Optimax Bhd (OPTIMAX)’s core net profit came in at RM3.8m, bringing the 6MFY23 core net profit to RM6.9m. 1H is likely to be weaker due to lesser business days coupled with festive season, which may result in lower surgeries done.
“Revenue grew 6.9% to RM27.9m, while the core net profit rose 25.3% mainly due to 2Q23 having more business days and people tend to defer their surgeries until after the festive period,” said Malacca Securities in the recent Stock Digest.
Despite some ad-hoc public holidays being declared by the government and the festive season in April, the growth momentum gradually normalised in May-Jun 2023.
As compared to 2Q22, the core net profit dropped 16.6% mainly due to increased in operating cost (additional staff hired in advance for the upcoming expansion of new ambulatory care centres and satellite clinics/centres at the new location), increase in depreciation expenses and preoperative costs (consultancy and professional costs) were incurred at the Cambodia ambulatory care centre.
“We are cautiously optimistic on OPTIMAX’s 2H outlook driven by the increase in demand and awareness from both the local and foreign patients that are more health conscious,” said Malacca Securities.
Also, the regional expansion into Cambodia may provide potential valuable opportunities within the SEA region. Meanwhile, the recent announcement on OPTIMAX securing licence to offer plastic surgery and aesthetic services will be a boon for overall revenue and earnings beyond FY23.
“Our last recommendation on OPTIMAX was Buy with a fair value of RM1.15,” said Malacca Securities.
