Osim International (O23.SG) off 2.9% at $1.67 in active trade, falling back after hitting $1.74 at the open, its highest level since late 2006, as despite its strong 4Q, FY results, investors are likely uneasy about pushing the price higher after the stock’s 215% surge since the start of 2010. 

Yesterday, the massage chair maker posted 4Q revenue at $132.6 million, off 5.9% on-year, up 13.6% on-quarter; net profit is at $16.9 million, up 108.3% on-year, 30.1% higher on-quarter. OCBC says the results beat its estimates, with the on-year revenue decline mainly due to the conversion of GNC Australia into franchised outlets. 

 

“There is strong growth momentum for Osim going forward. In view of the strong execution capabilities of the group’s expansion plans, rollout of new innovative products and better-than-expected financial performance, we raise our FY11F earnings estimate by 18.1%,” which increases its fair value estimate to $1.96 from $1.68. 

 

OCBC upgrades the stock to Buy from Hold.