DMG & Partners Securities in an Oct 21 research report says: "OSIM reported 3QFY10 profit after tax and minority interest (PATMI) of $13.0 million (+85.5% y-o-y, +7.6% q-o-q) on the back of $116.7 million in revenue (-4.8% y-o-y, - 10.7% q-o-q).
"PATMI margins have improved to 11.1% (2Q: 9.2%) due to higher margins from a better product mix and improved profitability from its franchised GNC Australia outlets. All 35 GNC Australia outlets have been converted into franchises, which has led to an increase in sales per outlet by ~20-30%. 9MFY10 PATMI stands at $33.1 million, accounting for 81.5% of our full year forecast.
"We raise our FY2010-FY2012 earnings estimates by 20-24% respectively. Based on 17x FY11F earnings, we raise our target price to $1.57 from $1.32. MAINTAIN BUY."