PETALING JAYA: Focus Point Holdings Bhd
’s higher optical sales and operating efficiency is expected to help lift the group’s profit in the second quarter of 2024 (2Q24) to between RM7.5mil and RM9mil from RM7.4mil in the previous quarter.
Corporate sales would remain its priority and largest customer while Family Mart would gradually be adding about 11 stock-keeping units from 13 currently from July to December 2024.
Its food and beverage (F&B) corporate sales are expected to improve by about RM1mil per month, said TA Research in a report.
Expansion wise, Focus Point plans to open two new Komugi outlets at KL East Mall and Sunway Pyramid this year, and a second HAP & Pi kiosk in Mid Valley Southkey, Johor Baru.
TA Research made no changes to its financial year 2024-2026 earnings projections.
The research house has also maintained a “buy’’ call on the stock with an unchanged target price of RM1.11 a share, based on a price-earnings ratio multiple of 14 times 2025 earnings per share.
“Focus Point’s 1Q24 optical sales rose 15.4% year-on-year (y-o-y) to RM56mil, mainly driven by higher retail outlets and corporate sales, which increased 13.9% and 108.5% to RM50.5mil and RM3.3mil, respectively,” it said.
It said the increase in sales outgrew the average retail sales growth of 7.8% in 1Q24 as reported by Retail Group Malaysia (RGM).
RGM recently cut its estimates for retail sales growth to 3.6% in 2024 (versus 4% in March) to account for weaker 2Q24 data and flagged continued concerns over rising cost of living as the biggest challenge for the retail industry.
Despite that, TA Research believes Focus Point’s sales would remain resilient as eyewear is a necessity, which is less prone to economic slowdown.
It said Focus Point’s management is optimistic on the business environment, targeting to open eight wholly-owned outlets and 10 Sightsavers franchise outlets in 2024 from six in 2023.
In the second half of 2024, the group plans to open its wholly-owned outlets at East Coast Mall Kuantan, Sunshine Central Penang, Cengal Jaya Mall Kedah, 118 Mall and Mayang Mall Terengganu.
Optical corporate sales would grow by at least 70% in 2024, as the group is in the midst of recruiting corporate customers (currently 148) to enhance its recurring sales.
As for its food and beverage segment, retail grew by 21.8% y-o-y to RM5.1mil while corporate sales were up 6.2% y-o-y to RM5mil in 1Q24.
