OSIM price target cut to $2.72 from $3.50 by Maybank Kim Eng

Stock Name: OSIM Intl
Company Name: OSIM INTERNATIONAL LTD

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 2.72

SINGAPORE (Oct 29): Maybank Kim Eng has cut its price target on OSIM International from $3.50 to $2.72, based on 19 times projected FY2015 earnings, after lowering its FY2014-2015 earnings per share estimates by 18%.

"Essentially, we now expect no growth this year before a rebound next year," Maybank Kim Eng analyst Gregory Yap said in a note today.

While OSIM's 3Q2014 results were below expectations, due partly to start-up costs for TWG Tea, Yap said the tea label should generate economies of scale in 2H2015 as it expands.