Positive outlook ahead. HLIB Research maintains a BUY rating with TP of RM0.88, ascribing 16x P/E on FY21 EPS (+42% upside). FOCUSP’s risk-reward profile remains attractive amid undemanding 11.3x FY21 PE (45% lower than industry), robust FY20- 22 EPS of 33% and decent DY of 3.2%. Despite the CMCO 2.0, we remain sanguine on FOCUSP, encouraged by increasing F&B corporate sales and securing a 2 nd central kitchen should see the profitability of the F&B division accelerate. Furthermore, we reckon the possibility of securing new F&B corporate clients is likely given the popularity of their current product offerings.

Pending a bullish Cup & Handle (C&H) formation. The C&H pattern formation is considered a bullish continuation pattern that marks a consolidation period followed by a breakout. After locking in a month long sideways consolidation within the RM0.545- 0.645 band, FOCUSP is likely to break the RM0.645 handle resistance soon. A decisive breakout could spur prices higher towards the RM0.70 psychological barrier before heading towards our LT objective at RM0.77 (all-time high on 21 Feb). Key supports are situated at RM0.60 and RM0.575 (30D SMA). Cut loss at RM0.55.