Oasis Home Holding Berhad - More Than a Retailer
Fri, 31-Jul-2026 06:08 am
by Team Coverage • Apex Research

Counter

OHM (0357)

Target Price (RM)

0.610

Recommendation

Buy

  • A differentiated omnichannel platform. Oasis Home has evolved beyond a traditional retailer by combining creator-led commerce, its proprietary OBO platform and first-party customer ownership into a scalable, asset-light business model.

  • Multiple structural growth drivers remain underpenetrated. Expansion into the Malay consumer segment, pharmacy distribution (>1,000 identified outlets) and the FIFA World Cup 2026 partnership provide additional avenues for customer acquisition and long-term revenue growth.

  • We forecast a 32.4% CNP CAGR over FY25–FY28F, supported by improving operating leverage, a richer product mix and continued margin resilience.

  • Initiate BUY with TP of RM0.61 (46.2% upside), derived from a 16.3x P/E applied to blended FY27F/FY28F EPS of 3.8 sen.

 

Key Investment Highlights

Creator Ecosystem as a Scalable Growth Engine. Oasis Home's ~18,000-strong creator network, spanning short-form video, affiliate marketing and live commerce, provides a structurally lower-cost and more scalable customer acquisition platform than conventional advertising. Beyond supporting product sales, the creator ecosystem is also being monetised through AI-powered content creation courses, representing an illustrative revenue opportunity of approximately RM2.43m based on a 10% creator penetration rate.

 

Malay Consumer Market Remains a Substantial, Under-Penetrated Opportunity. Revenue from the Malay consumer segment reached RM6.4m (9.9% of Group revenue) in 9MFY26, already exceeding the full-year FY25 contribution of RM3.8m (5.3%). Based on an illustrative 1% penetration of Malaysia's ~18.0m Malay population, the Group could generate approximately RM36.0m in annual revenue, equivalent to nearly half of FY25 revenue.

 

Pharmacy Distribution Network Accelerates B2B Diversification. Approximately 726 pharmacy outlets are currently operational through Big Pharmacy & Caring, Independent Pharmacies and CTG subsidiaries. New partnerships with Watsons and Health Lane are expected to expand the identified distribution pipeline to more than 1,000 outlets, providing a B2B growth channel that is both complementary to, and structurally distinct from, the Group's core D2C business.

 

Valuation & Recommendation. We initiate coverage on Oasis Home with a BUY recommendation and a target price of RM0.61, derived from a 16.3x P/E multiple applied to our forecast blended FY27F/FY28F EPS of 3.8 sen, implying approximately 46.2% upside from the current share price of RM0.425. We believe this valuation is justified by: (i) forecast CNP CAGRs of 32.4%, over FY25–FY28F; (ii) a scalable, asset-light creator- and platform-led business model with ROE expected to improve from 15.6% in FY25 to 23.1% by FY28F; and (iii) multiple structural growth drivers, including the Malay consumer segment, pharmacy distribution and digital commerce, which remain at an early stage of monetisation.

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