Brokers' Take

GK Goh upbeat on Osim's $752m US Acquisition

GK GOH RESEARCH, April 19

GK GOH Research is bullish on OSIM International's shares after the healthy-lifestyle products maker said on April 15 that it is leading a consortium in a $752 million acquisition of US retail chain Brookstone.STYL not found OSIM will contribute $149 million through bank loans. In return, it will take a stake of about 51 per cent in Brookstone.

In its April 19 report, GK Goh said the US retail chain will provide OSIM with the distribution network it needs in the US, where the potential market for massage chairs is about 100 million households.

It also said the deal could boost OSIM's net profit by 18 per cent this year and 19 per cent next year. It maintained a 'buy' rating on the stock with a target price of $1.32.

Rating: BUY