OSIM International | Hold
DBS Group Research, March 18
March 19 close: S$1.38
Target price: S$1.46
We raise our TP to S$1.46 based on its five-year historical average of 16 times FY16F PE (from 14 times previously), but continue to maintain our neutral stance on OSIM from a fundamental perspective. The share price should be supported by its founder, Ron Sim's announcement to privatise OSIM at S$1.32 per share.
We had previously upgraded the stock on Jan 29, 2016, post its Q415 results, citing deep value; and the counter rallied about 45 per cent thereafter, partly due to this development. At this juncture, the privatisation offer poses no fundamental changes to our earnings forecast but the offer...
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