A MEMBER OF THE TA GROUP
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*
Focus Point Holdings Berhad Record Second Quarter Performance
- Focus Point Holdings Berhad’s IHFY25 net profit of RM16.4mn was in line with expectations at 46.2% of our full-year estimates and 43.5% of consensus forecasts.
- IH25 net profit grew 3.2% YoY to RM16.4mn, in tandem with increased sales of 4.9% to RM145.7mn. The improved performance was entirely driven by the optical segment, which delivered a stronger PBT of RM24.2mn, up 16.1%, supported by higher sales and enhanced cost efficiencies.
- However, the F&B division reported a loss before tax (LBT) of RM1.6mn compared to a PBT of RM0.6mn in IH24 due to higher operating costs from its new Komugi outlets. Positively, revenue rose 3.3% YoY to RM22.0mn, mainly driven by retail sales.
- QoQ, 2Q25 PBT rose 7.9% to RM11.5mn due to higher PBT margin of 20.8% (+1.8 pts QoQ) in the optical segment, on the back of stronger Ringgit and bulk procurement to secure rebates.
| Bloomberg Code | FPHB MK |
|---|---|
| Stock Code | 157 |
| Listing | Main Market |
| Share Cap (mn) | 616.0 |
| Market Cap (RMmn) | 335.7 |
| 52-wk Hi/Lo (RM) | 0.63/0.52 |
| 12-mth Avg Daily Vol (‘000 shrs) | 511.5 |
| Estimated Free Float (%) | 41.1 |
| Beta | 0.7 |
| Major Shareholders (%) | |
| Liang Liaw Choon – 37.6 | |
| Goh Poi Eong – 12.9 | |
| Perbadanan Nasional Bhd – 8.4 | |
| FY25 | FY26 | |
|---|---|---|
| Forecast Revision (%) | 0.0 | 0.0 |
| Net profit (RMm) | 35.4 | 38.7 |
| Consensus | 37.6 | 41.4 |
| TA’s / Consensus (%) | 94 | 93 |
| Previous Rating | Buy (Maintained) | |
| Consensus TP (RM) | 0.78 | |
| FY25 | FY26 | |
|---|---|---|
| Net gearing (x) | Net cash | Net cash |
| CFPS (sen) | 2.9 | 3.1 |
| ROA (%) | 11.4 | 11.9 |
| ROE (%) | 23.2 | 22.5 |
| NTA/Share (RM) | 0.2 | 0.3 |
| Price/NTA (x) | 2.2 | 2.0 |
| % of FY | ||
|---|---|---|
| vs TA | 46.2 | Within |
| vs Consensus | 43.5 | Within |
| Price Change | FPHB | FBM KLCI |
|---|---|---|
| 1 mth | (0.5) | 4.2 |
| 3 mth | (7.4) | 2.2 |
| 6 mth | (7.4) | 0.6 |
| 12 mth | (8.6) | (3.5) |
- No change to our FY25-27 earnings forecasts.
- Factors such as an aging population and the rising use of digital devices have significantly driven the demand for vision care. As Malaysia’s largest optical chain, Focus Point is well positioned to capitalize on this growing demand while leveraging economies of scale to deliver high-quality products at competitive prices. Looking ahead, the group is on track to open up to 10 new optical stores in 2025 (vs. net increase of 4 in FY24).
- Meanwhile, we expect the F&B segment to improve, supported by the onboarding of a new corporate client and increased sales to existing clients.
- We reiterate Buy on the stock with a target price of RM0.75/share based on 12.0x CY26 EPS due to its resilient business and dividend yield of 5.3% for FY25.
| FYE Dec (RM mn’) | 2QFY24 | 1QFY25 | 2QFY25 | QoQ | YoY | IHFY24 | IHFY25 | YoY | ||
|---|---|---|---|---|---|---|---|---|---|---|
| RM mn’ | RM mn’ | RM mn’ | % | % | RM mn’ | RM mn’ | % | |||
| Revenue | 70.6 | 72.9 | 72.8 | (0.2) | 3.1 | 138.9 | 145.7 | 4.9 | ||
| – Optical | 58.7 | 61.1 | 60.6 | (0.7) | 3.3 | 115.5 | 121.7 | 5.3 | ||
| – Food and beverage | 10.9 | 10.9 | 11.1 | 2.2 | 1.7 | 21.3 | 22.0 | 3.3 | ||
| – Others | 1.0 | 1.0 | 1.1 | 5.0 | 5.8 | 2.1 | 2.1 | (2.2) | ||
| Gross profit | 45.9 | 48.5 | 49.3 | 1.7 | 7.6 | 90.6 | 97.9 | 8.0 | ||
| EBITDA | 23.5 | 23.4 | 24.3 | 3.7 | 3.3 | 45.7 | 47.7 | 4.4 | ||
| Depreciation | (11.1) | (11.5) | (11.4) | (0.1) | 3.4 | (22.0) | (22.9) | 4.0 | ||
| EBIT | 12.4 | 12.0 | 12.8 | 7.4 | 3.2 | 23.6 | 24.8 | 4.9 | ||
| Finance income | 0.5 | 0.4 | 0.4 | 5.8 | (11.9) | 0.9 | 0.8 | (13.2) | ||
| Finance cost | (1.5) | (1.7) | (1.8) | 3.7 | 15.0 | (3.1) | (3.5) | 9.9 | ||
| Share of profit in associates | 0.0 | 0.1 | 0.1 | (1.8) | >100 | 0.1 | 0.2 | >100 | ||
| PBT | 11.4 | 10.6 | 11.5 | 7.9 | 1.0 | 21.4 | 22.1 | 3.4 | ||
| – Optical | 11.0 | 11.6 | 12.6 | 8.6 | 14.9 | 20.9 | 24.2 | 16.1 | ||
| – Food and beverage | 0.7 | (0.7) | (0.8) | 12.9 | >-100 | 0.6 | (1.6) | >-100 | ||
| – Others | (0.3) | (0.2) | (0.3) | 25.1 | 3.4 | (0.1) | (0.5) | >-100 | ||
| Income tax expense | (2.9) | (2.7) | (3.0) | 11.0 | 3.3 | (5.6) | (5.8) | 3.8 | ||
| PAT (-MI) | 8.4 | 7.9 | 8.4 | 6.9 | 0.2 | 15.8 | 16.4 | 3.2 | ||
| Adj. EPS (sen) | 1.4 | 1.3 | 1.4 | 6.8 | 0.0 | 2.6 | 2.7 | 3.1 | ||
| Adj. DPS (sen) | 0.0 | 1.3 | 0.0 | nm | nm | 1.3 | 1.3 | 0.0 | ||
| Profitability ratios | PP | PP | % | % | PP | |||||
| GP margin | 64.9 | 66.5 | 67.8 | 1.3 | 2.9 | 65.2 | 67.2 | 1.9 | ||
| PBT margin | 16.1 | 14.6 | 15.8 | 1.2 | (0.3) | 15.4 | 15.2 | (0.2) | ||
| – Optical | 18.7 | 19.0 | 20.8 | 1.8 | 2.1 | 18.1 | 19.9 | 1.8 | ||
| – Food and beverage | 6.2 | (6.8) | (7.5) | (0.7) | (13.7) | 2.6 | (7.2) | (9.8) | ||
| – Others | (29.4) | (24.1) | (28.7) | (4.6) | 0.7 | (2.4) | (26.5) | (24.1) | ||
| Tax rate | 25.8 | 25.7 | 26.4 | 0.7 | 0.6 | 25.9 | 26.1 | 0.1 | ||
| PAT (-MI) margin | 11.9 | 10.8 | 11.6 | 0.8 | (0.3) | 11.4 | 11.2 | (0.2) |
| FYE Dec (RM mn’) | FY23 | FY24 | FY25F | FY26F | FY27F |
|---|---|---|---|---|---|
| Revenue | 260.9 | 292.5 | 312.9 | 334.4 | 351.0 |
| Depreciation & amortisation | (43.8) | (45.3) | (47.6) | (46.1) | (44.0) |
| PBT | 39.9 | 43.7 | 46.9 | 51.1 | 53.1 |
| Taxation | (9.7) | (10.5) | (11.5) | (12.4) | (12.9) |
| PAT (-MI) | 30.2 | 33.2 | 35.4 | 38.7 | 40.3 |
| Adj. EPS (sen) | 4.9 | 5.4 | 5.7 | 6.3 | 6.5 |
| EPS growth (%) | (15.9) | 10.1 | 6.7 | 9.3 | 4.1 |
| PER (x) | 11.1 | 10.1 | 9.5 | 8.7 | 8.3 |
| Adj. DPS (sen) | 2.3 | 2.6 | 2.9 | 3.1 | 3.3 |
| Dividend yield (%) | 4.1 | 4.8 | 5.3 | 5.8 | 6.0 |
Sector Recommendation Guideline
OVERWEIGHT: The total return of the sector, as per our coverage universe, exceeds 12%.
NEUTRAL: The total return of the sector, as per our coverage universe, is within the range of 7% to 12%.
UNDERWEIGHT: The total return of the sector, as per our coverage universe, is lower than 7%.
Stock Recommendation Guideline
BUY : Total return of the stock exceeds 12%.
HOLD : Total return of the stock is within the range of 7% to 12%.
SELL : Total return of the stock is lower than 7%.
Not Rated: The company is not under coverage. The report is for information only.
Total Return of the stock includes expected share price appreciation, adjustment for ESG rating and gross dividend. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting.
Total Return of the sector is market capitalisation weighted average of total return of the stocks in the sector.
ESG Scoring & Guideline
| Scoring | Environmental | Social | Governance | Average |
|---|---|---|---|---|
| ★★★ | ★★★★ | ★★★ | ★★★ | |
| Remark | Direct environment impact is limited. Using LED to reduce the overall energy consumed. | Does CSR campaign and donations. Proper training provided to workers. | Fair governance practices. Rewards shareholders with good dividends. |
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
As of Wednesday, August 20, 2025, the analyst, Tan Kong Jin, who prepared this report, has interest in the following securities covered in this report:
(a) nil
Kaladher Govindan – Head of Research
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