OCBC Investment Research has started Osim (O23.SG) at Buy with $1.22 target, says Dow Jones.

OCBC says massage-chair maker set for increased growth in 2010 after returning to profitability last year. Expects improving economic conditions, Osim’s constant renewal of products to meet changing consumer needs to drive growth.

“We believe the company’s constant drive for product innovation, coupled with its promotional activities, competitive pricing and 30 years of corporate history, would enable it to uphold its profitability,” says OCBC.

The research house notes plans to expand in both first-, second-tier cities in China, having tied up with mall owners such as CapitaLand (C31.SG), Parkson Retail (3368.HK): “With such a relationship with renowned mall owners, we expect Osim to execute its expansion plans in China with relative ease.”

Shares +0.6% at $0.91.