PETALING JAYA: Focus Point Holdings Bhd
intends to revise its dividend policy by shifting to quarterly dividend payments from the current semi-annual structure.
The company has consistently distributed dividends above its stated 30% payout policy, said Hong Leong Investment Bank (HLIB) Research.
Its balance sheet remains healthy, supported by strong free cash flow generation and a net cash position, providing ample capacity for both growth investments and shareholder returns, it said.
In the near term, its food and beverage (F&B) sales face competitive pressures, and diversification into new convenience store chains, improved central kitchen utilisation and the Komugi brand’s export potential provide a pathway to recovery.
Focus Point is well positioned for a strong fourth quarter of financial year 2025 (4Q25), led by seasonal strength and incremental upside from corporate optical sales, with additional spill-over demand from family upgrades, it said.
Looking ahead, Visit Malaysia 2026 (VM2026), store expansion with attractive payback periods, margin uplift from delayed price pass-through, and sales and service tax savings underpin earnings visibility.
HLIB Research reiterated its “buy” call with an unchanged target price of 83 sen a share, pegged to 14 times the price-to-earnings multiple to financial year 2025 (FY25) earnings per share.
Focus Point’s optical segment is poised for a strong 4Q25, supported by seasonality and incremental demand drivers.
VM2026 is seen as a key structural catalyst, with Chinese tourists continuing to represent a meaningful customer base, especially for sunglasses.
To capitalise on this momentum, the group is accelerating its store expansion plans in 2026, targeting 15 new self-operated optical outlets, with potential upside to this target, alongside five franchise stores.
On margins, management expects a one to two percentage point improvement, driven by Luxottica price increases that have yet to be fully passed through to consumers.
Additionally, the recent reduction in the sales and service tax on rental to 6% from 8% should translate into cost savings, with an estimated annual profit uplift of RM1mil.
Its F&B segment – convenience store chain – remains its core revenue contributor, with historical monthly sales ranging between RM1.3mil to RM1.7mil.
To diversify its customer base, Focus Point commenced product rollouts with a newly established convenience store chain in January 2026, introducing nine stock-keeping units across 100 outlets.
Furthermore, utilisation at the group’s second central kitchen currently stands at 50%, with management targeting an increase to 70% as new clients are onboarded.
Meanwhile, Komugi is expected to open one to two new outlets in FY26.
For its 3Q25, Focus Point’s net profit dipped to RM6.30mil from RM8.12mil in the previous corresponding period.
