OSIM announced a set of good results for FY12. I am not vested in this counter but has been keeping a close watch on it. OSIM’s share price has rocketed since three years ago after management cut losses on its US investment losses. Since then, it has never looked back and the latest results showed that they have achieved their third consecutive years of record profit despite tough economic environment.
Record PBT S$115 million +17% , Q4 PBT of S$31 million +28%
Record PAT S$87 million +26% , Q4 PAT S$23million +32%
Record EBITDA S$126 million +13% , Q4 EBITDA S$34 million +20%
Final Dividend of 1 cent per share + Special Dividend of 1 cent per share
Cash & Cash Equivalents and Fixed Income Investments as at 31 December 2012 were S$235 million
Besides the above results, one aspect that I liked about OSIM is that it offers significant opportunities for growth. It has managed to re-invent itself and brand itself as “Asia’s Number 1 brand in well being and healthy lifestyle products”. This means that the OSIM has a lot of leg-room for future growth and business expansion. In fact, its venture into GNC health products and subsequent penetration into China market has helped to boost the company’s coffers.
In addition, just like any leading international technology companies (Apple), OSIM is able to cannabalize its own products and constantly create consumer demands through new product launches, like uDivine App, uAngel, uPhoria, uPixie, uCozy, uRelax, uPebble, uHug and uBio.The wide variety of products offered made it tough for its competitor to catch up with Osim.
In view of the above, I think OSIM has a lot of potential for upside. I am keeping a close watch on it.
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