Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Water Oasis Group Limited operates as an investment holding company primarily focused on providing a diverse range of beauty and wellness services, segmented into Product and Service divisions. The company delivers general, specialist, and medical beauty treatments to a broad clientele, encompassing high-end, mid-range, and mass-market consumers, catering to both men and women. Beyond its core beauty offerings, it also manages an online floral shop under the Oasis Florist brand and a manicure business named Oasis Nail. In terms of products, Water Oasis develops and markets its own skincare lines, Glycel and Eurobeauté, alongside its medical beauty brand, DermaSynergy. Furthermore, it engages in the retail and distribution of third-party skincare products from brands like Erno Laszlo and H2O+. The group's activities also extend to online skincare sales, the provision of beauty equipment, property holding, and the production and sale of cold-pressed fruit juice. As of September 30, 2021, the company operated 17 Oasis Beauty centers in Hong Kong (including 15 Oasis Beauty and 2 Oasis Homme locations) and 3 company-managed Oasis Beauty centers in Beijing, People's Republic of China. Established in 1998, Water Oasis Group Limited is headquartered in Causeway Bay, Hong Kong.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT