OSIM International

Seems OSIM is still going strong, after a major re-branding exercise which has seen it change its logo and slogan; as well as rearranging items within its retail outlets in line with its new focus.

This was one 16-bagger which almost everyone I knew (including myself) missed. At 6 cents per share back during the financial crisis, Ron Sim and several senior executives scooped up mountain-loads of shares, amid fears that the Company might sink into bankruptcy as it was then desperately calling for a rights issue.

Fast forward to today, the share is trading around $1.00-$1.02 and all seems well, with Brookstone having been written off in the books in FY 2009. But does it offer compelling value now? That is a question we must ask now, and not let hindsight guide our decisions.

Business Times - 25 Sep 2010

OSIM celebrates 30 years, sets acquisition course for growth

HEALTHY lifestyle company OSIM will acquire global and promising brands to maximise growth in China, as it focuses on the market there for its next phase of expansion.

Announcing a brand makeover yesterday to mark its 30th year in business, the company said: 'While OSIM continues to develop its business globally, China will be its focus for the next lap. It will also strengthen its franchise network, which presently spans over 25 cities.'

OSIM aims to remake itself through a younger, fresher image and making its customers' buying experience more enjoyable.

With a new mission statement - Inspiring Well-Being - it intends to reposition itself by inspiring people to take control of their own well-being and working towards feeling great and looking good.

'The universal appeal of the new OSIM brand identity will help bring it into new markets, bridging different cultures with a common desire for health and well-being,' the company said.

Customers will enjoy more personalised features at OSIM shops, with experiential corners such as the Trial Pod that allows them to try products in an 'intelligent' setting, such as uKimono Mini, uMist, uDolly, uVision, uCrown 2 and uPampie.

New VIP massage chair rooms will allow customers to enjoy a massage in an OSIM chair in total privacy and luxury, the company said.

OSIM will now offer products in distinct categories: relax and relieve; tone and shape; check and measure; and clean and purify.

The new store layout will allow customers to better use products in the same category and navigate more easily in-store for a better shopping experience.

'We have gained greater market share and strengthened our leadership status, and today we celebrate our 30th year with greater resilience and vigour,' OSIM founder and chief executive officer Ron Sim said yesterday.

OSIM worked with international brand consultant Interbrand to conduct a regional study to better understand consumers' changing needs, how the OSIM brand drives demand and how it creates value.

Research was carried out across key markets, with consumer insights instrumental in repositioning OSIM.

The company said that with a better understanding of its customers' needs, it will improve specialty retail management and tailor product offerings to different consumers.

I remember reading about Osim and its valuation in Curtis Montgomery's book. Can't remember the title though.

Sun Tzu on Investing ?

No not that. It's another one. But the book u mentioned is good too.

(12-11-2010, 02:49 PM)taka666 Wrote: I remember reading about Osim and its valuation in Curtis Montgomery's book. Can't remember the title though.

Building The Perfect Portfolio? Wallstraits sent me a free copy of that when I joined their contest some time back. I also have his (Curtis') personal autograph in the book.

Remember when OSIM was at 6 cents? Now close to a 30-bagger!

Business Times - 09 Dec 2010

Eyes will be on OSIM's TDR listing

By WONG WEI KONG

WHEN a high profile home-grown company like OSIM International announces that it is planning to issue Taiwan Depository Receipts (TDRs), it does catch the eye.

By now, the announcement of TDR listing plans by companies on the Singapore Exchange (SGX) almost seem routine. TDRs are certificates traded in Taipei and issued by companies that are listed on another bourse, with investors who buy the TDRs owning the shares and receiving any dividends paid out by the firms.

And over the course of the year, TDRs have become increasingly popular due to higher valuations in Taiwan, where many companies price TDRs at a premium to their existing shares. A trade deal with China that will deepen economic ties, along with a deep local pool of cash-rich institutions and individuals, also combine to make Taiwan an attractive market for primary, secondary and TDR listings.

So at least 10 companies listed on the Singapore Exchange have issued, or announced plans to issue TDRs on the Taiwanese exchange. Until OSIM came along, the biggest name to have done so was probably Chinese shipbuilder Yangzijiang, whose TDRs recently made a strong debut in Taiwan.

Companies with plans for TDRs are often foreign firms listed on the SGX, and usually with Greater China exposure. They do so for a variety of reasons, but among these is usually the quest for better valuations and the perception that they are undervalued in Singapore because of their foreign roots, as well as being under-researched.

But surely, a company like OSIM should not fall into that category. It is home-grown, and led by a man often held up as an example of local entrepreneurship. OSIM gave several reasons for its TDR move. It said its plan to list TDRs on the Taiwan Stock Exchange will give it a chance to tap a broader and more diversified shareholder base while providing the company and its subsidiaries with an additional fund-raising platform.

The healthy lifestyle products group also said it believed the proposed TDR issue would enhance its competitive position and benefit its overall business development. And it is hoping the move will strengthen public awareness of its brand name in Taiwan, a key market for OSIM products since 1987.

No mention was made of the improved valuations that could result from the move - but that statement was made for the company by the market reaction to the news. Before OSIM made the announcement last Wednesday, its stock price was $1.47. A week after, OSIM shares closed yesterday at $1.70, a gain of 15 per cent. There were no other material developments, apart from the TDR announcement, over the one-week period. Just to provide some context, DMG Research upgraded OSIM's target price from $1.57 to $1.66 after the TDR announcement, a level which the stock breached comfortably on Tuesday.

Clearly, the market attached a valuation premium to OSIM's TDR plans - which arguably implies that the company is currently undervalued in its home market.

And if OSIM itself feels this way, it wouldn't come as a surprise too. OSIM founder and chief executive Ron Sim has previously expressed frustration with how the local market and analysts have undervalued what the company was trying to do to achieve long-term growth, particularly when things weren't going well.

There is a history to this. OSIM was a market darling in its early phase of explosive growth. Then a troubled spell began with its acquisition of US retailer Brookstone in 2005. Brookstone's less-than-sparkling performance and accounting for the acquisition ate away at OSIM's earnings. Before long, a company so used to reporting 30 per cent earnings growth, was reporting losses. And analysts stopped covering the stock.

The result was a gap in research coverage of perhaps three to four years, at a time when the company was striving to work through its issues, until OSIM's earnings finally recovered following a $77.31 million write-off on its investment in Brookstone.

Research coverage then returned, but it is still not on the same level as in the early days.

If a high-profile home-grown company like OSIM indeed feels undervalued here, it is surely something for the market to think about. Poor valuations, or the perception of such, has been a bugbear for the SGX. If OSIM's TDR listing comes to fruition, many listed companies here will be watching the flotation with more than just casual interest.

OSIM requested for trading halt today.

Any insider news on the reasons?

(15-04-2011, 04:43 PM)nutty Wrote: OSIM requested for trading halt today.

Any insider news on the reasons?

M&A. See SGXNet for announcement.

OSIM Acquires 35% Equity Stake in TWG Tea
and 60% Stake in Joint Venture Holding Company OSIM-TWG (North Asia)


Interesting. They are going into ATAS tea business as well.

(15-04-2011, 06:29 PM)nutty Wrote: OSIM Acquires 35% Equity Stake in TWG Tea
and 60% Stake in Joint Venture Holding Company OSIM-TWG (North Asia)


Interesting. They are going into ATAS tea business as well.

If i don't remember wrongly, TWG Tea comes under the umbrella of one of the high-end luxury fashion houses? Must be a real coup for Osim then. Am thinking out the implications of this action...