Shares of Osim International rose as much as 2.7% to a 15-month high after it posted strong quarterly earnings and OCBC Investment Research raised its target price for the massage chair maker.
By 11:25 a.m., Osim shares were up 1.7% at $1.51. The shares have jumped 30.7% since the start of the year, compared with an 18% decline in the FTSE ST Consumer Goods Index. Nearly 3 million Osim shares were traded, 4.3 times their average daily volume over the last 5 sessions.
Osim said its third-quarter net profit surged 49% to $20 million, making it the 15th straight quarter of growth in profitability.
OCBC raised its target price for Osim to $1.87 from $1.79 and kept its ‘buy’ rating, citing higher expected dividend payouts, supported by strong cashflow generation. The brokerage expects Osim’s 2012 dividend per share to be 4.5 cents to 5 cents.
“Osim’s growth would be underpinned by its strong product innovation, a focus on middle-to-high income consumers and continued efforts to improve its productivity per man and per store,” said OCBC.
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