COMMENTS ON BIO OSMO BERHAD (7243)

BIO OSMO BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.
1.       GENERAL INTRO: This counter core business is on bottled water and beverages manufacturing, and hotels/resorts management.

2.       NOTABLE POINTS:
a.       bottled water business been incurring losses continuously, due to pressure to lower pricing and increasing productions costs, as well as limited by capacity constraint, hence has been disposed
b.      more focus onto hospitality business, 75% stake in Intra Magnum and 25% stake in Impiana hotel groups.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (million): ~ 9 million in 2017 annual report, this is a low revenue company.
b.      SHARE PRICE: share price is on decreasing trend in last few years, decreasing from around 20sen to 4sen now.
c.       EARNING PER SHARE (EPS): making losses in last five years, loss per share range from -5.48 to -1.39 sen
d.      FUTURE POTENTIAL: main stream of revenue will derive from hotel and resorts business
e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 3.3 million, around 7% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2017 report, no dividend payout declared
b.      CONSISTENCY: no dividend payout to shareholders in last five years

5.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around 2 million
b.      SUPPORT BY INSTITUTIONAL INVESTORS: at top 30 major shareholders list, only two institutional shareholders, which are investment funds.

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