Friday, April 14, 2006

OSIM

Information from OSIM international is taken from its Financial Highlights section in its annual report dated March 2005.
Current Quarterly Earnings:
Comparing the first quarter of 2003 and 2004, there is a 31% growth in turnover. This is the most growth of all quarters. The least growth was in the third quater, where, compared to 2003, 2004's growth was merely 3%.

Annual Earnings
In 2003, the EPS for the year was 5.4, while the EPS for 2004 year end was 7.1. The group's net profit increased by 32%.

New Heights
OSIM recently introduced I-Gallop, a product that mimicks the action of horseback riding, aimed at consumers who want lose weight and have fun at the same time. The other products recently launched include I-Zap and I-Squeeze. The group also plans to open more stores and chair spas across the globe.

Supply and Demand
The trading volume of the stock on 13 April 2006 is 321,000 with an average 3 month volume of 519,074.

Leader or Laggard
OSIM's main competitors are OTO, and several companies emerging into the Asian market.

Institutional Sponsorship
I am not sure about this point, can anyone provide information on this?

Market Direction
According to the annual report, the group's turnover is up 16% with global franchise markets and China leading the growth at 46% and 42% respectively. They target to achieve $1 billion in profit by 2008. Are they still on track to achieve this? (Only time will tell.)

I find that using CANSLIM to look at companies is actually quite straight forward. Most information can be found directly in annual reports, quarter reports and in the newspapers. It takes a bit of research in order to understand "N", new heights, management, products, services. This information can be found on their websites, although OSIM's corporate website doesn't seem to be updated. The C and A portions of CANSLIM are pretty obvious. If we want a winning company, we ought to have C and A to be outstanding. Just like when we want to buy an apple, we need to pick one which is not rotten and looks fresh. In essence, they mean the same thing. I do not really know how to look out for sponsorship for the company, perhaps I didn't read the annual report thoroughly enough. "L" is pretty simple for OSIM, and "M" is something that we need to determine ourselves. I find it subjective in discussing aout the market direction of OSIM. Mainly because I do not enough knowledge of the market. However, I personally feel that with Osim's expansion across the globe, its name will be more popular and this is make Osim an internationally recognised brand for spa chairs and other health products.

Osim is currently holding a fair at Takashimaya basement 2.



3 Comments:

At 2:22 AM, Blogger tradingdiary said...

The institutional support can often be found in the significant shareholder section of the annual reports. I will check and let you know.

 
At 2:50 AM, Blogger tradingdiary said...

Osim's local competitor is mainly OTO, but there are emerging competitor like Akira who is designing a product similar to Uzap. However, as Osim is targeting the international market, we should look at competitors like Panasonic and Vgo as well.

Found out from my company visit that Osim's current strategy is to increase Brookstone revenue. Such that at least for every quarter there is marginal profit instead of 3 quarters of lost and 1 quarter of gain.

The recent change of advertisement of Igallop is to "educate" the mass of the health benefit as the "impact" has already been made in the first advertisement. This is a reply made by the business analyst of Osim when I emailed him recently.

 
At 2:06 PM, Blogger tradingdiary said...

Found information on institutional interest in "Stastic of Shareholdings" section of the Annual Report of Osim.

If you are keen to get the information, please drop me an email.

 

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