DBS pick Asia’s best “Born & Bred”

We pick Asia’s best “Born & Bred” retail brands with promising growth potential. Asia holds more than 40% of the world’s population. Asia will continue to generate its own growth, driven by consumption. It is well-known that Asia is the brighter spot for consumer companies, on the back of rising affluence, disposable incomes, and urbanisation. Our selection criteria is stringent, consist of only companies with their own brands, growing presence and clear ambitions. For SGX-listed stocks, our top BUY is OSIM (BUY, TP: S$3.08). OSIM makes it to our list for its focus on brands, product innovation and ambition to be the leading wellness and lifestyle product brand in Asia. Also in our watch list is BreadTalk (Non Rated), for its robust topline growth profile and its continuous product innovation.

SIIC Environment Holdings announced that the Group has decided to list its wholly-owned subsidiary, Wuhan Kaidi Water Services (Target Company) for sale by way of open bidding on the Shanghai United Assets and Equity Exchange (SUAEE) at a minimum listed price of RMB7.88m. The Target Company is principally engaged in the business of Engineering, Procurement & Commissioning (EPC) of water purification and treatment systems and facilities and the proposed disposal is in line with the Group’s strategy to focus as an active investor and operator of environmental assets.

IEV Holdings intend to dispose of its entire shareholding interests of
19.18% in the capital of CNG Vietnam, listed on the Ho Chi Minh Stock Exchange. CNG Vietnam operates a CNG plant in Phu My Industrial Zone, supplying approximately 7,000 MMBTU (million British Thermal Unit) of CNG per day to more than 20 customers without pipeline access in South Vietnam. The net proceeds of about S$10.7m will be used mainly for the funding of the Group’s various projects in the petroleum and renewable energy sectors.

US retailer Brookstone, which was 55% owned by lifestyle products firm OSIM International, has officially gone bust, two months after it defaulted on an interest payment of its debt. There will be no further financial effects on OSIM, which had made a $77m write-off of Brookstone in 2009, according to an OSIM spokeswoman.