KUALA LUMPUR: Focus Point Holdings Bhd (FPHB) is expected to grow at a five-year compound annual growth of 30 per cent over the next five years, reaching RM40.2 million by financial year 2025 (FY25), said RHB research.
This growth trajectory is driven by multiple factors, including the rising prevalence of vision-related issues attributed to increased screen time and the expanding population affected by presbyopia, driven by demographic shifts towards an aging population.
"We believe this opportunity will be well captured by FPHB considering its market leading position with an extensive store network of 189 outlets as of third quarter of 2023 and various store formats to cater to consumers of different income groups. "We highlight that this business has consistently shown steady growth and superior profitability," RHB research said in a note.
Moving forward, RHB said the group is planning to open 20 outlets (inclusive of 10 franchised stores) in the financial year 2024 forecast (FY24F), which will support its forecasted 12 per cent and 11 per cent growth in segmental revenue and profit before tax.
RHB research maintained its "Buy" call with a target price of RM1.02 on the FPHB segment.
The research house said it foresees a more stable earnings outlook for the food and beverage (F&B) unit after the accumulation of valuable experience over years and with sound expansion plans in place.
After chalking up 9M23 segmental local body tax of RM1.2 million, RHB believes an earnings turnaround is imminent as the main drag in having excess workers was fully resolved in Sep 2023. Venturing into the F&B business in 2012, management has accumulated valuable experience and expertise in managing both the F&B retail and central kitchen operations, it said.
"As such, we look forward to more stable earnings. Plans for this segment include the expansion of the Komugi bakery outlets (3-4 outlets targeted for FY24F) and to secure more corporate customers to fill up the capacity of its central kitchen.On top of that, it is also looking to launch a frozen yogurt brand in view of the growing demand and lucrative profitability, said RHB research.
