What does Oasis Harvest Corporation’s EGM outcome tell us as an investor?
Oasis Harvest Corporation Berhad (KLSE: OASIS), formerly known as Dolphin International Berhad, has successfully obtained shareholder approval for the disposal of a non-core asset during its Extraordinary General Meeting (EGM) held on 26 March 2025.
The shareholders voted in favour of the proposal to sell a parcel of industrial land in Mukim Petaling, Selangor, which includes a three-storey detached factory, an annexed three-storey office, and a guardhouse, to Crest Systems (M) Sdn Bhd for RM16.5 million. This approval marks a key step in Oasis Harvest’s ongoing strategy to streamline operations and focus on its core business in the food and beverage (F&B) sector.
The disposal, which is expected to be completed by the second quarter of 2025, aligns with Oasis Harvest’s broader objective of unlocking value from non-core assets and redeploying capital towards growth initiatives that are more aligned with its long-term strategy. The proceeds from the disposal will be used to repay bank borrowings amounting to RM6.5 million, allocate RM4 million towards marketing and promotional activities for its F&B outlets, and inject RM5.7 million into working capital.
The rationale for the disposal was clear and compelling. The industrial property, which was initially utilised for the design and development of milling systems for the palm oil industry, has remained vacant and non-revenue-generating since 2015. By divesting this property, Oasis Harvest is not only eliminating an underutilised asset but also reducing the burden of associated maintenance costs and financial liabilities. The disposal will allow Oasis Harvest to focus its efforts on its thriving F&B segment, which has emerged as a key driver of the company’s revenue and growth.
Oasis Harvest’s F&B ventures, led by Uncle Don’s and Verona Trattoria, have established a strong foothold in the market. Uncle Don’s, with over 20 outlets across the Klang Valley, has become synonymous with affordable yet high-quality dining experiences. Verona Trattoria, located in Petaling Jaya, offers authentic Italian cuisine paired with an exclusive selection of French and Argentinian wines, catering to a more refined clientele. These brands have contributed significantly to Oasis Harvest’s revenue growth and have positioned the company as a formidable player in Malaysia’s F&B industry.
The disposal also comes at a time when Malaysia’s F&B industry is poised for continued growth. The sector is forecast to expand by 5.8% in 2024 and accelerate to 6.2% in 2025, driven by a rise in tourist arrivals, increased household spending, and vibrant business-related activities such as meetings, incentives, conferences, and exhibitions (MICE). With a strong portfolio of brands and a clear growth strategy, OASIS HARVEST is well-positioned to capitalise on these favourable market conditions.
Beyond its current F&B ventures, Oasis Harvest is actively exploring opportunities to diversify its business into other high-growth sectors, including travel, leisure and hospitality, events and exhibitions, and the retailing of premium lifestyle goods. This multifaceted approach is designed to create a more diversified and resilient business model, enabling the company to mitigate risks and capitalise on emerging opportunities in various sectors.
As Oasis Harvest moves forward with the implementation of its strategic plans, the successful conclusion of the EGM and the approval of the disposal signal a new phase of growth and transformation for the company. With a clear focus on its core strengths and a commitment to operational excellence, Oasis Harvest is well-positioned to navigate the challenges ahead and emerge as a stronger and more resilient player in the Malaysian corporate landscape.
$DOLPHIN / 5265 (DOLPHIN INTERNATIONAL BERHAD)
