entitlement of some 64.2 million rights shares, and will also subscribe for any excess rights shares, Osim said in a statement last night. Mr Sim owns 53.3 per cent of the company.

The rights issue is not underwritten, but the company said that Mr Sim's 'irrevocable undertaking' meant that it could save costs by going ahead without underwriting.

The money would be used for general working capital purposes and such other purposes as the directors may deem fit, Osim said. The rights issue is subject to Singapore Exchange in-principle approval for the listing of the shares.

For its third quarter to Sept 30, Osim said net losses widened to $6.99 million, or 1.29 cents per share, from $6.61 million, or 1.22 cents per share, in the same period last year. Sales fell 16.3 per cent to $114.74 million. It held cash and cash equivalents of $22.8 million, with net cash from operating activities of $7.17 million. It disclosed bank loans of $43.5 million, $20.5 million of which was then due within 12 months.

Osim last traded at 7.5 cents. No trades were recorded yesterday. The stock has fallen sharply and was trading as high as 51 cents this time last year.