· Oasis Home's 4QFY26 core net profit surged to RM4.3m (+308.2% YoY, +26.3% QoQ), beating expectations and bringing FY26 core earnings to RM13.6m (+45.3% YoY), or 123% of our full-year forecast, driven by strong growth across both D2C and B2B channels.
· We remain positive on Oasis Home's growth outlook, underpinned by continued marketplace and B2B expansion, alongside additional growth opportunities from the Malay consumer segment, expanding pharmacy and retail distribution network, and early momentum from its Singapore JV.
· Raise our FY27F/FY28F/FY29F core net profit forecasts to RM16.8m/RM22.6m/RM33.4m, reflecting stronger assumptions for the third-party e-commerce & digital marketing and B2B segments following the robust 4QFY26 performance.
· Maintain our BUY call with a higher TP of RM0.64 (previous: RM0.61), based on an unchanged 16.3x target P/E applied to blended FY27F/FY28F core EPS of 3.9 sen.
Above expectations. Oasis Home's 4QFY26 core net profit, after adjusting for fair value loss on other investments (-RM0.104m), gain on lease modification (-RM0.009m), gain on disposal of PPE (-RM0.001m), inventories written off (+RM0.002m), inventory impairment (+RM0.023m), impairment of trade receivables (+RM0.016m), unrealised FX loss (+RM0.0010m) and PPE write-off (+RM0.080m), surged 308.2% YoY and 26.3% QoQ to RM4.3m. This brought FY26 core net profit to RM13.6m (+45.3% YoY), representing 123% of our full-year forecast. The strong performance was driven by robust revenue growth across both D2C and B2B channels.
QoQ. Revenue grew 38.0% QoQ to RM34.7m from RM25.1m in 3QFY26, while core net profit increased 26.3% to RM4.3m, driven by stronger sales across live commerce and third-party e-commerce marketplaces and digital marketing channels, supported by promotional activities and sales of official FIFA World Cup 2026 licensed merchandise.
YoY. Revenue jumped 70.5% to RM34.7m from RM20.3m in 4QFY25, while core net profit surged 308.2% YoY to RM4.3m from RM1.1m. Growth was driven by broad-based contributions across both D2C and B2B channels. Third-party e-commerce marketplaces and digital marketing more than doubled by 108.1% to RM10.6m, supported by the Group's expansion through Oasis CTG Alliance, while B2B revenue surged to RM3.6m from RM0.2m.
YTD. FY26 revenue increased 37.1% YoY to RM99.3m, driven by a 38.1% increase in D2C revenue to RM93.4m and a 417.8% surge in sales to corporate customers to RM5.9m. Core net profit grew 45.3% to RM13.6m, due to more favourable sales mix and improved purchase cost management, which more than offset higher selling and distribution expenses incurred to support the Group's marketplace and digital marketing expansion.
Outlook. We remain positive on Oasis Home's growth outlook, following its strong 4QFY26 performance, which demonstrated continued momentum across its core D2C business and growing contribution from B2B channels. While live commerce remains the Group's largest revenue contributor, the strong growth in third-party marketplaces, digital marketing and sales to corporate customers highlights its ongoing transition towards a more diversified omnichannel business model. Looking ahead, we expect growth to be supported by continued expansion across the Malay consumer segment and pharmacy distribution network, alongside the Group's increasing focus on differentiated wellness, skincare and lifestyle products. Beyond Malaysia, management indicated that its Singapore JV has generated positive returns since inception, with wellness products and AI Academy classes emerging as key growth areas. We believe these initiatives should further broaden the Group's customer reach and revenue base, while reducing its reliance on any single sales channel.
Malay market remains a sizeable growth opportunity. The Malay consumer segment has demonstrated encouraging traction, with its revenue contribution rising from 5.3% in FY25 to 9.9% in 9MFY26, while revenue of RM6.4m in 9MFY26 had already exceeded the RM3.8m recorded for the full FY25. We believe the Group remains at an early stage of penetrating this sizeable consumer segment, supported by its creator-led marketing initiatives and broader product offerings. According to management, the Malay consumer segment continued to record growth in 4QFY26. However, the exact revenue contribution for the quarter has yet to be provided, and we will update our analysis once the relevant data becomes available.
Pharmacy distribution remains a key B2B growth avenue. Pharmacy distribution remains a key B2B growth avenue. Oasis Home continues to expand its presence across pharmacy and retail chains, providing an additional distribution channel for its wellness and health-related products. Based on management's latest update as at 7 July 2026, the Group had commenced distribution through approximately 726 outlets, with confirmed partnerships with Watsons and Health Lane potentially expanding its identified pipeline to over 1,000 outlets. Management also indicated that sales through pharmacy and other retail chains continued to increase in 4QFY26, although the exact breakdown for pharmacy sales has yet to be provided. We will update our analysis once the relevant data becomes available.
Pinduoduo Trend. Pinduoduo concerns may have weighed on recent share price performance, but we see the impact as manageable. We believe the recent weakness in Oasis Home's share price may partly reflect growing market concerns over the increasing penetration of low-priced Chinese e-commerce platforms such as Pinduoduo in Malaysia. Management acknowledged that the trend could place greater pricing pressure on SMEs and trading companies across Malaysia and Southeast Asia, as the influx of competitively priced Chinese products intensifies competition for local retailers. However, management believes Oasis Home is relatively less exposed to direct price competition, as the Group is increasingly focusing on differentiated categories such as health supplements, Korean skincare, lifestyle products and locally produced health foods, while placing greater emphasis on branding and product value rather than competing purely on price.
We also believe factors beyond pricing should help differentiate Oasis Home from cross-border platforms. Consumers may continue to value product quality, trust, faster local fulfilment and more convenient after-sales support, particularly where cross-border purchases involve longer delivery lead times and a more cumbersome return process. This differentiation could be more pronounced in wellness and health-related products, where product authenticity, quality assurance and consumer trust are likely to play a greater role in purchasing decisions than price alone. Coupled with the Group's continued expansion into offline retail channels, we believe Oasis Home's shift towards more differentiated and trust-sensitive product categories should partially mitigate the competitive pressure from low-priced cross-border e-commerce platforms.
Technical Commentary. Oasis Home’s recent share price weakness may reflect concerns over low-cost Chinese e-commerce platforms, but management expects the impact to be manageable given its growing focus on differentiated, higher-value products. From a technical perspective, we view the recent pullback as a potential buying opportunity, as the share price is approaching its rising trendline support. Meanwhile, bearish momentum appears to be easing, with the MACD histogram gradually narrowing, while the RSI is recovering from recent lows. The broader uptrend also remains intact, with the share price continuing to trade above its long-term moving averages, providing further support to the bullish technical structure.
Earnings Revision. Following the stronger-than-expected FY26 results, we raise our FY27F/FY28F/FY29F revenue forecasts to RM125.2m/RM155.1m/RM202.1m (previously: RM111.41m/RM140.09m/RM177.26m), and our core net profit forecasts to RM16.8m/RM22.6m/RM33.4m (previously: RM15.86m/RM21.82m/RM29.97m), representing upward revisions of 12%/11%/14% and 6%/4%/11% respectively. The upward revision is mainly driven by higher assumptions for the Group's third-party e-commerce and digital marketing segment, as well as sales to corporate customers, reflecting the strong growth momentum seen in 4QFY26.
Valuation & Recommendation. We maintain our BUY call with a higher TP of RM0.64 (previous: RM0.61), based on an unchanged 16.3x target P/E multiple applied to our revised blended FY27F/FY28F core EPS of 3.9 sen. The higher TP is driven by our earnings upgrade following the stronger-than-expected FY26 results, particularly the upward revision to our marketplace and digital marketing as well as B2B revenue assumptions.
Risks. Key risks include intensifying competition from low-cost cross-border platforms such as Pinduoduo and Temu, slower-than-expected growth in its marketplace and B2B channels, weaker consumer spending and execution risks from the Group's expansion into new products, channels and markets.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.028078 | 4.060496 |
| EUR | 4.729360 | 4.738927 |
| CNY | 0.601158 | 0.601778 |
| HKD | 0.513500 | 0.517628 |
| SGD | 3.169857 | 3.195407 |