Latest news with #Optimax
The Star
29-07-2025
- Business
- The Star
Demand for vision care to bolster Optimax showing
Phillip Research expects Optimax to post stronger core earnings of between RM4.5 and RM5mil in 2Q25. 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.
The Sun
02-05-2025
- Business
- The Sun
Optimax sets sights on expanding operations in Cambodia, Indonesia and Vietnam
KUALA LUMPUR: Optimax Holdings Bhd aims to double its foreign patient revenue contribution to 20% by end-2025 as it scales up outreach in Cambodia, Indonesia and Vietnam. CEO Sandy Tan Sing Yee shared that the group's Cambodian operations, launched in May 2024, are already self-sustaining. 'Our doctors only fly in twice a month, but the numbers are quite good. Now our foreign revenue stands at about 10% overall,' she told SunBiz in an interview. Tan said there is a trust gap in Cambodian healthcare, which Optimax is addressing with high standards and modern facilities. 'To be honest, many Cambodians lack confidence in their local healthcare system. That is why air ambulance services are effective there. For instance, patients experiencing a heart attack frequently opt for direct flights to Bangkok or Singapore for their medical treatment,' she stated. She added that Optimax's entry into the Cambodian market has received strong response due to its modern facilities and adherence to international standards. 'When we first started as an eye centre, we built an operating theatre that meets Joint Commission International standards. This practice ensures that patients feel confident and reassured when coming in for surgery,' she said. According to Tan, Optimax currently holds an estimated 50% share of Cambodia's private eye care sector and is the sole Malaysian eye care provider there. 'Our patients are not just from Phnom Penh, but also from the outskirts, who come to see us,' she said. Tan said the group is exploring expansion beyond Phnom Penh, potentially into Siem Reap or other parts of Cambodia. 'Once our operating theatre reaches full utilisation and operates seven days a week, then we will proceed,' she said. At the same time, Optimax is ramping up roadshows and digital outreach in Indonesia and Vietnam to attract more international clients. 'We are going all out. In fact, we recently held a roadshow in Jakarta and managed to secure 100 patients for eye surgeries in Malaysia,' Tan said. At the same time, Optimax plans to maintain a consistent presence in Indonesia and Vietnam, with annual roadshows and marketing activities. 'Some of our team members are currently in Jakarta. We are building up more agents and strengthening our marketing team. We're actively running roadshows, events, radio campaigns, and digital marketing – not just to promote our services in Malaysia but also to raise awareness overseas,' Tan said. 'At the end of the day, we are in the service line. If we continue investing in international marketing, our foreign patient base will grow significantly,' she added. On the domestic front, Tan noted that Optimax is already well-established in Malaysia. 'Before the MCO, we were a 100% Malaysian-based company. I would say 99% of our patients were locals, with maybe just 1–2% being foreign patients, mainly from Medan due to our Penang presence. 'But today, that has changed. We now see many more foreign patients – not just Indonesians and Cambodians, but also those from China and Brunei. Medical tourism in Malaysia is definitely booming,' she said. On Malaysia's appeal as a medical tourism hub, Tan said the country offers high-quality care and facilities that rival the region's best. 'Our operating theatres are built to extremely high standards. The Ministry of Health has done a fantastic job setting those requirements.' Tan is optimistic about Optimax's new revenue streams, particularly its foray into aesthetic services. 'Our aesthetic clinic at Atrium Mall, which began operations in May last year, has shown promising numbers. Although still new, we have seen strong walk-in traffic and expect the centre to contribute solid revenue going forward,' she said. Meanwhile, Optimax is strengthening its position in the myopic control sector to address rising short-sightedness rates among children in Southeast Asia. 'We are converting most centres without operating theaters into myopic control centres,' said Tan. Alongside refractive surgery and cataract treatment, myopic control is now a standard offering across all 24 Optimax centres. Tan said the prevalence of myopia in Southeast Asia is alarmingly high, largely due to lifestyle and academic pressures. 'Whether in Singapore, Malaysia, Vietnam or Indonesia, we see the same trend, and that has contributed to Southeast Asia having the highest rates of myopia globally.' Tan said the rate of myopia in Asia is significantly higher than in Western countries, with recent studies indicating that up to 70% of the next generation in the region may be affected. 'It's a big difference compared to America. Our myopia rates are much higher. If you look at the latest data, it's very alarming.' She added that the region's growing reliance on digital tools is compounding the issue. The group is collaborating with MOH and the Ministry of Education to conduct school-based eye screenings. 'We've already developed the Optimax app so parents can monitor their child's condition annually. We're doing this across our network,' Tan said. The programme is rapidly expanding. 'We started with just 10 to 20 kids, but now we have 20,000 children coming in for annual check-ups. This shows the growing awareness and demand,' said Tan.
