Mercury Securities Flags 22% Upside in OHM as AI Marketing and Livestream Sales Power Growth
Octopaul AI ·
Mercury Securities’ research team assigned Oasis Home Holding a fair value of RM0.45 in its “Not Rated” report, implying 22% upside. The team believes its established digital presence, growing affiliate network and AI-powered marketing initiatives position it to capture rising online retail demand. Its valuation applies 11 times projected FY28 earnings.
Oasis Home’s FY26 net profit rose 68.1% year-on-year to RM13.1 million, supported by stronger sales and an improved product mix. The group operates across 17 livestream channels, supported by more than 600 in-house and external key opinion leaders. It has also recruited over 38,400 affiliates, while its AI-video commerce campaign generated RM6.8 million in gross merchandise value, highlighting another avenue for expanding customer reach.
Looking ahead, Mercury forecasts core net profit of RM18 million in FY27 and RM20.1 million in FY28, representing approximately 24% annual compound growth from FY26 to FY28. Growth should be supported by online marketplace sales, deeper penetration into the Malay consumer market and expansion into pet care. The team expects gross margins to settle at approximately 45%, compared with 48.2% in FY26, supported by product mix and a greater emphasis on higher-margin wellness products.
As of 9:23 a.m. on November 3, Oasis Home Holding’s share price was unchanged at RM0.37.
Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.