Hong Leong Investment Bank Bhd (HLIB ) maintained its BUY call on Focus Point Holdings Bhd with a target price of RM0.89, citing resilient growth prospects from its optical business expansion and rising contribution from its food and beverage (F&B) segment.
HLIB said the company’s current valuation remains attractive, with FY26 and FY27 price-to-earnings ratios at 8.0 times and 7.4 times respectively.
The house also said that Focus Point’s dual-pronged growth strategy is supported by store expansion into lower-cost street-front locations, stronger corporate optical sales and the rollout of new F&B opportunities under its bakery chain Komugi.
The research house noted that Focus Point is targeting 20 new outlets this year, with around 40% already completed, as part of its longer-term goal of reaching 300 outlets by 2030 from about 210 currently. It added that selected prime locations have achieved payback periods of less than one year, while street-front outlets offer lower rental costs compared with mall-based stores, helping to improve margins.
Beyond its optical segment, HLIB highlighted growing opportunities from Focus Point’s F&B business, including supplying pastry products through a Chinese coffee chain in Malaysia, with discussions for expansion into Singapore at an advanced stage. Corporate optical sales also recorded strong growth, rising about 60% year-on-year in FY25, although it still contributes less than 20% of optical revenue, indicating further expansion potential.
HLIB said upcoming catalysts include the launch of Ray-Ban Meta smart glasses in October, new convenience store supply partnerships and potential benefits from Visit Malaysia Year 2026 for tourist-focused outlets such as KLCC, Pavilion Kuala Lumpur and South Quay.
As of 10.10 am, the stock price is flat at RM0.51.
