gregorio lute: MIDCAP-Osim Int'l leads on earnings quality in S'pore consumer discretionary

Thursday, October 18, 2012

Osim International Ltd has emerged as the best

performer on earnings metrics among nine companies in

Singapore's consumer discretionary sector, tracked by at least

three analysts, data from Thomson Reuters StarMine shows.

The lifestyle products firm has an Earnings Quality (EQ)

score of 95, the highest in the sector, suggesting strong

earnings sustainability.

The free cash flow of the company has increased 23 percent

for the quarter ending June 2012 to S$27 million compared to the

same period last year.

The stock trades at a little over half its intrinsic value

of S$2.77.

The company also has a SmartHoldings (SH) score of 90,

suggesting potential increase in institutional ownership.

All seven analysts tracking the stock give it 'strong buy'

or 'buy' recommendations.

The stock is up nearly 28 percent so far this year, while

the sector has lost about 17 percent in the same

period, as of Wednesday's close. The stock hit a 52-week high on

Oct. 17 at S$1.50.

Fj Benjamin Holdings lags the sector with an EQ

score of 7.

CONTEXT:

For the June 2012 quarter the company's revenue rose 12

percent year on year to S$155 million and the net income

increased 20 percent to S$23 million.

A high score on StarMine's Earnings Quality model signals

strong earnings sustainability over the next 12 months based on

a company's past operating performance.

StarMine's Analyst Revision Model ranks stocks based on

analysts' revision of earnings and revenue estimates and changes

in their ratings and usually gives additional weight to analysts

who have been more accurate in the past.

(Reporting By Tripti Kalro; Editing by Sunil Nair)

gregorio lute