PETALING JAYA: Oasis Home Holding Bhd
, en route to a listing on Bursa Malaysia, intends to distribute at least 30% of its profit after tax (PAT) annually as dividends.
TA Research projects a forward dividend yield of 2.4%, 2.9% and 3.6% for the financial year 2025 (FY25), FY26 and FY27, respectively, based on a dividend payout ratio of 30% of its PAT.
Oasis is an omni-channel consumer lifestyle product marketer and seller.
Its listing on the ACE Market of Bursa Malaysia is slated for this month.
For FY24, the firm’s net profit rose 64% to RM8.1mil, primarily driven by higher sales from the live commerce channel, and an improved gross profit margin of 44.5%.
Oasis’ initial public offering (IPO) entails a public issue of 100 million new shares and an offer for sale of 50 million existing shares. Collectively, the share offerings account for 30% of the group’s enlarged issued share capital.
The IPO is priced at 28 sen a share, based on 17.5 times the company’s FY24 earnings per share (EPS).
“Given the absence of directly comparable listed peers in Malaysia with a primary focus on eCommerce, particularly live commerce, we benchmark Oasis against selected regional players.
“After applying a 30% discount to the peer average 2025 price-to-earnings (PER) of 15.4 times to reflect Oasis’s smaller market capitalisation, we derive a target PER of 10.8 times. This implies a target price of 29 sen a share based on the 2025 EPS,” TA Research said in a report.
Its net gearing is expected to improve from 0.49 times to 0.29 times, following the utilisation of the IPO proceeds.
According to TA Research, earnings estimates for FY25 to FY27 are underpinned by several factors including the live commerce market in South-East Asia, which is projected to grow at a two-year compounded annual growth rate or CAGR of 42.5%, reaching US$76.6bil by 2027.
The research firm noted that Malaysian consumers are among the top-three nationalities that watch live commerce sessions most frequently, after Vietnam and Thailand.
The estimated market size for consumer lifestyle product sales in Malaysia is expected to range between RM10.3bil and RM65.9bil from 2025 to 2027. Oasis’s market share in 2024 was minimal, highlighting a significant untapped market potential. It offers a comprehensive portfolio of 5,228 stock-keeping units, comprising a mix of inhouse and third-party brand products.
Going forward, the group plans to introduce five new wellness products by FY25.
It also has plans to set up a new three-storey headquarters in Sepang, Selangor, with a total built-up area of 14,507 sq ft to facilitate its growing operations.
