OPTIMAX: Financial Results Meet Expectations Amid Strategic Expansion

Performance Review

Optimax Holdings (Optimax) reported a solid financial performance for the fourth quarter of fiscal year 2025 (4QFY25), with its core net profit increasing by 10.4% year-on-year to RM3.4 million. This was accompanied by a 5.3% year-on-year growth in revenue, reaching RM36.1 million. The results were largely in line with both Public Investment Bank’s and consensus expectations, accounting for 99% and 96% of the full-year forecasts, respectively.

The positive performance was primarily driven by strategic initiatives, including effective marketing campaigns across online platforms, robust contributions from newly established satellite clinics and centres, and a notable increase in cataract surgery volumes. Significantly, Optimax’s operations in Cambodia recorded exceptional growth, with revenue exceeding RM1.7 million in 4QFY25, marking an increase of over 100% year-on-year.

Operational Efficiencies and Challenges

Despite the strong revenue growth, the growth in pre-tax profit (PBT) experienced some moderation. This was mainly due to several factors impacting operational costs. Higher operating equipment maintenance expenses, elevated depreciation charges stemming from newly acquired property, plant, and equipment (PPE), and a one-off asset write-off of RM0.69 million recognized in the fourth quarter all contributed to this moderation. As a result, the gross profit (GP) margin saw a slight dip, moving from 42.0% in 4QFY24 to 41.4% in 4QFY25.

Future Outlook and Recommendation

Looking ahead to FY26, Public Investment Bank maintains a positive outlook on Optimax’s growth trajectory. This optimism is underpinned by the resilient demand for healthcare services and increasing health awareness among both domestic and international patients. Optimax is strategically positioned to leverage these trends through the continued expansion of its Ambulatory Care Centres (ACCs) and satellite clinics in high-footfall locations across Malaysia. While the company completed its FY2024 expansion phase, the immediate focus will shift towards improving the utilization rates of its newly established centres, many of which are already achieving self-sustaining levels.

Public Investment Bank reiterates its “Outperform” call on Optimax, with an unchanged target price of RM0.72. This target is based on a FY26F 23x P/E multiple, consistent with its 1-year average forward P/E. Furthermore, Optimax proposed a second interim dividend of 0.6 sen per share, bringing the total dividend per share for FY24 to 1.4 sen, an increase from 1.3 sen in FY24.