Asean Research
Compliant
Focus Point Sustainable Growth Ahead; Keep BUY
Consumer Cyclical | Consumer Products
Target Price (Return): MYR0.74 (35.8%)
Price (Market Cap): MYR0.55 (USD79.5m)
ESG score: 2.9 (out of 4)
Avg Daily Turnover (MYR/USD): 0.11m/0.03m
Buy (Maintained)
Analysts
Tai Yu Jie
+603 2302 8132
tai.yu.jie@rhbgroup.com
Soong Wei Siang
+603 2302 8130
soong.wei.siang@rhbgroup.com
Summary
- Keep BUY, MYR0.74 TP (adjusted post bonus issue), 36% upside and c.6% FY26F (Jun) yield. Focus Point’s 1H25 results met expectations. We believe growth momentum is sustainable, supported by higher volumes from store expansion, effective marketing initiatives, increasing optical corporate sales, and continued GPM expansion. The stock is trading at a single-digit valuation and remains the cheapest among consumer retailers under our coverage, which we see as unwarranted given its market leadership and consistent record of outperforming the broader retail sector.
- Within expectations. 1H25 core profit of MYR16.6m (+4.5% YoY) met 46% and 44% of our and consensus full-year forecasts. The results are in line with expectations, as we expect a stronger 2H25 due to seasonal factors.
- Results review. YoY, 1H25 revenue grew 4.9% to MYR145.7m, mainly driven by growth in the optical segment (+5.3%) from store expansion (five owned and one franchised stores) and SSSG of less than 5%. 1H25 GPM expanded 1.9ppts YoY to 67.2%, supported by stronger bargaining power from higher volumes. Consequently, 1H25 PBT rose 3.4% YoY to MYR22.1m, with stronger optical performance (+16.1%) offset by the F&B segment, which slipped back into a loss of MYR1.6m (vs 1H24 PBT: MYR0.6m) due to cautious consumer sentiment and rising opex. QoQ, 2Q25 revenue was flattish at MYR72.8m (-0.2%) on less aggressive price promotions, but improved GPM (+1.3ppts to 67.8%) lifted core profit 12% QoQ to MYR8.8m.
- Outlook. Focus Point is well-positioned to capture the rising myopic population, leveraging its market leadership and strong brand equity. The group will continue to drive effective marketing initiatives and expand into East Malaysia – where competition is relatively limited – to further grow market share. Corporate sales (7% of optical revenue) are also expected to sustain strong growth (1H25: +>70% YoY), supported by rising demand from employers offering optical benefits to attract and retain talent. With higher sales volumes and stronger bargaining power, GPM expansion should be sustainable to offset the rising opex environment. In the F&B segment, management is in discussions to secure new business and ramp up central kitchen utilisation, while Komugi’s expansion will remain prudent amid subdued consumer sentiment.
- Forecast and ratings. Post results, we maintain our earnings forecasts with a DCF-derived MYR0.74 TP (includes a 2% ESG discount), which implies 11.4x FY26F P/E, or +1SD from the mean. This is in line with the valuation ascribed to other consumer retail stocks under our coverage.
- Key downside risks: Major delays in expansion plans and a loss of key corporate customers in the F&B segment.
Share Performance (%)
| YTD | 1m | 3m | 6m | 12m | |
|---|---|---|---|---|---|
| Absolute | (9.8) | (0.6) | (7.5) | (7.5) | (8.6) |
| Relative | (6.6) | (4.8) | (9.7) | (8.1) | (5.0) |
52-wk Price low/high (MYR) 0.53-0.63
FOCUSP MK (FOCUSP MK) Price Chart (Textual Representation)
A hypothetical price chart showing “Price Close” and “Relative to FBM KLCI (RHS)” over time from Aug-24 to Aug-25, with price range from 0.52 to 0.64 on the left axis and relative index from 95 to 112 on the right axis. The trend shows fluctuations but generally remains within the 0.52-0.64 range for price and 95-112 for relative index.
Source: Bloomberg
Forecasts and Valuation
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total turnover (MYRm) | 261 | 293 | 327 | 356 | 384 |
| Recurring net profit (MYRm) | 33 | 33 | 36 | 40 | 44 |
| Recurring net profit growth (%) | (9.2) | 1.5 | 7.9 | 11.5 | 9.4 |
| Recurring P/E (x) | 10.25 | 10.10 | 9.36 | 8.40 | 7.68 |
| P/B (x) | 2.8 | 2.5 | 2.2 | 1.9 | 1.7 |
| P/CF (x) | 5.45 | 5.16 | 3.88 | 3.45 | 2.92 |
| Dividend Yield (%) | 5.5 | 6.4 | 5.3 | 6.0 | 6.5 |
| EV/EBITDA (x) | 3.62 | 3.55 | 3.35 | 2.69 | 2.14 |
| Return on average equity (%) | 27.4 | 26.2 | 24.9 | 24.5 | 23.8 |
| Net debt to equity (%) | net cash | net cash | net cash | net cash | net cash |
Overall ESG Score: 2.9 (out of 4)
E Score: 2.3 (GOOD)
S Score: 4.0 (EXCELLENT)
G Score: 3.0 (GOOD)
Note:
Please refer to the ESG analysis on the next page
Small cap stocks are defined as companies with a market capitalisation of less than USD0.5bn.
Source: Company data, RHB
See important disclosures at the end of this report
Emissions And ESG
Trend analysis
| Emissions (tCO2e) | Dec-22 | Dec-23 | Dec-24 | Dec-25 |
|---|---|---|---|---|
| Scope 1 | 210 | 226 | ||
| Scope 2 | 1,697 | 1,853 | ||
| Scope 3 | 1,174 | |||
| Total emissions | na | 1,907 | 3,253 | na |
Source: Company data, RHB
Latest ESG-Related Developments
By expanding the scope of carbon emissions reporting to include Scope 3 and enhancing data tracking, Focus Point is taking a holistic approach to understanding the environmental impact.
This reflects its ongoing commitment to transparency and its belief that even small, consistent actions whether in reducing energy usage, or refining travel and commuting practices can lead to meaningful, lasting change.
ESG Unbundled
Last Updated: 23 May 2025
In response to decarbonisation efforts and a commitment to a net-zero economy, the group has enhanced energy efficiency and reduced its carbon footprint. The group has started disclosing emission data for FY23.
The group prioritises employee health and safety to minimise work-related accidents. It upholds human rights, supports talent development, and promotes diversity and inclusion. FPHB’s foundation conducts charitable initiatives and provides vision screening and eyewear to students in need.
FPHB maintains strong corporate governance with policies including equal opportunity, anti-bribery, personal data protection, and a code of conduct. It adheres to the Malaysian Code on Corporate Governance (MCCG), with a Board comprising 50% independent directors and meeting the 30% women directors recommendation.
ESG Rating History (Textual Representation)
A visual representation of ESG rating history from Aug-23 to Aug-25, showing ratings of 2.8, 2.9, 2.9, 2.9, 2.9, 2.9. The rating appears to be stable around 2.9 after an initial 2.8.
Source: RHB
See important disclosures at the end of this report
Financial Exhibits
Financial summary (MYR)
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Recurring EPS | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 |
| DPS | 0.03 | 0.04 | 0.03 | 0.03 | 0.04 |
| BVPS | 0.19 | 0.22 | 0.25 | 0.28 | 0.32 |
| Return on average equity (%) | 27.4 | 26.2 | 24.9 | 24.5 | 23.8 |
Valuation metrics
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Recurring P/E (x) | 10.25 | 10.10 | 9.36 | 8.40 | 7.68 |
| P/B (x) | 2.8 | 2.5 | 2.2 | 1.9 | 1.7 |
| FCF Yield (%) | 16.0 | 15.2 | 19.8 | 23.0 | 26.8 |
| Dividend Yield (%) | 5.5 | 6.4 | 5.3 | 6.0 | 6.5 |
| EV/EBITDA (x) | 3.62 | 3.55 | 3.35 | 2.69 | 2.14 |
| EV/EBIT (x) | 6.99 | 6.88 | 6.34 | 5.54 | 4.77 |
Income statement (MYRm)
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total turnover | 261 | 293 | 327 | 356 | 384 |
| Gross profit | 169 | 187 | 214 | 232 | 250 |
| EBITDA | 91 | 94 | 98 | 117 | 136 |
| Depreciation and amortisation | (44) | (45) | (46) | (60) | (75) |
| Operating profit | 47 | 48 | 52 | 57 | 61 |
| Net interest | (5) | (5) | (5) | (4) | (3) |
| Pre-tax profit | 40 | 44 | 47 | 53 | 58 |
| Taxation | (10) | (11) | (11) | (13) | (14) |
| Reported net profit | 30 | 33 | 36 | 40 | 44 |
| Recurring net profit | 33 | 33 | 36 | 40 | 44 |
Cash flow (MYRm)
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Change in working capital | (15.7) | (16.8) | (0.2) | (7.4) | (6.9) |
| Cash flow from operations | 61.6 | 65.1 | 86.6 | 97.3 | 115.0 |
| Capex | (7.9) | (14.2) | (20.0) | (20.0) | (25.0) |
| Cash flow from investing activities | 1.1 | (9.1) | (20.0) | (20.0) | (25.0) |
| Dividends paid | (13.9) | (16.2) | (17.9) | (20.0) | (21.9) |
| Cash flow from financing activities | (64.7) | (54.0) | (63.3) | (64.2) | (65.2) |
| Cash at beginning of period | 54.0 | 39.4 | 38.5 | 41.8 | 54.9 |
| Net change in cash | (2.0) | 2.0 | 3.3 | 13.1 | 24.7 |
| Ending balance cash | 51.9 | 41.4 | 41.8 | 54.9 | 79.6 |
Balance sheet (MYRm)
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Total cash and equivalents | 39 | 39 | 42 | 55 | 80 |
| Tangible fixed assets | 137 | 144 | 158 | 157 | 148 |
| Total investments | 3 | 1 | 1 | 1 | 1 |
| Total assets | 283 | 288 | 315 | 338 | 362 |
| Short-term debt | 18 | 18 | 18 | 18 | 18 |
| Total long-term debt | 17 | 17 | 17 | 17 | 17 |
| Total liabilities | 165 | 153 | 162 | 165 | 167 |
| Total equity | 118 | 135 | 153 | 173 | 195 |
| Total liabilities & equity | 283 | 288 | 315 | 338 | 362 |
Key metrics
| Dec-23 | Dec-24 | Dec-25F | Dec-26F | Dec-27F | |
|---|---|---|---|---|---|
| Revenue growth (%) | 4.9 | 12.1 | 11.8 | 8.9 | 7.9 |
| Recurrent EPS growth (%) | (9.2) | 1.5 | 7.9 | 11.5 | 9.4 |
| Gross margin (%) | 64.9 | 63.8 | 65.3 | 65.1 | 65.1 |
| Operating EBITDA margin (%) | 34.8 | 32.0 | 30.0 | 33.0 | 35.4 |
| Net profit margin (%) | 11.6 | 11.3 | 11.0 | 11.2 | 11.4 |
| Dividend payout ratio (%) | 61.3 | 65.0 | 50.0 | 50.0 | 50.0 |
| Capex/sales (%) | 3.0 | 4.9 | 6.1 | 5.6 | 6.5 |
| Interest cover (x) | 7.65 | 7.54 | 8.06 | 8.84 | 9.47 |
Source: Company data, RHB
See important disclosures at the end of this report
Results At a Glance
Figure 1: Earnings review
| FYE Dec (MYRm) | 2Q24 | 1Q25 | 2Q25 | QoQ (%) | YoY (%) | 1H24 | 1H25 | YoY (%) | Comments |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | |||||||||
| Optical and related products | 58.7 | 61.1 | 60.6 | (0.7) | 3.3 | 115.5 | 121.7 | 5.3 | Store expansion and solid SSSG |
| 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) | |
| Total | 70.6 | 72.9 | 72.8 | (0.2) | 3.1 | 138.9 | 145.7 | 4.9 | |
| PBT | |||||||||
| Optical and related products | 11.0 | 11.6 | 12.6 | 8.6 | 14.9 | 20.9 | 24.2 | 16.1 | Supported by solid sales momentum and GPM expansion |
| Food and beverage | 0.7 | (0.7) | (0.8) | N.m. | N.m. | 0.6 | (1.6) | N.m. | Slipped into loss on cautious consumer sentiment and rising opex environment |
| Others | (0.3) | (0.2) | (0.3) | 25.1 | 3.4 | (0.1) | (0.5) | 972.5 | |
| Total | 11.4 | 10.6 | 11.5 | 0.1 | 0.0 | 21.4 | 22.1 | 3.4 | |
| PBT margin | |||||||||
| Optical and related products | 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) | |
| Total | 16.1 | 14.6 | 15.8 | 1.2 | (0.3) | 15.4 | 15.2 | (0.2) | |
Source: Company data, RHB
See important disclosures at the end of this report
DCF Valuation
Figure 3: DCF valuation
| FYE Dec | FY26F | FY27F | FY28F | FY29F | FY30F | FY31F | FY32F | FY33F | FY34F | FY35F |
|---|---|---|---|---|---|---|---|---|---|---|
| EBIT | 57 | 61 | 65 | 68 | 72 | 75 | 78 | 80 | 82 | 85 |
| EBIT*(1-tax rate) | 44 | 47 | 50 | 52 | 54 | 55 | 56 | 57 | 58 | 58 |
| Add: D&A | 4 | 4 | 5 | 5 | 6 | 6 | 7 | 8 | 9 | 10 |
| Less: WC investments (WC Inv) | -7 | -7 | -7 | -7 | -8 | -8 | -9 | -9 | -10 | -10 |
| Less: Fixed investments (FC Inv) | -20 | -25 | -25 | -30 | -30 | -35 | -35 | -35 | -35 | -35 |
| FCFF | 21 | 19 | 22 | 19 | 21 | 18 | 20 | 21 | 22 | 23 |
| Disc. FCFF | 20 | 17 | 19 | 16 | 16 | 13 | 14 | 14 | 14 | 13 |
| Terminal value at T=10 | 516 | |||||||||
| PV of terminal value | 304 | |||||||||
| NPV | 156 | |||||||||
| Less Debt | 4 | |||||||||
| Less Minority Interest | 0 | |||||||||
| Equity Value of Firm | 465 | |||||||||
| ESG premium/discount | -2% | |||||||||
| Target Price per share | 0.74 | |||||||||
| Implied FY26F P/E | 11.4% |
Rf4.0%
Beta0.2
Risk premium7.7%
Rm11.7%
TG (%)1.0%
CoE5.7%
CoD4.0%
WACC5.4%
Source: RHB
Recommendation Chart (Textual Representation)
A hypothetical recommendation chart showing “Price Close” and “Recommendations & Target Price” over time from Aug-20 to Feb-25. The chart indicates various “Buy” recommendations with target prices (e.g., 0.99, 1.05, 1.20, 1.12, 1.02) and corresponding prices (e.g., 0.56, 0.59, 0.60, 0.61, 0.57, 0.52). There’s also one “Not Rated” entry at 0.41.
Source: RHB, Bloomberg
Recommendation Chart Table
| Date | Recommendation | Target Price | Price |
|---|---|---|---|
| 2025-08-07 | Buy | 0.99 | 0.56 |
| 2025-05-26 | Buy | 1.05 | 0.59 |
| 2025-02-26 | Buy | 1.05 | 0.56 |
| 2025-02-26 | Buy | 1.05 | 0.56 |
| 2024-08-23 | Buy | 1.20 | 0.60 |
| 2024-08-22 | Buy | 1.20 | 0.60 |
| 2024-05-24 | Buy | 1.12 | 0.61 |
| 2024-02-23 | Buy | 1.02 | 0.57 |
| 2024-02-07 | Buy | 1.02 | 0.52 |
| 2021-10-29 | Not Rated | na | 0.41 |
Source: RHB, Bloomberg
See important disclosures at the end of this report
RHB Guide to Investment Ratings
Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage
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