KUALA LUMPUR: Maybank Investment Bank (Maybank IB) has positive thoughts regarding Optimax Holdings Bhd's new high-margin plastic surgery division.
There is hope because of the increasing volume, which led to the opening of a second operating theatrer at its Atria Ambulatory Care Centers (ACC) facility in April of this year.
Two of the four operating rooms in this extension will be reserved, especially for plastic surgery treatment.
"We uphold our earnings projections for the fiscal years 2024, 2025, and 2026 (FY24/FY25/FY26), factoring in increased operational expenses and expansion initiatives," the investment bank said.
According to Maybank IB, Optimax has commenced operations at its satellite clinic in Taman Melawati, and plans are underway to open three additional ACCs in Cambodia, Atria (PJ), and Kota Kinabalu by March or April.
"These developments would bring the total number of ACCs to 16, along with 7 satellite clinics and 1 specialist centre by the first half of 2024 (1H24).
"It is anticipated that these launches will alleviate the strain on general practitioner (GP) and pre-tax margins, which were impacted by high preoperative costs related to the recruitment of medical staff and renovation expenses.
"However, it is expected that costs will gradually decrease, although there are still intentions to hire more doctors in preparation for future expansions," it added.
Additionally, Optimax anticipates the completion of construction for its Kempas Eye Hospital and Setia Alam Hospital by the second half of 2024 (2H24), with plans to commence operations by early 2025.
"We uphold our earnings projections, factoring in an estimated capital expenditure (capex) of over RM15 million for FY24, slightly exceeding management's guidance, to adopt a cautious approach," it added.
Maybank IB reaffirms its 'buy' recommendation for Optimax, keeping the target price unchanged at 86 sen.