Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD
Research House: DMG
DMG & Partners Securities in an Apr 18 research report says: "OSIM has acquired a 35% stake in luxury tea brand TWG Tea for $31.36 million, valuing the company at $90 million. OSIM will hold a 60% in OSIM-TWG (North Asia) which will cover four countries - Taiwan, China, Hong Kong and South Korea.
"Save for the latter, OSIM has a long operating history in the other three regions (18-25 years). The first TWG outlet in HK will open at upmarket IFC mall in 3Q11, while first outlet in China is slated for next year (but might be brought forward).
"Osim's management expects TWG to be "profitable or breakeven" for FY11 (FYE Mar). Barring further details, we have not input any earnings contribution from the acquisition into our projections. Target price of $1.66, pegged to 18x FY11F earnings. MAINTAIN NEUTRAL."
Company Name: OSIM INTERNATIONAL LTD
Research House: DMG
DMG & Partners Securities in an Apr 18 research report says: "OSIM has acquired a 35% stake in luxury tea brand TWG Tea for $31.36 million, valuing the company at $90 million. OSIM will hold a 60% in OSIM-TWG (North Asia) which will cover four countries - Taiwan, China, Hong Kong and South Korea.
"Save for the latter, OSIM has a long operating history in the other three regions (18-25 years). The first TWG outlet in HK will open at upmarket IFC mall in 3Q11, while first outlet in China is slated for next year (but might be brought forward).
"Osim's management expects TWG to be "profitable or breakeven" for FY11 (FYE Mar). Barring further details, we have not input any earnings contribution from the acquisition into our projections. Target price of $1.66, pegged to 18x FY11F earnings. MAINTAIN NEUTRAL."
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