Clear vision ahead for Focus Point's growth trajectory
In a note, the firm said the group plans to expand its optical segment into underserved areas in East Malaysia, with three new outlets slated for Karamunsing, Bintulu, and Miri.
On the food and beverage (F&B) front, it said while sales momentum persisted, the segment slipped back into the red due to elevated operating costs and soft corporate sales in February 2025 because of Ramadan.
"Nevertheless, management remains focused on improving cost efficiencies and enhancing scalability through greater business-to-business (B2B) contribution.
"Given Focus Point's strong brand presence, expanding footprint, and operational agility, we view it as a compelling proxy for rising consumer spending," it added.
Meanwhile, HLIB noted that Focus Point's optical division delivered a solid seven per cent year-on-year growth in the first quarter of 2025 (1Q25), underpinned by strong traction in both corporate and franchise sales.
It said this growth trajectory is set to continue, driven by robust brand equity and the group's store expansion strategy.
It noted that three new outlets were added in 1Q25, bringing the total to 202.
"Management is guiding for 10 new store openings in financial year 2025, with expansion focused on the Signature, SightSavers, Concept Store, and Anggun formats.
"We also see upside from the recent Medical Device Authority ban on online sales of optical devices and contact lenses, which is expected to redirect demand to brick-and-mortar channels," it added.
Furthermore, HLIB said Focus Point continues to reinforce its leadership in the optical space through strategic marketing.
It noted that the group's 360 Advanced Primary Eye Care campaign, offering free advanced eye screenings led by licensed optometrists, further enhances brand trust and customer conversion.
HLIB added that the group's F&B sales expanded by five per cent year-on-year thanks to positive contributions from retail.
Its Komugi retail arm saw healthy growth, supported by effective marketing activities with more engagement in social media and by key opinion leader influencers.
The group also recently secured a new corporate client to supply frozen Komugi products to a grocery retail chain with 30 outlets.
Management has revealed that negotiations are ongoing with several high-potential new clients, including national coffee chains and a convenience store operator.
"If these materialise, these partnerships could meaningfully boost capacity utilisation for the CK2 facility and lift profitability in the segment.
"Management expects B2B to emerge as the primary growth driver, while retail sales should remain stable," it said.
HLIB has maintained a "buy" call on Focus Point, with an unchanged target price of RM1.10.
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