01 August 2014

Osim Latest Quarterly Report Highlight - July 2014



My Notes

With annualized diluted EPS 3.78 * 4 = 15.12 cents, the annualized PE is around 18X. Given that PEG is in between 1.0 - 2.0, I would not say that this counter is undervalued in short term. But we gotta do more homework to dig out more details such as the sustainable growth plan of the company to further enhance its leadership in healthcare products or the premium tea market.

I have been encouraged by the group performance since year 2009. The share performance has been phenomenon after the group re-adjust its strategy after the failure in U.S joint venture. I believe Osim still have the competitive advantages over its competitor in the niche market in Asia and Asean region.

With group's expansion plan on TWG tea, I believe this division could bring in more revenue and net profits to the group. Osim is definitely in my watch list as it is a cash cow company with growth potential.


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