[Click eStock] "Jieosoft, Expected to Expand Scale through M&A and Aggressive Advertising"

KB Securities analyzed on the 11th that JioSoft is expected to expand its scale this year through mergers and acquisitions (M&A) and aggressive advertising campaigns.

JioSoft's consolidated sales last year amounted to 547.2 billion KRW, a 7.5% increase compared to the previous year, and operating profit grew by 91.3% to 29.1 billion KRW. The operating profit margin (OPM) improved significantly to 5.3%. Net profit also increased by 78.3% to 28 billion KRW.

The growth of its core subsidiary, Oasis, is also remarkable. Oasis's estimated sales last year were 512.2 billion KRW, up 7.7% year-on-year, and operating profit increased by 74.8% to 22.2 billion KRW. Net profit reached 22.5 billion KRW, growing 67.9%. The number of members increased from 1.68 million at the end of 2023 to 1.96 million by the end of 2024, surpassing 2 million last month.

Hyunkyum Kim, a researcher at KB Securities, stated, "Oasis Market is a standout company in the domestic e-commerce sector," and forecasted continued growth for Oasis.

Oasis plans to actively expand its scale this year. In particular, it aims to strengthen market dominance through M&A and aggressive advertising. Since March, it has been conducting large-scale events celebrating surpassing 2 million members using advertisements on Naver's main page (website and mobile), actively attracting new customers.

Oasis is also showing proactive moves in terms of M&A. According to media reports, Oasis has signed a ‘conditional investment agreement’ to acquire TMON, which is undergoing corporate rehabilitation (court receivership). The sale of TMON is proceeding via the ‘Stalking Horse’ method, with EY Han Young, the sale manager, announcing the sale this week and planning to finalize the buyer next month through a public bidding process.

Researcher Kim explained, "This attempt to acquire TMON is expected to create synergy by increasing brand awareness through securing TMON’s 28 million-member database and converting TMON’s business structure, which was mainly open market-based, into a direct purchase structure by utilizing the fulfillment services of its subsidiary, Root." He added, "It will serve as an opportunity to expand from a metropolitan-centered operation to a nationwide e-commerce presence."

Oasis had previously attempted to acquire 11st but the deal fell through. However, its participation in the TMON acquisition reconfirms its intention to expand its scale. Researcher Kim predicted, "If Oasis succeeds in acquiring TMON, investor interest in JioSoft will further increase, aligned with the market trend showing a strong domestic consumption preference amid recent Trump tariff issues."