2021-08-24 03:09:46
Technical tracker - HLIB Retail Research – 24 August 2021FOCUSP (RM0.73-BUY rated) – The worst is likely over
Focus Point Holding Berhad (FOCUSP) is an investment holding company that mainly engages in the operation of professional eye care centres, trading of eyewear products and provision of food and beverage (F&B) services. The group F&B segment, which is viewed to be the key growth driver, operates two central kitchens (CK) together with F&B bakery chain “Komugi”.
After tumbling 25% from 52-week high of RM0.98 to RM0.73 yesterday, FOCUSP is trading at an undemanding 15.5x FY22E PE (32% discount against its peers’ average of 22.75), supported by a strong FY21-23 EPS CAGR of 19% and a decent 2.7%-3.0% FY21-23 DY. As more economic activities are allowed in Phase 1 states, we reckon the group F&B divisions will rebound strongly in anticipation of revenge spending activities. Going forward, F&B divisions will continue to chart impressive growth, underpinned by the aggressive expansion by its largest corporate client together with the high probability of additional 1 or 2 new stock keeping units (SKUs) launching on its Customer S outlets in the coming months.
HLIB reiterated a BUY rating on FOCUSP (TP:RM1.03), justified by (i) resilient business model in optical sales as it is viewed to be an essential purchase (ii) increasing F&B corporate sales and commencement of CK2 should see the profitability of the F&B division accelerate; (iii) high probability of securing new F&B corporate clients given the popularity of its current product offerings.
From a low of RM0.66 on 18 Aug, the stock staged a 10% rebound to end at RM0.73 yesterday, near the 23.6% FR. A strong breakout above this hurdle will spur the prices higher to RM 0.82 – RM 0.86 territory. Cut loss at RM 0.655.
Collection range: RM0.685-0.70-0.73
Upside targets: RM0.80-0.82-0.86
Cut: RM0.655
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