PETALING JAYA: Focus Point Holdings Bhd
is expected to sustain its growth momentum despite softer consumer spending, supported by an aggressive outlet expansion strategy, growing corporate optical sales and an expanding business-to-business (B2B) food and beverage (F&B) segment.
Hong Leong Investment Bank (HLIB) Research said the optical retailer has targeted 20 new outlets this year, with approximately 40% already completed. It has also maintained its long-term goal of 300 outlets by 2030 from about 210 currently.
“Encouragingly, we gather that selected stores in prime locations have achieved payback periods of less than one year. Management is increasingly focusing on street-front locations, which carry lower rental costs (approximately 10% of sales versus 15% to 20% for mall outlets), enhancing margins and strengthening its position against traditional optical players,” HLIB Research further noted in a report following a meeting with Focus Point.
Within its F&B segment, Focus Point has begun supplying pastry products to a Chinese coffee chain in Malaysia. Discussions to expand the partnership to the chain’s Singapore operations are at an advanced stage, with initial shipments expected within the month, providing an additional avenue for B2B growth.
HLIB Research added that corporate optical sales continued to record high double-digit growth (FY25: approximately 60% year-on-year) while still contributing less than 20% of optical segment revenue, suggesting ample room for further expansion.
“Given the recurring nature of corporate vision screening and employee healthcare programmes, we view this as a relatively sticky and defensive revenue stream.”
The planned October launch of Ray-Ban Meta smart glasses is also expected to strengthen its premium product offerings.
“Beyond volume growth, supplier sponsorships for marketing and promotional activities continue to support brand visibility while partially offsetting advertising costs. Meanwhile, the Visit Malaysia Year 2026 campaign should provide modest upside to outlets with higher tourist exposure, including KLCC, Pavilion Kuala Lumpur and South Quay.”
It said the stock’s current valuation remains undemanding with financial year 2026 (FY26) and FY27 price-to-earnings (PE) at eight times and 7.4 times, respectively. “We reiterate our ‘buy’ call with a target price of RM0.89, pegged at 14 times FY26 PE.”
Another analyst said the stock’s valuation remains undemanding, backed by a dividend yield of around 6% to 7% and robust growth catalysts.
He expects its earnings momentum to be sustained, building on from a record FY25 and its strongest ever first-quarter performance in FY26.
Focus Point shares were trading at 51 sen at the time of writing, translating to a market capitalisation of RM314.16mil.
