Record quarterly profit of S$23mil in Q2 2012. Sales grew 12% yoy, whilst profit after tax grew faster at 20% yoy, improving OSIM's net profit margins to 14.6% from 13.8% in Q2 2011. Higher margins were attributable to higher productivity'greater sales per store and man.

OSIM is on track to meet our FY12F estimates'1H revenue and earnings met 49.4% and 53.4% of FY12F's targets. Sales growth was broad-based in nature,  across multiple products and geographic regions. Sales breakdown by geography was similar to that of a year ago, suggesting a growing reception of its range of products across Asia.

OSIM will reduce targeted net store additions in China from 50 to 30, preferring to be cautious with growth.  No. of OSIM outlets in China now stands at 267 against 272 at end of 2011. Reasons are'1) higher store rationalization in search of more suitable department store operators; and possibly 2) concerns over an economic hard landing in China. Nevertheless, management mentioned that sales per store in China grew, in line with OSIM's reported broad-based growth in sales across various geographies. Our projected sales estimates remain unchanged despite lower net store additions on higher sales per store growth.

Special dividend of 1c on top of 1c interim dividend. A total of 2c of dividend per share was declared for 2Q. This means a total of 3c dividend for 1H 2012. We raise our FY12 DPS estimates to 5c from 3.5c per share, implying a 4.2% yield based on last close.Maintain BUY, raise FV to S$1.66.  Rolling forward estimates by a quarter, we derive FV of S$1.66 based on 13.5x weight-blended FY12F and FY13F EPS of S$0.123. We like OSIM for its earnings resilience despite worries of an economic slowdown. OSIM presents a capital gains potential of 40% and a dividend yield of 4.2%. It is currently trading at only 9.6x forward PER. BUY.

CMA achieved a 40.7 per cent jump in net profit to $232.0 million for the second quarter ended June, from $164.9 million a year ago.Revenue for the quarter rose 18.7 per cent year-on-year to $74.6 million, mainly attributable to contributions from the three malls from Japan which were acquired in February, and higher revenue from management fees. Said Liew Mun Leong, chairman of CMA: "In view of our strong performance in the first half of this year, we are pleased to declare an interim dividend of 1.625 Singapore cents per share. This is 8.3 per cent higher than last year's interim

dividend of 1.5 Singapore cents."

Grocery store operator Dairy Farm International saw net profit gained 8 per cent in the first half of 2012 as its North-Asian businesses grew by almost a quarter.Profit attributable to shareholders rose to US$244.8 million, or 18.13 US cents per share, in the six months ended June 30, said the operator of Giant hypermarkets and 7-Eleven convenience stores in the region.

HPH Trust posted a 0.4 per cent increase in net profit for the second quarter ended June 30. Explaining its results, HPH Trust mentioned that while there were weaker-than-expected US and Europe container volumes, China and emerging markets continued to drive growth for its ports.It announced a distribution per unit (DPU) of 24.05 HK cents for the half year ended June 30.

THE executive chairman of Hup Soon Global Corporation plans to take the company private in a deal that values the industrial equipment and automotive products distributor at $36.4 million.Spei Holdings, owned by Hup Soon chairman and chief executive Timothy Chia Chee Ming and three others, is offering 10 cents a share for the 74.1 million shares it does not already control.

Boosted by a post-acquisition revenue jump, MTQ Corporation registered a net profit attributable to shareholders of $4.71 million for the first quarter ended June 30, 2012, up from $229,000 a year earlier. The mainboard-listed engineering specialist in the fabrication, repair and maintenance of oilfield equipment said yesterday that its Q1 turnover rose 57 per cent year-on-year to $38.44 million, due primarily to contributions from the Premier Group, which accounted for 30 per cent of MTQ's group revenue for the quarter.

Construction company Lian Beng Group posted a net profit rise of 8.1 per cent to $52.09 million for the full year ended May 31, 2012, from $48.18 million for the preceding financial year. The gain on sale of its investment property at New Industrial Road brought in $7.9 million to boost its profits. Earnings per share of the group rose to 9.83 cents from 9.10 cents, while net asset value climbed to 43.69 cents from 35.45 cents at the end of FY2011.

Source: The Business Times 

Source: AmFraser