Osim is synonymous with its massage chairs. Besides the massage chair business, it holds other retail brands as well such as GNC and TWG Tea. Interestingly, the major market and revenue contributor to Osim is North Asia, to be exact China.
Signs of trouble in China?
While the Chinese Government has painted a moderately strong outlook on China, Osim’s result is showing otherwise. 9M current FY results has reported an overall decline of 12% revenue and a 44.4% fall in profits. This shows how cyclical Osim’s products are and the exposure it has to the China market. While its share prices have fallen to S$1.36, the question now is: Is Osim an undervalued buy with its growth story seemingly over.
With the slowing Chinese market, Osim has reported the third consecutive double digit decline in sales. While the company is still generating positive cash flow with a strong ......