Optimax expects to see more customers opting for eye surgery

KUALA LUMPUR: Specialist Ophthalmology Service Provider Optimax Holdings Bhd is expected to experience healthy growth in the first quarter ended March 31, 2022 (1Q21) and 2Q22 as it accelerates its network expansion.

Following a briefing between CGS-CIMB Research and its senior management, the research house learned that the number of surgeries performed in 1Q22 was 10% higher year-over-year, equating to more than 2,000 surgeries performed.

This is due to pent-up demand following movement control orders last year, which may have caused the affluent segment of society to divert spending to eye surgeries, he said.

“Advanced appointments for surgeries are also at healthy levels,” he added.

Additionally, CGS-CIMB Research said Optimax’s Ambulatory Care Center (ACC) in Bahau is set to open in 2Q22, while its satellite clinic in Johor Baru will open soon after approval from the Ministry of Health. health.

“It has accelerated its goal of deploying new satellite clinics. It may also open a new ACC in Kuantan next year,” he noted.

Meanwhile, CGS-CIMB Research estimated that the group generated revenue of RM280,000 from the administration of the Covid-19 vaccine in 1Q22 based on 20,000 doses and an administration fee of RM14 per dose, which is lower than its previously assumed RM4mil for the fiscal year ending December 31. , forecasts for 2022 (financial year 22).

However, the research house expected higher payroll costs, up 9% year-on-year in FY22, as the group may hire four to five new doctors and support workers for its new centers.

“But the company has not experienced major cost pressures for key inputs such as lenses, consumables, although their shipments may be slightly delayed,” said CGS-CIMB Research.

CGS-CIMB Research maintains an “extra” call on Optimax with a slightly higher target price of RM1.55, pegged to 28 times the price-earnings ratio based on calendar year 2023.