HLIB Head of Retail Research cum Senior Chartist Ng Jun Sheng provides technical reading on Focus Point, see below :

Focus Point (RM0.78) - Gaining Traction

Signs of bottoming up following the piercing line candlesticks and a close above the 200D MA at 0.76. 

A successful breakout above 0.81 (mid Bollinger Band) will lift the stock to revisit 0.85-0.88-0.92 range.

Entry:
0.73-0.76-0.78

Resistance :
RM0.81-0.85-0.92

As highlighted previously, the group will release 2QFY24 results on 22 Aug. 

Expect strong sequential and YoY growth in 2QFY24. We estimate net profit could come close to RM8m in 2QFY24.

Growth is driven mainly by the strong optical division with the group's stepped up efforts in marketing (leveraging on Airdoc AI Technology in Focus Point stores, expanding corporate clients base and sightsavers outlets). 

This is further supported by the sustaining commendable F&B business with the resolution of foreign workers issue (easing cost pressure with attrition of foreign workers) and pick up in demand for its SKUs by its various major customers. 

Going forward, 2H24 prospects stay bright.

The much improved foreign tourists inflows in the Klang Valley and Johor help to lift demand for its optical products. 

This will further enhance its rebates from sale of optical products by its suppliers in 4Q.

With improving connectivity between Johor and Singapore, its optical business in Johor is very promising.

On F&B, the group expects commendable performances given indicated pick up in demand for SKUs by major customers. 

Syifaa's existing forecasts :
Core net EPS (sen)
FY24 e : 8.1
FY25 f : 8.9
FY26 f : 9.6

Syifaa's earnings could be a tad higher than managemt's guidance. 

However, judging from the commendable sales performance, believe the group is well positioned to achieve this forecast by Syifaa. 

Syifaa has a Buy call with TP of RM1.14 based on 14x FY25 PER. 

We remains upbeat on its prospects given its steady optical business while contribution from F&B segment is scaling up steadily.

With its well established businesses in both optics and F&B, it offers as good proxy play on consumer and healthcate sectors. 

With growing number of young children suffering from optics disorders, its optical business has much room to scale upwards.

Focus Point also offers a good proxy play on consumer spending in Johor given proximity to Singapore and improving accessibility between the two nations.

Source: Hong Leong Investment Bank Research - 12 Aug 2024