PETALING JAYA: Optimax Holdings Bhd

new capacity and core ophthalmology services will be earnings drivers despite headcount cost pressures as a result of its business expansion, analysts say.

The company currently has 15 ambulatory care centres (ACCs), eight satellite clinics and one specialist hospital in the country and a newly opened ACC in Cambodia and remains on an expansion path.

It is building new hospitals in Kempas, Johor, and Shah Alam, which are due to start operations by the first half of next year according to Phillip Research.

Optimax anticipates these hospitals to achieve earnings before interest, taxes, depreciation and amortisation (Ebitda) breakeven within a year of operations.

Its three new ACCs in Cambodia, Atria Damasara Jaya, and Kota Kinabalu commenced operations in third quarter of last year (3Q24) and have made encouraging progress, with Atria and Cambodia reaching pretax profit breakeven and Kota Kinabalu achieving Ebitda breakeven according to the research house.

Phillip Research noted Optimax’s overall utilisation level stands at about 60%, with higher utilisation observed at its key flagship and urban centres, but management aims to achieve a group utilisation level of between 70% and 75% by next year supported by targeted digital marketing efforts.

Another earnings driver for Optimax is its Zeiss Smile Pro treatment which has significant potential for medical tourism due to cost advantages.

“We see refractive surgeries as a key earnings driver for Optimax, offering higher revenue intensity than cataract surgeries, which are capped by Health Ministry regulated pricing. Refractive procedures also offer greater scalability, driven by faster treatment durations,” Phillip Research noted.

It added that operating expenses at Optimax would remain elevated in the near term as it ramps up staffing in anticipation of upcoming capacity additions.

The research house said the potential for Optimax is good as Malaysia’s ophthalmology sector remains structurally underserved, with just 13 ophthalmologists per million population, substantially below the global average of about 30.

“This shortage points to systemic undercapacity in the local vision care sector, creating structural opportunities for private providers such as Optimax to scale,” the research house said.

Phillip Research expects Optimax to post stronger core earnings of between RM4.5 and RM5mil in 2Q25 underpinned by growing patient volume, increased foot traffic at newer ACCs and continued momentum from the targeted digital outreach strategy.

“We forecast Optimax’s revenue to grow by between 8% and 11% from this year to 2027, supported by ongoing facility expansion and rising surgical volumes. In tandem, we project core earnings growth of between 8% to 35% driven by improved operating leverage,” the research house said.

Phillip Research maintained a “buy” rating on Optimax with 12-month target price of 70 sen based on a 19 times price earnings multiple on 2026 earning per share of 3.7 sen.