Malacca Securities Sdn Bhd has maintained a “Buy Recommendation “on Optimax Holdings Bhd with a higher target price of RM1.80 (from RM1.63) after rolling over our valuation metrics to FY22f. Its target price is based on the assigned target PER of 40.0x to our FY22f EPS of 4.5 sen.
It said that given the reported earnings came in above our expectations, “we raised our earnings forecast by 52.1% and 10.0% to RM11.1m and RM12.1m respectively for FY21f and FY22f to account for the new revenue stream contributed from PICK and MyMedic@Wilayah, more surgeries conducted amid easing of restrictions as well as the higher-margin arising from a better control of operating costs.”
The stock-broking house said that it believes the new revenue stream from PICK and MyMedic@Wilayah will contribute positively to the group, especially after the rollout of Covid-19 booster vaccination shots, but the contribution may be lower than that in 3Q21 as the booster Covid-19 doses were not mandatory.
It said that being committed to its ACC network expansion plan, Optimax had identified a potential ACC location at Bahau, Negeri Sembilan and expected the renovation works to be completed by 1Q22.
Besides, the group continues its effort in extending its geographical coverage by looking out for potential expansion towards the East Coast and Sabah, as well as setting up satellite clinics to reach remote areas.
