Mercury Securities also said it is leaving its FY25/FY26 earnings unchanged for now.
PETALING JAYA: Analysts are cautiously optimistic about optical retail chain Focus Point Holdings Bhd
’s recently proposed corporate exercises.
The company has proposed a one-for-three bonus issue, a dividend reinvestment plan (DRP) and a share grant plan of up to 10%, with the ex-date still to be determined.
In a report, TA Research said it is cautiously optimistic about the proposed exercises.
“The bonus issue aims to reward existing shareholders for their continued support for Focus Point.
“Additionally, we believe that the bonus issue will further enhance share liquidity. Based on our target price of RM1.07, the adjusted ex-bonus price will be 80 sen.”
Meanwhile, under the DRP, shareholders can increase their stake in the group by opting to reinvest their dividends. This will preserve cash flow for Focus Point, the research house stated.
Nevertheless, it is not making any change to its financial year ending Dec 31, 2025 (FY25) to FY27 earnings per share and dividend per share forecasts, pending the completion of these exercises.
It is also maintaining Focus Point’s target price at RM1.07 per share based on a price earnings multiple of 14 times 2025 earnings per share.
At last look the stock was at 75 sen.
In its report, Mercury Securities also said it is leaving its FY25/FY26 earnings unchanged for now.
“We await the completion of the proposed exercise before we reflect its effectively enlarged share base into our model.
“No earnings-accretive adjustments to be made as it does not involve any fundraising.”
It said, as the only listed optical business, Focus Point has a unique advantage of offering such a structured plan, differentiating itself from unlisted competitors that cannot replicate it.
It said following a recent company visit, it observed that all Focus Point stores are strategically positioned in prime areas of Mid Valley Megamall, Kuala Lumpur.
The store sizes are thoughtfully designed, averaging between 600 and 1,000 sq ft, allowing customers to browse the full range of products comfortably at a glance, the research house noted.
It said the optical division remains the key driver, backed by its extensive 196-store network and ongoing expansion plans.
“Management has outlined plans to open 10 new stores in FY25 at strategic locations such as IOI Mall Damansara, Mitsui Sepang, Sabah and Sarawak.”
