New  digital  marketing  strategy.  In  conjunction  with  a  new  massage chair  in  early  2015,  we  expect  management  to  roll  out  a  new  digital marketing strategy. Given the increasing importance of online media/ecommerce,  we  welcome  this  evolution  from  OSIM's  previously successful  marketing  campaigns,  which  were  more  focused  on traditional media and celebrity endorsements. 

TWG  Tea  Co  loses  appeal  in  Hong  Kong.  In  Dec  2014,  subsidiary TWG  Tea  Co  lost  in  the  Hong  Kong  Court  of  Appeal  against  an  early ruling that its abbreviation infringed upon an existing logo. Management has  not  decided  whether  to  pursue  the  matter  further  at  the  Court  of Final  Appeal  or  change  the  logo  to  another  registered  trademark, TeaWG,  in  Hong  Kong.  Notwithstanding  this,  TWG  Tea  Co's  other expansion plans remain on track. 

Reducing  our  estimates,  but  Maintain  BUY.  We  reduce  our  FY14 estimates by 8% to account for a weaker 4Q and FY15F-16F by 12-15%. Our  TP  of  SGD2.30  (from  SGD2.75)  is  now  pegged  to  a  15x  ex-cash FY15F, in line with regional peers. The company still has a solid balance sheet, with net cash of SGD237m.

Source: OSK-DMG