Optimistic Growth Prospects for Focus Point Holdings

TA Research said the eyewear business will remain resilient in 2024 amid the prevalence of myopia among Malaysians.

Thus, Focus Point remains optimistic about its optical business’ prospects and is targeting to open 10 new outlets and 10 Sightsavers outlets.

The research house said the group will conduct more marketing and promotional campaigns to improve its market share.

On its F&B prospects, TA Research believes the division will improve, driven by a lower staff headcount, higher margins from frozen yogurt, maiden contributions from new corporate clients and higher orders from existing clients.

Focus Point is targeting to open two new Komugi outlets in Malaysia’s central region and it recently opened a new HAP&PI frozen yogurt kiosk at Mid Valley.

TA Research expects robust growth in sales orders from all existing corporate customers except for a customer that was hit by a boycott.

Focus Point will also benefit from a wave of inbound tourists, with Malaysia expecting five to seven million Chinese visitors this year, which represents a five-fold increase over last year.

The group believes rising tourist spending would be one of the catalysts in boosting FY24 sales, especially in the optical segment.

Johor was the best region for Focus Point in FY23 following the reopening of borders as Singaporeans were attracted by the weaker ringgit and lower optical pricing of about 20%. The group plans to engage with shopping malls to join their privilege card programmes and tourist reward cards.

TA Research forecasts Focus Point’s FY24 net profit to improve by 13.6% to RM34.2mil. The group recorded a net profit of RM30.2mil in FY23, which had already surpassed its pre-pandemic profit of RM9.9mil in FY19. It reiterated its “buy” call with an unchanged target price of RM1.11 per share based on a price-to-earnings ratio multiple of 15 times.