Oasis Harvest Successful Business Restructuring Shows in Q1 FY2025

Oasis Harvest Corporation Berhad (or “Oasis Harvest” for short) has kicked off its financial year with a subdued performance for the first quarter ended 31 March 2025. The Group posted a revenue of RM2.72 million, down from RM4.34 million in the preceding quarter and RM3.72 million in the corresponding quarter last year.

The decline was primarily attributed to lower sales from its food and beverage (F&B) business, particularly due to the reduced number of operating Uncle Don’s outlets, which dropped from six to three.

In terms of bottom line, the Group recorded a pre-tax loss of RM0.97 million in Q1 FY2025, reversing sharply from the RM2.16 million profit recorded in Q4 FY2024. This turnaround was expected, considering that the previous quarter had benefitted from a one-off RM5.35 million waiver and a RM4.85 million compensation gain tied to the underperformance of Oasis Harvest Reserve Sdn Bhd under its profit guarantee scheme.

Looking at the technical picture, Oasis Harvest’s share price has shown signs of consolidation in recent weeks, trading within a narrow band around RM0.175. After a mild pullback from its recent peak of RM0.205 in April, the price appears to be finding stability, supported by a flattening of the Moving Average Ribbon. This suggests that selling pressure may be easing, paving the way for a potential rebound once market sentiment improves.

Meanwhile, the MACD indicator, though currently below the signal line, is approaching oversold territory. Historically, such conditions have preceded technical bounces. With the broader structure showing no steep breakdown and price still supported above its mid-term averages, investors may interpret the current phase as a healthy pause following the early-year rally.

As the Group continues its restructuring journey, including optimising F&B operations and re-aligning resources post-private placement, a clearer earnings picture could emerge in subsequent quarters. Coupled with more stable price action, the market could begin to price in a turnaround if operational momentum improves.

In the near term, RM0.170 serves as a key support level, with RM0.185 as the next resistance to watch. A successful retest and breakout above RM0.185 may reaffirm bullish sentiment. Investors will be watching closely for updates on outlet performance and broader strategic progress.

$DOLPHIN / 5265 (DOLPHIN INTERNATIONAL BERHAD)