Singapore Stock Market News

OSIM International - In Need of Blockbusters

StockFanatic
Publish date: Tue, 03 Nov 2015, 05:19 PM
StockFanatic
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Negative on the stock
We are negative on OSIM as we believe sluggish consumer sentiment and weaker regional GDP growth environment will dampen end demand. The 3Q15 results pointed to inventory build-up, falling sales per store, and rationalisation of store count. Thus, we are now more cautious of growth prospects going forward. We have cut FY15-17F earnings by 24-29%, and earnings growth is now muted at 3- 4%, which has led to a lower TP of S$1.22 based on 14x FY16F PE.
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