October 24, 2012 / 3:35 AM / 5 years ago

STOCKS NEWS SINGAPORE-Osim rises on earnings, OCBC ups target price

Shares of Osim International Ltd rose as much as 2.7 percent to a 15-month high after it posted strong quarterly earnings and OCBC Investment Research raised its target price for the massage chair maker.

By 0325 GMT, Osim shares were up 1.7 percent at S$1.51. The shares have jumped 30.7 percent since the start of the year, compared with an 18 percent decline in the FTSE ST Consumer Goods Index. Nearly 3 million Osim shares were traded, 4.3 times their average daily volume over the last 5 sessions.

Osim said its third-quarter net profit surged 49 percent to S$20 million, making it the 15th straight quarter of growth in profitability.

OCBC raised its target price for Osim to S$1.87 from S$1.79 and kept its ‘buy’ rating, citing higher expected dividend payouts, supported by strong cashflow generation. The brokerage expects Osim’s 2012 dividend per share to be 4.5 Singapore cents to 5 Singapore cents.

“Osim’s growth would be underpinned by its strong product innovation, a focus on middle-to-high income consumers and continued efforts to improve its productivity per man and per store,” said OCBC.

1127 (0327 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com); Editing by Jijo Jacob


11:09 STOCKS NEWS SINGAPORE-CIMB raises Mapletree Industrial target price

CIMB Research raised its target price for Mapletree Industrial Trust, which owns factories and other industrial assets, to S$1.51 from S$1.31 and kept its ‘neutral’ rating, citing higher margins.

By 0253 GMT, units of Mapletree Industrial were flat at S$1.395, and have surged 30 percent since the start of the year, compared with the FTSE ST Real Estate Investment Trust’s 34 percent rise.

Mapletree Industrial said its distribution per unit for the second quarter was 2.29 Singapore cents, 11.7 percent higher than the year-ago period, due to contributions from acquisitions, higher rents and improving margins.

CIMB said the trust has stronger capital management, as it issued a S$45 million 10-year fixed rate note that lengthened average debt tenure to 3.2 years from 2.7 years, yet borrowing cost fell to 2.3 percent from 2.5 percent.

However, CIMB noted that its current price to book value of 1.4 times is among the highest in the sector, and has likely priced in growth potential.

1102 (0302 GMT)

Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com; Editing by Jijo Jacob

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