Oasis Home Holding Berhad - Malay Growth Accelerates as Pharmacy Footprint Expands
Thu, 10-Sep-2026 07:18 am
by Wong Kai Heng • Apex Research

Counter

OHM (0357)

Target Price (RM)

0.64

Recommendation

Buy

  • Malay market emerging as a key growth driver: 4QFY26 Malay segment revenue hit RM6.16m (+192% qoq), lifting FY26 contribution to 12.6% of Group revenue from 5.3% in FY25.

  • Pharmacy network continues to scale: total identified footprint reaches c.1,013 outlets (773 operational, including the 117-outlet CTG JV, plus a 240-outlet Health Lane pipeline), with direct-distribution outlets targeted to hit 850 by end-2026.

  • No change to earnings forecasts as current numbers already capture the growth momentum shown in 4QFY26. 

  • Maintain BUY, TP unchanged at RM0.64: based on 16.3x target P/E applied to blended FY27F/28F core EPS of 3.9 sen.

 

Our 4QFY26 results note flagged the exact Malay consumer segment revenue contribution and pharmacy sales breakdown as pending at the time of publication. We provide an update below based on subsequent management guidance.

 

Malay market emerging as a key growth driver. OHM’s Malay segment continued to accelerate, with 4QFY26 revenue reaching RM6.16m, nearly 3x the RM2.11m recorded in 3QFY26, raising its contribution to 17.8% of quarterly revenue. This brought FY26 Malay revenue to RM12.54m, up 3.3x YoY, with its contribution to Group revenue rising to 12.6% from 5.3% in FY25. Management plans to introduce more Malay-focused products and leverage its growing affiliate network to deepen penetration. The sharp increase in contribution, particularly in 4QFY26, supports our view that the Malay market could become a meaningful growth pillar for OHM going forward.

 

AI-video-commerce model validated at scale. OHM’s FIFA World Cup 2026 campaign generated RM6.8m GMV from 74,745 orders, while attracting 38,400 affiliates, more than double its initial target of 18,000. Management plans to retain and train these affiliates to promote wellness, skincare, lifestyle, home & living and personal care products beyond the FIFA campaign. With 100 AI avatars currently being developed, we see scope for AI-video-commerce to evolve from a one-off campaign into a recurring, low-cost customer acquisition and sales channel.

 

Pharmacy network continues to scale. OHM’s pharmacy footprint continued to expand, with total operational outlets reaching 773 as at Jun 2026. This comprises 656 outlets under direct distribution, including Big Pharmacy & Caring (566), independent pharmacies & small chains (45) and Watsons (45), and another 117 outlets through its CTG JV. Management targets 850 direct-distribution outlets by end-2026, providing further room for offline expansion. 

 

Separately, Health Lane’s confirmed pipeline was refined to 240 outlets, from 245 previously, following management’s final reconciliation, with rollout still tentatively targeted for Sep 2026. This brings the Group’s total identified pharmacy footprint to c.1,013 outlets. We see the expanding pharmacy network as an important extension of OHM’s digital ecosystem, allowing the Group to leverage social-media traffic to drive online-to-offline conversion, while enhancing product visibility and consumer trust.

 

Four growth pillars:

  1. Deepen Malay market penetration with new Malay-focused product launches (Velor/Vantor fragrances, SeonSkin/Arisa Korea skincare, Kasuma saffron wellness line).

  2. Enter pet care as exclusive online distributor of third-party brand "Sniffly".

  3. Build a centralised catch-order system and AI-driven marketing operations, targeting ~RM540k p.a. cost efficiency (Phase 1 delivered mid-3QCY26) and 4x community growth (40k to 150k members).

  4. Expanding offline footprint, with direct-distribution pharmacy outlets targeted to reach 850 by end-2026 from 656 as at Jun 2026, alongside 8-10 Glasslock retail counters.

 

Our view. We remain positive on OHM’s medium-term earnings outlook. More importantly, the key takeaway is that the FIFA campaign has transitioned from a one-off sales catalyst into a potentially reusable affiliate ecosystem. Together with the rapid scaling of the Malay segment, pharmacy expansion and increasing AI adoption, OHM is gradually building a more diversified and scalable omnichannel model.

 

Earnings Revision. We make no changes to our FY27F core net profit forecasts of RM16.8m/RM22.6m/RM33.4m, respectively. We believe our forecasts adequately reflect the strong growth momentum demonstrated in 4QFY26, particularly across third-party e-commerce and digital marketing as well as B2B channels.

 

Valuation & Recommendation. We maintain our BUY recommendation with an unchanged TP of RM0.64, based on an unchanged 16.3x target P/E multiple applied to blended FY27F/FY28F core EPS of 3.9 sen. We believe the current valuation does not fully reflect OHM’s growth prospects, supported by continued expansion in marketplace and B2B channels, the growing Malay consumer segment, and its expanding pharmacy distribution network.

 

Risks. Key risks include slower-than-expected growth in marketplace, B2B and pharmacy channels, weaker consumer spending, and execution risks from expansion into new products and markets.

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