Petaling Jaya, 8 January 2024,
Focus Point Holdings Bhd
is set to benefit from rising travel demand, a turnaround in its food and beverage (F&B) business and growing optical contribution.
TA Research remained upbeat on Focus Point’s prospects premising on higher F&B contribution, launch of a new frozen yoghurt brand, expansion of new optical outlets, and higher tourist arrivals. “We are positive on the company’s concerted effort in driving F&B contribution, which we expect to grow to 25% from 16% over the coming two years,” it said.
Focus Point will open two to three new Komugi outlets in the Klang Valley to add to its current 12 outlets in the Klang Valley and one in Negri Sembilan.
It ventured into the F&B industry in 2012 via Komugi, a premium Japanese bakery, which is contributing to 46% of F&B sales.
In addition, Focus Point has also started supplying pastry products to large corporate customers, including supermarkets, convenience stores, airlines and coffee-chains, which made up the remaining 54% of its F&B revenue. The company will also launch a new brand concept, focusing on frozen yogurt with the first outlet to be opened at Mid-Valley Megamall in the first quarter of 2024 (1Q24).
“We understand that pricing will be about 20% lower than llaollao while margins will be higher than its bakery business due to lower wastages,” it said.
The research house said its eyewear business would remain resilient as people are spending more time on gadgets and the prevalence of myopia among Malaysians.
Focus Point targets to open 10 to 12 optical outlets this year and expects to grab some market share from those mom-and-pop shops via its recently launched Focus Point Sightsavers programme.It aimed to convert street shop optical outlets, introducing the new image about its eyewear profession to smaller second and third-tier cities such as Muar and Taiping.
Moreover, the growth in retail sales will come from marketing and awareness activities such as the World Sight Day roadshow and 360° Advanced Primary Eye Care campaign.
Meanwhile, the increase in tourist arrivals is expected to boost sales of its eye care centres and food outlets, according to the research house.
Focus Point has about 20 outlets in Johor, benefiting from rise in Singaporean travellers, while outlets at tourist hotspots will be key growth drivers.
Overall, the company aimed to achieve some 10% growth in optical sales this year.
TA Research has maintained its financial year 2023 (FY23) and FY25 earnings projections for Focus Point and is optimistic that 4Q23 sales will be a new record high due to the festive period.
It said the company’s 4Q23 net profit would improve to between RM11mil and RM13mil compared with RM6.4mil in 3Q23.
Source: The Star
Full Article: https://www.thestar.com.my/business/business-news/2024/01/08/focus-point-sets-its-sights-on-rising-travel-demand-fb-operations
