OSIM International

[thor666]

The investment in Trek 2000 International, is a strategy investment for OSIM? May be I don't know OSIM enough to know the synergy between them.

(not vested)

Anybody has any thoughts on this company, which claims to be the originator of the ubiquitous thumb drive. They are going big on their Flucards, winning a big contract from Rely/ Mattel. Flucards are SD cards with wifi functionality. They are used mainly in cameras but will be used by Mattel for their educational dolls, if my memory does not fail me. They are suppose to have a very strong R and D team and have 600 patents (registered and pending). Their other partnerships include Toshiba, Sanyo, Panasonic, Nikon, Imation, Verbatim, Lenovo, etc. They finally turned profitable again and are giving a dividend of $0.005, first in a long time. Could this be a turnaround company? Would appreciate opinions from any buddies!

Hi cityfarmer,

I believe osim is interested to develop wellness appliance with some form of flucard functionality.

If not, probably related to their smartband or patient monitoring inventions.
Only time will tell how their appliances work out in the market.

http://trek2000.com.sg/index.php?id_cms=...roller=cms

(Post only for discussion and not recommendation.)


Sent from my iPad using Tapatalk

[swang107]

Hello,

I am new to this forum, but not new to equity investing (professionally or personally). Osim is one company which i like.

Growth has slowed in recent quarters, sure. EPS for FY15 is expected to be flat YOY, hence the de-rating from high PE multiples of >20x since last year. But i would hold onto my shares for now. This is a company that;

1- Is net cash, of about SGD250 Mil or so out of its market cap of about SGD1 bn
2- +ve free cash flow
3- Gives a quarterly cash dividend and at an estimate 3.7% dividend yield.
4- Lowest PB multiple now at 2.8x for the past 5 years (2.8x to 7.5x or so)

Management is seeding for new growth engines, and they have been pretty honest about it (although penetration rate of massage chairs is low, but growth here have really moderated). Need to find another wing, but unfortunately, Trek is not it. I would really like to see them to show more conviction in TWG. It is underwhelming. Revenue growth for this segment still seems to be tied to store growth. In short, it is scaling up too slowly. Ron/Peter, if you are reading this, why not throw a few millions here to really push this TWG out? As of latest quarter only 44 outlets Asia-wide (starbucks has more than 100 in Singapore alone). This is just not enough to be impactful.

Osim always introduces themselves as a lifestyle company at IR events, unfortunately at the moment they are still a massage chair manufacturer. I keep my fingers crossed and hope they get back to growth mode again (and see multiple expansion to >20x PE as a growth stock again!)

[BlueKelah]

trek is a one hit wonder in the tech world. We are now moving towards cloud computing and most essential capable devices like mobile phone/watch/pads and even cameras now all have built in wifi feature for online syncing with online account to backup and direct posting to social media. Flucard will probably end up as a specialty niche product and not mainstream.

OSIM jialat liao...

[CityFarmer]

Hi cityfarmer,

I believe osim is interested to develop wellness appliance with some form of flucard functionality.

If not, probably related to their smartband or patient monitoring inventions.
Only time will tell how their appliances work out in the market.

http://trek2000.com.sg/index.php?id_cms=...roller=cms

(Post only for discussion and not recommendation.)


Sent from my iPad using Tapatalk

I always skeptical on a technology user to venture into technology supplier biz. For e.g. SingTel shouldn't involve in the next 5G technology. It is always an advantage, by picking the winner, rather than involving in the risky competition.

(sharing a view, not vested)

[CityFarmer]

OSIM biz is becoming softer over time...

(not vested)

OSIM’s 2Q earnings fall 24% to $22 mil as sales stay soft in core markets

SINGAPORE (July 23): OSIM International ( Financial Dashboard), the retailer of luxury massage chairs, saw 2Q earnings fall 24% to $22 million, or 3 cents per share, in 2Q15 from $30 million in 2Q14.

Sales in 2Q ended June fell 13% to $159 million while 2Q profit before tax fell 25% to $29 million.

OSIM says this has been another challenging quarter as retail sales across the core countries have been soft.

“Our dominant brand has enabled us to maintain a stable gross margin and cash generative business. We are continuing to invest for growth supported by a strong balance sheet,” says Osim in its filing.

But the group remains optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches, it adds.
...
http://www.theedgemarkets.com/sg/article...re-markets

[Ivan Lu]

Why are they highlighting the yoy drop in sales when there was a 6.4% qoq jump?

[corydorus]

Retail Business should be YoY comparison due to consumer cycles.

[Ivan Lu]

Retail Business should be YoY comparison due to consumer cycles.

But that understates the improvement in performance. Some numbers for perspective.

1Q-2Q 2014 sales grew 5.7%, diluted EPS however declined from 3.81 to 3.78 cents.

1Q-2Q 2015 sales grew a stronger 6.4%, diluted EPS leaped from 1.78 to 2.92 cents, a 64% improvement.

[BlueKelah]

OSIM’s net profit crashed 24% to $22.5m in Q2

Blame it on weak sales.

OSIM International reported that its net profit crashed 24% year-on-year to $22.5m in the second quarter, revenue fell 13% year-on-year to $159.5m.

The sharp decline was due to poor sales in its key markets of Singapore, Hong Kong, China and Taiwan.

“This has been another challenging quarter where retail sales across the core countries have been soft. We remain optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches,” OSIM said in a statement.

=====================================

looks like the fall in sales in those 4 mainly chinese asian countries shows that the consumers are tightening their belts and spending less and that the broader economy in these 4 countries are not doing so well now compared to last year.

[CityFarmer]

The Taiwan Food and Drug Administration new finding...

Taiwan food and drug agency finds excessive pesticide residues in TWG Tea product
02 Oct 2015 10:29
By Cai Haoxiang

TAIWAN'S Food and Drug Administration has found excessive levels of pesticide residues in TWG Tea's "Chamomile Green Tea" that was exported from India, the agency said in a Sept 29 notice found here.

The report is making the rounds in Hong Kong, where the luxury tea seller has a glitzy outlet at IFC Mall.

TWG Tea is owned by Singapore mainboard-listed OSIM International.

The Business Times is awaiting comment from TWG Tea and OSIM.
...
Source: Business Times Breaking News