A strong reason to Buy OSIM

I have been a strong advocate of OSIM because of its strong business fundamentals and undemanding valuation.
Furthermore, it has not been on the radar of many other investors yet, signalling a high chance for exceptional capital gains moving forward.


<---- At the left side is the annual report i got from buying the OSIM shares. (Just to show you I practise  what i preach :D)


But more importantly, below is an analyst report from Kim Eng which i wish to share with you:


OSIM International is renowned for its massage chairs, the core of its original business.  However, over the next decade, we see the company blazing the same path in lifestyle products as Francebased LVMH did for fashion in its initial years, amassing more than 60 brands through a series of M&A activities to become the luxury fashion powerhouse it is today. 


OSIM is in pole position to become the king of lifestyle brands in Asia, a crown still up for grabs. It is already the undisputed brand leader for massage chairs. As the master franchisee of GNC, it has pushed this health and nutrition brand into a dominant market position in Singapore and Malaysia, and is replicating this model in China through its own RichLife brand. 


New acquisition TWG Tea is poised to revolutionise the way Asians perceive tea drinking. Underlying this relentless pursuit of growth is an unrivalled know-how in Asian retail and a passion for brand building. Companies with true brand equity are able to command pricing power and sustainable margins. OSIM’s margins are comparable to any global retailer, including Hermes and LVMH.


While luxury brands are scrambling for a foothold in Asia, OSIM already has extensive retail experience in North Asia and a favourable exposure to this market, making it the envy of global competitors. Yet, it is trading at more than 40 per cent discount to them. 


Contrary to popular perception, OSIM has always been a business that generates very strong cash flow, thanks to its high-margin products and low working capital requirements. While there have net cash position today and paying out healthy dividends. We believe the likelihood of impending M&As has been a stock price overhang, given the negative experience with OSIM’s purchase of Brookstone. But we beg to differ. OSIM currently has a much stronger balance sheet and profit base to absorb new businesses, lowering execution risk substantially. It is the cheapest high-end brand-owner in the region, in our view.

Summary

In conclusion, you can just take a look at all the favourable points highlighted in blue and you will know why OSIM is poised to be growing successfully in the next few years at least. Thus, a strong business will definitely paves the way for an increase in the stock price when everyone sees how OSIM can be the next stock that everyone will chase.