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Bilbel Capital H1 2026 Letter
Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy.
In brief
Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy. Bilbel Capital's Water Oasis Group holds HK$1 billion cash and plans to buy clinics to boost profits. Originally reported by Seekingalpha.
Bilbel Capital H1 2026 Letter
Bilbel Capital's H1 2026 letter highlights Water Oasis Group's cash strength and acquisition strategy.
Water Oasis Group
Water Oasis Group Limited began as a beauty product seller and now generates 93% of revenue from services with 14.9% annual profit growth since 2002.
Brand Advantage
Water Oasis lowers perceived risk and raises customer status through strong brand links that keep clients returning.
Prepaid Treatments
Water Oasis offers discounts for prepaying treatments, which customers use to reduce perceived risk and increase brand loyalty.
HK$1 Billion Cash
Water Oasis holds HK$1 billion in cash including HK$750 million of non-refundable customer payments for treatments not yet provided.
Cash Management
Water Oasis uses cash for dividends, opening clinics, share buybacks, and buying existing clinics with 90% profit payout as dividends.
Acquisition Strategy
Water Oasis targets small Hong Kong clinics that face pressure from Shenzhen clinics and rising costs.
Millistrong Acquisition
Water Oasis bought Millistrong Group for HK$29 million after its profits were wiped out by protests and Covid.
Real Profit Calculation
Real profit excludes investment property revaluations and adjusts PP&E depreciation to estimate true earnings.
Profit Projections
Water Oasis could achieve real profit of HK$252 million by 2030 after spending HK$300 million on clinic acquisitions.
CareCloud Analysis
CareCloud's TEBS revenue fell 5.6% after acquisitions but remains within normal structural churn rates.
AI Impact on CareCloud
AI could hurt CareCloud through higher customer acquisition costs, price competition, or lower client revenue.
Bilbel Capital Returns
Bilbel Capital achieved 1,748.3% total return since inception with strong performance in 2022-2025.
Investment Strategy
Bilbel Capital screens 15,000 stocks monthly to find undervalued opportunities with high growth potential.
Dividend Strategy
Water Oasis raised dividends by 43% in May 2026 and plans to buy existing clinics to boost returns.
Future Cash Position
Water Oasis will have HK$879 million cash left by 2030 after spending on clinics and dividends.
The bottom line
Bilbel Capital's Water Oasis Group holds HK$1 billion cash and plans to buy clinics to boost profits.
