[Click eStock] "JieoSoft Beats Q3 Consensus... Oasis Subscribers Surpass 1.6 Million"

Hanyang Securities analyzed on the 17th that GeoSoft's subsidiary, Oasis, a fresh food dawn delivery company, drove the third-quarter performance this year as its online membership surpassed 1.6 million.

GeoSoft recorded sales of 127.3 billion KRW and an operating profit of 6.4 billion KRW in the third quarter of this year, marking a 10.5% increase and a turnaround to profitability compared to the same period last year. This exceeded consensus expectations.

Lee Jun-seok, a researcher at Hanyang Securities, stated in a report on the same day, "The increase in single-person households, accelerated concentration in the metropolitan area, and the untact trend spread by COVID-19 are promoting growth in the fresh food dawn delivery market," adding, "The sharp rise in new Oasis members proves this and is expected to have a positive effect on GeoSoft's stock price."

The number of Oasis online members rapidly increased from 230,000 in 2019 to 1.6 million as of October 2023. During the same period, sales rose from 159.6 billion KRW to 377.8 billion KRW in cumulative third-quarter sales. The average purchase amount per online transaction also increased from 30,595 KRW to 41,029 KRW.

Researcher Lee said, "By utilizing efficient cost reduction through distribution structure optimization, a smart logistics center with a 'combined packaging' structure, and the independently developed logistics solution 'Oasis Route,' Oasis continues to maintain profitability compared to competitors," and added, "Although there is seasonal low demand in the fourth quarter, considering the wellness era and Oasis's solid position as a dawn delivery player, the upward trend in Oasis's cumulative online customer base is unlikely to be broken."

Furthermore, he noted, "The SSG.com listing issue will also inject momentum into GeoSoft's stock price," and stated, "As of the third quarter consolidated basis, cash and cash equivalents held amount to 152.4 billion KRW, and considering the performance and cash holdings, the current market capitalization of 115 billion KRW is judged to be excessively undervalued."