KUALA LUMPUR: Eye specialist services provider Optimax Holdings Bhd is expected to have a healthy growth in the first quarter ended March 31, 2022 (1Q21) and 2Q22 as it ramps up its network expansion.

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

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

       “Forward appointments for surgeries are also at healthy levels,” it added.

       Furthermore, CGS-CIMB Research said Optimax’s Bahau ambulatory care centre (ACC) is on track to open in 2Q22 while its satellite clinic in Johor Baru will open soon upon the approval from the Health Ministry.

       “It has ramped up its rollout target of new satellite clinics. It could also open a new ACC in Kuantan next year,” it noted.

       Meanwhile, CGS-CIMB Research estimated that the group generated RM280,000 revenue from Covid-19 vaccine administration in 1Q22 based on 20,000 doses and administration fee of RM14 per dose, which is tracking below its previously assumed RM4mil for the financial year ending Dec 31, 2022 (FY22) forecast.

       However, the research house anticipated higher employee cost, rising 9% year-on-year in FY22 forecast as the group would potentially hire four to five new doctors and support workers for its new centres.

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

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