TopVision Eye Specialist Bhd (TOPVISN, 0332) is scheduled to transfer its listing to the Bursa Ace Market on 16 December 2024. The company is primarily involved in medical eye care services, operating through 11 ambulatory care centres (ACCs) across Malaysia, offering services ranging from general eye care to advanced vitreoretinal surgeries. We expect TOPVISN to register core net earnings of RM5.7m and RM6.4m for FY25F and FY26F respectively. BUY with a fair value of RM0.42, premised on a weighted average 25x PER (in-line with sector average) on FY25F EPS.

TOPVISN will utilise RM7.9m from the IPO proceeds to establish a multidisciplinary eye specialist centre, TOPVISION International in Petaling Jaya. This advanced facility will introduce sub-specialty services such as corneal transplants, LASIK, and vitreoretinal surgeries, targeting both local and international medical tourists, particularly from Indonesia. With an operational capacity to serve 1,900 patients annually and situated in a highly accessible urban hub, this expansion positions TOPVISN to capitalize on the growing demand for premium eye care services.

Expanding its footprint into underserved regions, TOPVISN is allocating RM5.0m from the IPO proceeds and RM1.4m from internally generated funds to establish 2 additional ACCs in Kuala Terengganu and Tawau. These centres will enhance the Group’s reach across Peninsular Malaysia and East Malaysia. The move will improve access to specialized eye care services while strengthening brand recognition and market presence in these potentially high-growth areas.

The acquisition of 2 new phacoemulsification machines to replace the older ones will enhance operational efficiency and clients’ satisfaction. This upgrade reflects the company’s commitment to deliver high-quality eye care services with advanced technology.

Hence, we project a FY24E-FY26F earnings CAGR of 7.1%, driven by: (i) expansion of medical facilities and reach, (ii) introduction of advanced sub-specialty services, and (iii) advancement in technology. With a strong balance sheet of net cash position, TOPVISN is well-placed to sustain its financial strength and drive long-term growth post-listing.

Source: Rakuten Research - 6 Dec 2024

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