Yahoo Finance 
Investor CentralOSIM International Ltd - Did it help TWG Tea pay S$3.2 mln in damages to Tsit Wing International?
6/12/2013 – Brokers continue to be bullish on OSIM International, thanks to signs of faster growth in China.
OSIM continues to show strong top-line performance, with Q3 marking the 19th consecutive quarter of YoY profit growth.
Maybank Research reiterated its BUY call with a higher target price of S$2.78.
DMG OSK Research also maintained its BUY call with a higher target price of S$2.60.
It says it's excited about the year-end shopping season after checking the company's intermediaries for the movement of products.
The broker believes OSIM's revenue will grow 15% in FY14 and FY15.
The company announced these earnings for Q3 FY13 on October 31:
Revenue: +7% to S$153 mln
Profit: +16% to S$23 mln
Cash flow from operations: S$15.9 mln vs S$15.6 mln
Dividend: 1 cent per share vs 1 cent per share
The increase in sales was driven by higher consumer demand for its products.
Profit grew largely due increase in share of profits of associated companies, mainly from TWG Tea, and a lower effective tax rate.
But it's TWG Tea which deserves closer scrutiny.
Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies which global investors need answers to.
1. How is TWG Tea's business really doing?
OSIM bought a 35% stake in TWG Tea for S$31.4 mln in 2011.
It then increased its stake from 35% to 45% in July for just S$2.
This was because the founding members of TWG Tea had failed to meet the agreed performance target for the year ended March 31, 2013.
In October, it again increased its stake from 45% to a controlling stake of 53.7% for US$7.2 mln, and this is expected to contribute to earnings this year.
The various purchase prices have us confused.
So it bought a 10% stake in July for just S$2 because the business didn't meet performance benchmarks, yet just three months later paid US$7.2 mln for an 8.7% stake.
2. How much will the extra 8.7% stake contribute to the bottom line?
3. Will it buy out TWG Tea?
4. What is the current effective shareholding for TWG Tea (North Asia) Pte Ltd?
In FY12 annual report, OSIM's effective shareholding in its subsidiary OSIM-TWG Tea (North Asia) Pte Ltd stood at 74%.
5. Is the dispute over its logo resolved?
(Total number of questions in the full story: 19)
While our purpose is to ask the questions which the man on the street would ask, and to help the everyday investor make informed investments, please note that:
Our articles and presentations ('our contents') are not investment advice nor should they be construed as investment advice or any recommendation of any kind; nor meant to cast allegations or insinuations of any kind against any individuals or entities. Before acting on the material in our contents, you should either seek independent advice tailored to your particular circumstances and intentions or rely on your own judgement.
Our articles and presentations express our observations, opinions and theoretical analysis based on the facts that we have gathered or have been provided to us. While we endeavour to ensure that our contents are accurate and are presented in good faith, we cannot and do not warrant the accuracy, adequacy or completeness of the material or that the material is suitable for its intended use; and we disclaim any such warranties express or implied that may be presumed by any party; neither do we take responsibility for the views of companies or other stakeholders or observers or sources quoted or hyperlinked in our contents. While every precaution has been taken in the preparation of our contents, we (and our principals) shall not be liable for any losses or damage or inconveniences due allegedly to errors or omissions in any facts or due allegedly to reliance on our contents in any way whatsoever; nor for any damage to any computer hardware, date information or materials allegedly caused by our contents.
All expressions of opinion and observations in our contents are subject to change without notice and we do not undertake a duty to update and supplement our contents or the information contained herein in the event we obtain any further or more complete information.
©2013 Investor Central® - a service of Hong Bao Media
