Optimax Holdings has reported a net profit of RM3.8 million for the second quarter of 2024, bringing the total net profit for the first half of the year to RM6.8 million, which constitutes 42% of the company's FY24 forecast and 43% of Bloomberg consensus estimates. Analysts have reiterated an ADD call with a target price of RM0.87, noting that the valuation remains undemanding at -1.0 standard deviation from its average price-to-earnings ratio of 25.3 times for healthcare exposure and growth prospects.

The core net profit for Optimax in the second quarter of FY24 was RM3.8 million, reflecting a 1.2% decline year-on-year but a 25% increase quarter-on-quarter. The results are considered in line with expectations, as continued strong earnings momentum is anticipated in the subsequent quarters of FY24 due to the ramp-up of operations at its new ambulatory care centres (ACC). The flat performance year-on-year was attributed to increased staff costs, higher depreciation, and preoperational expenses that outpaced revenue growth.

In the second quarter, Optimax achieved a revenue increase of 14.9% year-on-year, driven by effective marketing strategies, including ongoing promotions on online platforms and contributions from newly established satellite clinics such as Elmina and Taman Melawati. The company's Cambodia ACC and its first aesthetic clinic, Neumax, located in Atria Mall, Selangor, commenced operations in May 2024, while another ACC in Atria Mall started in July. The new ACC in Kota Kinabalu is also slated to open in the third quarter of 2024. These new facilities are expected to positively influence Optimax's revenue and earnings as they ramp up operations.

Analysts at CGS project a robust compound annual growth rate (CAGR) of 14.5% for Optimax's revenue from FY23 to FY26, primarily driven by an increase in the number of surgeries. The introduction of the new PRESBYOND machine, which is the first of its kind in Malaysia designed for laser refractive treatment for presbyopia (long-sightedness), is expected to enhance the company's service offerings. This machine allows Optimax to attract a different patient demographic compared to its existing Lasik procedures, which primarily appeal to those under 40.

Source: CGS
Title: Look ahead to a stronger 2H24F