TA Research said the company's management plans to open additional three Komugi outlets in FY25.
PETALING JAYA: Optical retail chain Focus Point Holdings Bhd
is upbeat on its business prospects this year, buoyed by several drivers.
In a management briefing recently, TA Research said heading into financial year 2025 (FY25), management remains optimistic about the business environment, supported by the prevalence of myopia among Malaysians and an ageing population.
“As a result, it said the group targets opening 10 wholly-owned outlets this year versus net opening of four outlets in 2024. More importantly, the gross profit margin is expected to remain resilient as the group would be able to secure higher rebates,” it said.
FY24 optical sales increased by 13.8% year-on-year (y-o-y) to RM240.8mil, mainly driven by higher retail outlets and corporate sales, which grew 11.9% and 67.6%, reaching RM212.7mil and RM17.9mil, respectively.
Management shared that the number of optical corporate customers stood at 731 and they would continue to recruit more corporate customers to enhance recurring sales, the research house noted.
“We gathered that in the fourth quarter of 2024 (4Q24), the quarterly corporate sales contributed around RM8mil, which was close to the RM10.7mil achieved in the entire FY23,” the brokerage said.
Last week, the Malaysian Medical Device Authority released a statement banning the sale of optical devices and contact lenses on eCommerce platforms, in accordance with the Medical Devices Act 2012 (Act 737).
“All in all, with the latest enforcement of existing guidelines, we believe the ban would mildly benefit Focus Point, given the group’s leading market position in the optical segment with 196 optical stores as of FY24.
“Moreover, the sales of contact lenses, which account for around 20% of Focus Point’s optical revenue, may increase as contact lenses are no longer available through social media or eCommerce websites,” the brokerage added.
On the food and beverage (F&B) segment, it said the management plans to open additional three Komugi outlets in FY25, focusing on second-tier malls. Year-to-date, the group opened its 16th Komugi outlet at DPULZE Shopping Centre in Cyberjaya on Jan 5 this year.
“All in all, we expect the F&B segment’s profit before tax to improve to RM1.1mil in FY25 (versus RM0.2mil in FY24), driven by higher sales, lower flour costs and wastage,” it said. It is maintaining its “buy” recommendation on the stock with an unchanged target price of RM1.07.
