Optimax Holdings (Optimax) recorded a 12.5% YoY increase in its 3QFY24 core net profit to RM3.2m, driven by effective marketing initiatives through online platforms and contributions from its newly established satellite clinics and centres. The results were slightly below market expectations at 69% while came in within our expectations at 73% of full-year forecasts. Optimax's 3QFY24 revenue rose by 16% YoY to RM33.1m, driven by a higher number of cataract and implant vision correction surgeries. Additionally, Cambodia's revenue surged over twofold QoQ to RM0.8m, albeit accounting for only 2.4% of the Group's total revenue in 3QFY24. We are optimistic that the Group will be able to expand its customer base through sustained marketing efforts. We remain our FY24F-26F earnings forecasts and reiterate our Outperform call on Optimax, with an unchanged TP of RM0.83, based on a 27x PER applied to FY25F EPS of 3.1 sen. On a side note, Optimax declared an interim single-tier dividend of 0.8sen per share.

• Revenue. Optimax's revenue grew 16% YoY to RM33.1m in 3QFY24 primarily supported by an increase in cataract and implant vision correction surgeries. Meanwhile, Cambodia's operations recorded a significant revenue growth of over twofold QoQ to RM0.8m, accounting for 2.4% of the Group's total revenue in 3QFY24. Optimax's overall utilisation rate remained at 60-65% (2QFY24: 60%) mainly due to the opening of 6 new OTs at Atria, Kota Kinabalu and Cambodia.
• Net profit. Optimax recorded a 12.5% YoY increase in its 3QFY24 core net profit to RM3.2m, primarily due to the effective marketing initiatives, including ongoing online promotions and contributions from newly established satellite clinics. However, PBT grew marginally by 0.2% YoY, mainly due to higher operating costs from newly licensed ACCs and satellite clinics, including pre-operational staff expenses and depreciation expenses.
• Outlook. We remain optimistic on Optimax's growth prospects, supported by the Group's strategic expansion of ACCs and satellite clinics across Malaysia. The Group's commitment in optimising operational costs and implementing a targeted marketing campaign further strengthens its position in the market. Additionally, Optimax's ongoing innovation with advanced technologies, such as the PRESBYOND procedure for presbyopia, addresses the evolving needs of an ageing population. The Group is also expanding its paediatric eye care services, recognizing the increasing demand for early intervention in children's eye health. With these efforts, Optimax is well-positioned to capitalize on the growing demand for healthcare services, and we are confident in the Group's ability to continue meeting the needs of its diverse patient base.

Source: PublicInvest Research - 28 Nov 2024