4th February 2026,
Hong Leong Investment Bank Bhd (HLIB) has maintained a BUY call on Focus Point Bhd with a target price of RM0.83, signalling a 71.1% capital upside from its current market price of RM0.485.
The research house highlighted that the group is well positioned for a strong fourth-quarter 2025, supported by seasonal strength and incremental demand from corporate optical sales, as well as spill-over upgrades from employees’ family members.
According to HLIB, the optical segment is set to benefit from Visit Malaysia 2026, with Chinese tourists forming a meaningful customer base, especially for sunglasses.
The company plans to open around 15 new self-operated optical outlets and five franchise stores this year, with selected prime locations achieving payback periods of less than one year.
Margins are expected to rise by one to two percentage points, aided by Luxottica price increases that have yet to be fully passed to consumers and savings from the reduction in SST on rental.
The F&B segment faces near-term competitive pressures, but diversification efforts are underway.
Focus Point will introduce nine SKUs across approximately 100 convenience store outlets and expand Komugi with one to two new outlets in FY26.
Central kitchen utilisation, currently at around 50%, is expected to rise to 70% as new clients are onboarded.
Export readiness, particularly for Singapore, is enhanced by Komugi’s FSSC certification.
HLIB also noted the group’s healthy balance sheet, strong free cash flow generation, and net cash position, enabling both growth investments and shareholder returns.
The dividend policy is set to shift from semi-annual to quarterly payments, maintaining distributions above the stated 30% payout.
Focus Point’s inclusion in the FTSE4Good Index, FTSE4Good Shariah Index, and Bursa Malaysia Quality 50 Index reflects its solid ESG credentials.
HLIB maintained forecasts for FY25 and reiterated the BUY call, citing the scalable business model and expected continued growth across both optical and F&B segments, underpinned by the popularity of the Komugi brand.
As of 11.21 am, the stock price was noted at RM0.485.
Source: Business Today
Full Article: https://www.businesstoday.com.my/2026/02/04/focus-point-eyeing-vm2026-tourist-surge-to-sunny-malaysia/
