OSIM International

[greengiraffe]

Osim sees 1Q profit after tax sink 53% to $14 million on absence of new products

By PC Lee / theedgemarkets.com | May 5, 2015 : 6:33 PM MYT
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SINGAPORE (May 5): Osim International, the retailer of luxury massage chairs, saw the halving of its 1Q profit after tax to $14 million from $29 million a year ago.

Correspondingly, earnings per share for the quarter came in at 14 cents.

Revenue fell 13% to $150 million while operating EBITDA fell 45% to $23 million.

“This has been a challenging quarter where retail sales across the core countries has been soft and there have been no new major Osim product launches,” said the group in its SGX filing.

Despite these challenges, Osim said its dominant branding has enabled it to maintain a stable gross margin and highly cash generative business.

Operating cash flow for 1Q came in at $18 million.

“With the upcoming planned new product launches we remain positive about the outlook for the remainder of the year,” said Osim.

Its directors have recommended an interim dividend of 1 cent per share.

Osim closed four cents lower at $1.93 today.

Back to the dark ages of penny stock status?

[thor666]

margins still way better than penny stocks. Unless the numbers are not real... Which is a possible risk for any investment.


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[testwrite]

i think massage chair is an important healthcare equipment, considering the increasing occurrence of back ache in modern living. And more important because it is robotic, it is an important productivity improvement devices. Overseas, more chiropractor are marketing massage chair, as they realize many of their clients switch to therapeutic massage chair. Unfortunately i have tried osim most top end chair, and it is not too comfortable or therapeutic , in the end I switch to another brand. I think osim have focused more on the looks then the therapeutic function of an massage chair. but i am not surprise once a while the result drops badly, there are alot of competition.

[Happymeowmeow]

I think OSIM has many red flags

1) outstanding lawsuit
2) net cash position but still sell bonds
3) lots of competition.. OTO, OGAWA

[Freenasi]

Looking at the downtrend of the revenue, its better to skip this for the time being. There are too many competitors and all priced much lower. And the empty outlets are worrying too.

[specuvestor]

Apple and Microsoft also use debt to buy back shares or issue dividends. "Capital management" (not capital allocation) are non operational lower quality shareholders' returns. However the difference is that nobody questions the cash they have.

If Osim didn't do the CB and proceed to share buybacks then at least we know the money in their coffers are "fungible" to SGD. Now we won't know.

Count me in as another doubter of the conundrum that is Osim

Anyone who has been following Osim long enough knows the conundrum of this company. It is not about the PnL because it is getting obvious it is unreliable.

[Happymeowmeow]

all the worms crawling out

[greentea]

Broker's Take: Osim downgraded from 'buy' to 'neutral' http://btd.sg/1GYAkIR

[BlueKelah]

long time no comment on this stock,

wah down 10% in one day, spoke too soon, some stocks on singapore market can also be quite exciting.

looks like stock is starting to unravel. This is typical of what happens to overvalued growth stocks when profits start to shrink and growth falters. Company is still making profits but speculative shareholders over-react and dump shares en-masse.

Muddy waters might come in and do a report soon to capitalise on this.

[corydorus]

long time no comment on this stock,

wah down 10% in one day, spoke too soon, some stocks on singapore market can also be quite exciting.

looks like stock is starting to unravel. This is typical of what happens to overvalued growth stocks when profits start to shrink and growth falters. Company is still making profits but speculative shareholders over-react and dump shares en-masse.

Muddy waters might come in and do a report soon to capitalise on this.

Some stocks got Big Brother behind who want to save face. Short and you die painfully. Some stocks are free for all. Choose your battle wisely.