RHB Research believes the current valuation is attractive.
PETALING JAYA: Focus Point Holdings Bhd
is expected to post solid growth in its optical and food and beverage (F&B) businesses this year despite the cautious consumer sentiment.
RHB Research continues to like the company as it believes the current valuation is attractive and unwarranted, considering the robust growth of the optical business and sustainable F&B business turnaround.
The research house shared that the management sees positive growth momentum for its optical business so far in financial year 2024.
This is fuelled by the robust demand for eyewear products on the rising myopic population.
In addition, it said the company’s strategy to target higher-income consumer groups was also key to the resiliency, with the said groups making up 80% of its customers.
It added that Focus Point’s F&B business was also on the right track, after posting an earnings turnaround in this segment in the fourth quarter of financial year 2023.
“It also launched the Hap&Pi frozen yogurt brand, with the first kiosk outlet opening in March,” the research house said.
RHB Research is keeping its “buy” call on the counter with a target price of RM1.02.
