TA Research said factors such as an ageing population and the rising use of digital devices have significantly driven the demand for vision care.
PETALING JAYA: Focus Point Holdings Bhd
is in a good position to capitalise on factors that will spur the demand for vision care, analysts say.
TA Research said factors such as an ageing population and the rising use of digital devices have significantly driven the demand for vision care.
“As Malaysia’s largest optical chain, Focus Point is well positioned to capitalise on this growing demand while leveraging economies of scale to deliver high-quality products at competitive prices.
“Looking ahead, the group is on track to open up to 10 new optical stores this year versus a net increase of four last year,” the research house added.
Meanwhile, the research house said it expects the company’s food and beverage (F&B) segment to improve, supported by the onboarding of a new corporate client and increased sales to existing clients.
The research firm reiterated its “buy” call on the stock with a target price of RM0.75 per share based on 12 times next year’s earnings per share due to its resilient business and dividend yield of 5.3% for this year.
Focus Point’s net profit of RM16.4mil for the first half of this year (1H25) was in line with expectations at 46.2% of the research house’s full-year estimates and 43.5% of consensus forecasts.
Net profit for 1H25 grew 3.2% year-on-year (y-o-y) to RM16.4mil, in tandem with increased sales of 4.9% to RM145.7mil.
The improved performance was entirely driven by the optical segment, which delivered a stronger profit before tax of RM24.2mil, up 16.1%, supported by higher sales and enhanced cost efficiencies.
However, the F&B division reported a loss of RM1.6mil compared with profit before tax of RM600,000 in 1H24 due to higher operating costs from its new Komugi outlets. However, revenue rose 3.3% y-o-y to RM22mil, mainly driven by retail sales.
