Review

• Focus Point Holdings Berhad’s (FOCUSP) 1H24 Profit of RM15.8mn Was in Line With Expectations at 46.3% of Our Full-year Forecast and 43.8% of Consensus Earnings.

• QoQ, 2Q24 PBT Improved 13.4% to RM11.4mn. This Was Driven by Revenue Growth of 3.4% to RM70.6mn and Turnaround of the F&B Segment.

• 1H24 Revenue Rose by 13.2% to RM138.9mn, in Tandem With Higher PBT of 18.9% to RM21.4mn. We Attribute the Stronger Performance to Higher Sales Across All Segments. The Optical Segment Revenue and PBT Grew by 15.0% and 10.5% to RM113.9mn and RM19.5mn Respectively, Driven by Higher Demand for Optical Products.

• Meanwhile, the Food and Beverage Division Returned to Profitability, With a PBT of RM0.1mn as Compared to a LBT of RM1.0mn in 1H23. This Was Driven by Revenue Growth of 9.7% to RM20.8mn as Both Retail and Corporate Sales Grew Positively.

Impact

• No Change to Our FY24-26F Earnings Estimates.

Outlook

• Moving Into 2H24, We Expect Focus Point Performance to Improve on the Back of Opening of New Outlets in Strategic Locations. Management Targets to Open 8 Wholly-owned Outlets and 10 Sightsavers Franchise Outlets in 2024 (vs. Net Opening of 6 Outlets in 2023).

Valuation

• Maintain Our Buy Recommendation on the Stock With An Unchanged TP of RM1.11/share Based on 14.0x CY25 EPS.

Source: TA Research - 23 Aug 2024