FAIR VALUE -> S$2.05, currently trading at S$2.01
THESIS
My original target price for OSIM based on the comps as well as the potential EBITDA per store was S$1.80, updating that for recent earnings and comps, my updated price target is S$2.05. OSIM has surpassed that target and could potentially continue the trend however, there are two things that concern me:
Fair Value –> S$1.80, currently trading at S$1.4650
Thesis
OSIM is a high margin business that is producing lifestyle products targeted at the increasing upper-middle income demographic. OSIM is currently expanding existing store footprint, while deploying cash that was raised via a bond offering in other strategic investments and share buy-backs. As the current cash hoard is used the business will return to previous RoE levels, which at ~50% beats the competition.
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It’s been a while since I last posted and the only excuse I can give is that life got in the way. I recently started up at a new job which slightly curtailed my research efforts. However, I’ve managed to pull together a couple screens on the various countries that I want to look at and thought it worthwhile to share.
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