TA Research notes the group has been growing its market share.
PETALING JAYA: Focus Point Holdings Bhd
is planning to open eight to ten outlets in 2025.
The company, which is involved in the operation of professional eye care centres, trading of eyewear and eye care products, currently has 196 optical outlets with more than 220 qualified optometrists and opticians.
In its 2025 strategy report, TA Research notes the group has been growing its market share.
“We believe that optical corporate sales would grow by at least 35% in 2025 as the group is in the midst of recruiting corporate customers to enhance its recurring sales.
“In addition, Focus Point will conduct more marketing and promotional campaigns to improve its leading market position in the optical segment,” said the research firm, which lists the stock as one of its top picks for 2025.
The company also has a food and beverage (F&B) segment. The F&B segment posted a turnaround with a profit before tax of RM0.2mil in the nine-month period of financial year 2024 (9M24), driven by higher sales of 5.4% to RM31.5mil.
“Into FY25, we expect the F&B segment to improve further on the back of more innovative products to corporate clients, new F&B Komugi outlet openings and cost efficiency.
“Overall, management expects the F&B segment contribution to increase to 20% to 30% (versus 15.1% in 9M24) of the group’s total revenue over the next two to three years.”
TA Research has a RM1.11 target price on the stock based on 14 times 2025 earnings per share.
The research firm said it likes the stock due to its resilient optical segment and growing F&B segment.
One risk is its low trading liquidity.
The top three shareholders collectively hold about 58.9% stake in the company.
In the third quarter of financial year 2024 (3Q24), Focus Point’s net profit came in at RM8.1mil, up 26.8% year-on-year.
This brought 9M24 core earnings to RM24mil.
Analysts expect the group to deliver seasonally strong earnings in 4Q24.
