not vested
On stock selection, we believe a 40% plunge from YTD high of RM0.77 (21 Feb) to RM0.465 yesterday has made Focusp’s (owns and operates eye care centres and F&B business i.e. café and bakery business under the brand name of “Komugi” and third party sales) valuation attractive again (9.3x FY21E P/E with 4.3% DY).
Despite anticipating a weak 2Q20 results due to extended MCO, we expect a better 2H20 following its pivot to e-commerce and cost savings from rental waivers and reduction in staff cost coupled with the expanding F&B sales to Family Mart and other food outlets (Sushi King, Secret Recipe) and potential entry of new clients.
Technically, Focusp has successfully staging a LT downtrend line breakaout with high volume yesterday.
Given the widening upper Bollinger band, the stock is poised for a further upside to retest RM0.50-0.52-0.55 levels in the near term.
Key supports are near RM0.43-0.42-0.40. Cut loss at RM0.39.
Source: HLIB