OCBC SecuritiesHomeSitemapContact Us
OCBC Investment Research
 
  Bookmark this page   Saturday, 01 Nov 2014
 
Today's Headlines
OSIM International: Painful quarter; challenges ahead

OSIM International Ltd (OSIM) announced a set of disappointing 3Q14 results which fell short of ours and the street’s expectations. Revenue grew 3.4% YoY to S$158.2m but PATMI tumbled 27.8% to S$16.4m. Management attributed this to the general market weakness, coupled with higher start-up expenses and legal costs from TWG-Tea’s expansion. Looking ahead, we expect cost pressures to persist in the near future and slash our FY14 and FY15 PATMI forecasts by 15.4% and 19.9%, respectively. We also cut our fair value from S$3.21 to S$1.90 after rolling forward our valuations to 14x FY15F EPS (previously 20x blended FY14/15F EPS). Although OSIM’s share price has plunged 18.0% since it reported its results, we believe the weak sentiment and lack of near-term catalysts may cap its upside potential. Hence, we downgrade OSIM to HOLD.

 
  Market Pulse
Market Pulse: UOB, OSIM, Starhill REIT, DBS (31 Oct 2014)
Market Pulse: Yoma, OCBC (30 Oct 2014)
Market Pulse: MGCCT, Yoma, OSIM (29 Oct 2014)
Market Pulse: Raffles Medical, CRCT, CDLHT, HPHT (28 Oct 2014)
Market Pulse: Libra, Cache, FCT, CRCT, MGCCT, RMG (27 Oct 2014)
Market Pulse: Ascendas REIT, CCT, Midas, FCT, Cache Logistics Trust (24 Oct 2014)
Market Pulse: SingTel, KepCorp, Suntec REIT, FCOT, KepLand, SGX, MLT, Soilbuild REIT (23 Oct 2014)
Market Pulse: Genting, MLT, FCOT (21 Oct 2014)
Market Pulse: CMT, First REIT, Tiger Airways, SIA, SembMarine (20 Oct 2014)
Market Pulse: M1, Tiger Air, Ascott Residence Trust (17 Oct 2014)
  Research
OSIM International: Painful quarter; challenges ahead
OSIM International Ltd (OSIM) announced a set of disappointing 3Q14 results which fell short of ours and the street’s expectations. Revenue grew 3 ...
Starhill Global REIT: Good performance, attractive valuations
Starhill Global REIT (SGREIT) reported a decent 5.0% YoY growth in its 3Q14 DPU and this was within our expectations. Its Singapore portfolio cont ...
UOB: 3Q exceeded expectations
UOB’s 3Q14 net earnings of S$866m came in higher than Bloomberg’s poll of S$736m. Better Fee and Other Incomes were partly mitigated by higher imp ...
Yoma Strategic Holdings: Star City sales at healthy clip
2QFY15 PATMI increased 222% YoY to S$10.8m, mostly due to S$8.1m of fair value gains recognized from completed units in Star City’s Building A5 r ...
Mapletree Greater China Commercial Trust: Delivering sturdy returns to unitholders
Mapletree Greater China Commercial Trust (MGCCT) reported its 2QFY15 results which exceeded its IPO forecast but were in-line with our expectation ...
Hutchison Port Holdings Trust: No surprises in 3Q14 numbers
HPHT reported 3Q14 PATMI of HK$490.7m (EPU: 5.63 HK-cents), which dipped 9.0% YoY mostly due to continued cost pressures and a higher effective ta ...
 
 Strategy
Singapore Market: Position for better 1H15
Despite yesterday’s correction for the STI, equities are still up for the year. We expect equities to remain in favor, despite higher interest rat ...
Healthcare Sector: Rich valuations may cap upside potential
SGX-listed healthcare companies which we track have largely reported improved financial performance during the recent 2QCY14 results season. Under ...
Telecom Sector: Pretty dull 2QCY14
For 2QCY14, it was a pretty muted quarter for the telcos, with all of them reporting results that were within our expectations. Nevertheless, we h ...
Oil and Gas: Neutral view, but positive over the longer term
In our earlier report, we highlighted that international oil companies are reining in their capex plans, though national oil companies are still k ...
Singapore Property: Further enhancement of Singapore’s outer regions
Over the last week, the authorities highlighted their various plans to transform the Jurong Lake District into a key regional center and also anno ...
Singapore Property: Deep value in West Orchard could be unlocked
With a dearth of upcoming projects in the Orchard retail space pipeline over 2015-17, we believe there could be a greater impetus for strategic re ...
Home | Research | Market Pulse | Technical Analysis | Strategy | IPOs & Warrants | Sector | About Us
© Copyright 2007 - OCBC Investment Research.| All Rights Reserved | Co.Reg.no.:198301152E