(A Participating Organisation of Bursa Malaysia Securities Bhd.)
Results Note
Wednesday, August 20, 2025
Research Team Coverage
research@mersec.com.my
Main Market
Consumer Products & Services Sector
BUY
TP: RM1.79
Last Closing Price: RM0.55
Focus Point Holdings Bhd: Special Report
Focus Point Holdings Bhd: Solid 1H Performance, Brighter 2H Ahead
Share Price Performance
Graph showing share price performance from August 2023 to February 2025 with price range (RM) on left axis (0.50 – 1.20) and Relative to KLCI (%) on right axis (50 – 110).
Business Overview
Focus Point Holdings Berhad operates the largest optical chain store in Malaysia. They have also diversified their business into the food and beverages sector with Komugi and HAP&PI.
Return Information
KEY DATA | |
---|---|
1,590.3 | |
YTD KLCI chg. | (3.1) |
YTD Stock price chg. | (9.2) |
Price Performance
1M | 3M | 12M | |
---|---|---|---|
Absolute (%) | (1.1) | (2.9) | (8.0) |
Relative to KLCI (%) | (5.5) | (5.8) | (5.8) |
Stock Information
Market Cap. (RM m) | 335.7 |
Issued Shares (M) | 616.0 |
52-week High (RM) | 0.66 |
52-week Low (RM) | 0.54 |
Est. Free Float (RM) | 56.9 |
Est. Free Float (%) | 0.4 |
Beta | 0.8 |
3-month Avg Vol. (M) | 4.5 |
Shariah Compliant | Yes |
Bloomberg Ticker | FOCUSD MK |
Top Shareholders
Dato’ Liaw Choon Liang | 37.9 |
Datin Goh Poi Eong | 12.9 |
Employee Provident Fund | 10.3 |
Key Financial Highlights
Y/E Dec (RM m) | FY22A | FY23E | FY24F | FY25F | DEVSF | DGSE |
---|---|---|---|---|---|---|
Revenue | 292.8 | 329.7 | 367.6 | 399.9 | ||
EBITDA | 109.3 | 102.6 | 109.0 | 117.8 | ||
PBT | 43.7 | 49.4 | 55.0 | 62.1 | ||
Net Profit | 33.2 | 37.5 | 41.8 | 47.4 | ||
Core PBT | 33.2 | 37.5 | 41.8 | 47.4 | ||
Core Net Profit | 7.2 | 8.1 | 9.0 | 10.2 | ||
Core EPS growth (%) | 10.1 | 13.0 | 11.3 | 13.6 | ||
Net PBT Per Share | 4.5 | 5.1 | 5.7 | 6.4 | ||
BV Per Share (sen) | 29.2 | 34.9 | 40.3 | 46.7 | ||
Net Yield (%) | 4.8 | 3.1 | 4.7 | 5.1 | ||
ROE (%) | 10.1 | 12.5 | 13.6 | 14.8 | ||
P/E (x) | 24.6 | 23.3 | 22.4 | 19.8 |
Summary
Focus Point Holdings Bhd (FOCUSD) 1H25 results were within expectations, accounting for ~44% of both ours and consensus full-year forecast. We remain positive on FOCUSD’s growth prospects, underpinned by its leading position in the eyewear business and rising myopic prevalence, continuous store expansion (>10% SSG), and ongoing brand-building efforts. We also expect a recovery in 2H25 from the F&B operations. As such, we maintain our valuation forecasts and reiterate our BUY call with TP of RM0.79 (+44%), based on 13x FY25E EPS.
Core earnings within expectations.
FOCUSD delivered its strongest first-half performance to date, with 1H25 revenue of RM169.1m (+RM17.5m / +11.6% QoQ to RM169.1m in 1H24) and core net profit improving 2.9x YoY to RM15.9m (vs. RM5.8m in 1H24). This represents 44% of both our and consensus full-year forecasts. While we deem 1H25 as we expect a stronger 2H25 ahead on seasonality for the 31 July (RM) Shareholders. Approved service corporate exercises, including (1) for 3-bonus issue expanding the share base from 462m to 616m shares; (1-free float at ~56%), a dividend reinvestment plan, and a share grant plan that took effect yesterday.
Optical segment continues to shine.
Revenue momentum remained solid, rising 6.8% YoY to RM121.7m, underpinned by robust store expansion and healthy (~10% SSG) at its effective brand-building initiatives. Consumer engagement is ramping up with 2H25 roadshows at the Sunway Pyramid Mall, Mid Valley KL, Mid Valley Southkey, and Setia City Mall, alongside expanding 360 AiDec and AirDoc AI services to 100 outlets (vs. 70 in FY24). Referring to 1QFY25, management had guided for 10 new store openings (including 5 franchises) and 8 refurbishments in FY25. Progress had been on track, with 5 new openings in 2Q25, including IOI Mall and Sunway Carnival at 2QFY25. For 3QFY25, the group is targeting 3 wholly owned outlets and one franchise, comprising (i) Spring Bintulu (opened in July), (ii) Sunway Square, and (iii) Bintulu (franchise). Another 3 outlets are targeted for 4QFY25, bringing the store count to 223 (vs. 210 in FY24). Meanwhile, corporate services saw a sharp pick-up with client base expanding to 180 (vs. 600 in FY24), further strengthening top-line visibility. Early performance in East Malaysia rollout is also encouraging, with sales trending close to Peninsular averages.
Top-line gains from pricing strategy.
Management disclosed that one of its key suppliers has recommended a selective 15% price adjustment effective mid to end-running to manage average ~30% of its product portfolio effective the upcoming 1 to 2 months. Importantly, the adjustment will not involve higher procurement costs, thereby offering immediate upside to margins and top-line growth in the 2H25. Separately, the expanded Sales & Services Tax (SST) is expected to add ~RM0.5m to monthly operating costs, though management is still engaging with landlords on exemption clarification. We view the impact as manageable relative to overall earnings, with margin expansion likely remain intact given structural benefit from pricing initiatives and operating leverage.
F&B segments softened in 1H, recovery expected in 2H.
It posted a solid 5.7% YoY revenue increase to RM33.0m in 1H25, led by stronger retail performance and more innovative HALAL-certified offerings. However, corporate sales were softened during the period, resulting in PBT of -RM1.6m (PBT margin: -7.3%). We expect a turnaround in 2H25, underpinned by (i) supplies of new Komugi products to Village Grocer, (ii) ongoing internal rationalisation initiatives at Komugi, and (iii) gradual recovery in corporate orders from FamilyMart. The group continues to operate 39 outlets (23 franchises, 16 wholly owned), of which 16 are Komugi and 1 is Hap & Pi), with central kitchen utilisation already at 90-95%. Discussions with several major coffee chains to further lift utilisation of its central kitchen are progressing positively. Meanwhile, a RM0.25m write-off was recorded in 1H25 due to the closure of Komugi in Bandar Mahkota Cheras outlet.
(A Participating Organisation of Bursa Malaysia Securities Bhd.)
Results Note
Results Note
Key financial highlights
Y/E Dec (RM m) | 2Q25 | 1Q25 | QoQ Chg. % | 2Q24 | YoY Chg. % | 6M25 | 6M24 | YoY Chg. % | Comments |
---|---|---|---|---|---|---|---|---|---|
Revenue | 72.8 | 72.9 | (0.2) | 70.6 | 3.1 | 145.7 | 68.3 | 4.9 | Look into revenue breakdown. |
Gross profit | 48.3 | 44.2 | 9.3 | 49.9 | (3.2) | 92.5 | 90.7 | 2.0 | |
Operating profit | 12.7 | 11.8 | 7.5 | 12.4 | 2.7 | 24.6 | 23.3 | 5.6 | |
Pretax profit | 11.5 | 10.6 | 8.9 | 11.4 | 1.0 | 22.2 | 10.0 | 3.4 | |
Net profit | 8.4 | 7.9 | 6.3 | 8.4 | (0.4) | 16.3 | 7.4 | 2.9 | |
Core net profit | 8.4 | 7.9 | 6.3 | 8.4 | (0.4) | 16.3 | 7.4 | 2.9 |
Per share data
EPS (sen) | 1.4 | 1.7 | (19.9) | 1.8 | (25.1) | 3.1 | 3.4 | (9.0) | |
Core EPS (sen) | 1.4 | 1.7 | (19.9) | 1.8 | (25.1) | 3.1 | 3.4 | (9.0) | |
Net DPS (sen) | 0.0 | 1.8 | 1.8 | 1.8 | 1.8 | ||||
BV/share (sen) | 30.9 | 30.9 | (0.3) | 27.2 | 13.3 | 30.9 | 27.2 | 13.6 |
Margins
Gross profit (%) | 67.8 | 66.5 | 1.3 pts | 64.9 | 2.9 pts | 67.2 | 66.2 | 1.0 pts | Better GP margin YoY. |
Operating profit (%) | 17.5 | 16.2 | 1.3 pts | 17.6 | (0.1 pts) | 16.9 | 17.0 | (0.1 pts) | |
Pretax (%) | 15.8 | 14.6 | 1.2 pts | 16.1 | (0.3 pts) | 15.2 | 13.4 | 1.8 pts | |
Net profit (%) | 11.5 | 10.8 | 0.7 pts | 11.9 | (0.4 pts) | 11.2 | 11.4 | (0.2 pts) | Stable NP margin YoY |
Other highlights
Revenue breakdown
– Optical related | 60.6 | 61.1 | (0.7) | 57.9 | 4.6 | 121.7 | 113.9 | 6.8 | Strong marketing activities. |
– Food and beverages | 11.1 | 10.9 | 2.0 | 10.7 | 3.9 | 22.0 | 20.9 | 5.2 | |
– Franchise management | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
– Others | 1.1 | 1.0 | 5.0 | 1.0 | 5.8 | 2.1 | 2.1 | 0.0 |
Number of stores (Optical)
– Wholly-owned | 134 | 139 | |||||||
– Franchised | 88 | 84 |
Number of stores (F&B)
– Wholly-owned | 17 | 16 | 15 Komugi retail outlet and 1 Hap&Pi Kiosk | ||||||
– Franchise | 20 | 23 |
Source: Company, Mercury Securities
(A Participating Organisation of Bursa Malaysia Securities Bhd.)
RESULTS NOTE
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