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HLIB sees bright future for Focus Point

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The research house maintains its ‘buy’ rating at 76 sen with a target price of RM1.15.

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Focus Point Holdings Bhd’s corporate sales chartered a 56% y-o-y growth on the back of active onboarding of new customers. (Facebook pic)

PETALING JAYA:
Hong Leong Investment Bank (HLIB) Research remains bullish on Focus Point Holdings Bhd’s optical segment and expects the momentum to continue as the group is set to rev up its growth via store expansion and onboarding of new corporate clients.

In a note today, the research house maintained its “buy” rating on Focus Point at 76 sen with an unchanged target price (TP) of RM1.15.

In supporting this, the research house said the group’s corporate sales chartered a 56% year-on-year (y-o-y) growth on the back of active onboarding of new customers.

Focus Point is a Malaysia-based investment holding company principally engaged in the operation of professional eye care centres, trading of eyewear and eye care products, and the provision of medical eye care services.

The company’s segments include optical-related products, franchise management, and food and beverage (F&B).

In addition, HLIB said the group also continues to drive stronger marketing and promotional activities to boost its retail sales.

Meanwhile, for the F&B segment, HLIB is confident that the sales momentum will continue with the increase in orders from new corporate clients.

“Apart from supplying white-labelled products, the diversification includes supplying Komugi, its home-grown Japanese concept bakery outlets with its own frozen products.

“We expect pockets of opportunities with the reopening of China’s borders that could spur tourist momentum,” HLIB said.

That being said, Focus Point’s net profit dropped 32% to RM7.24 million for the second quarter ended June 30, 2023 (Q2 FY2023) from RM10.6 million a year earlier.

Quarterly revenue also decreased 6% to RM63 million from RM67 million previously.

As at 10.48am, Focus Point’s share price was unchanged at 76 sen, giving it a market capitalisation of RM348.81 million.

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