KUALA LUMPUR (March 26): Hong Leong Investment Bank (HLIB) sees the ban on online optical device and contact lens sales in Malaysia as a boost for Focus Point Holdings Bhd (KL:FOCUSP). 

The ban would reduce unregulated competition and is expected to drive traffic to its physical stores, HLIB said in its note.

On Tuesday (March 25), the Medical Device Authority (MDA) banned the online sale of optical devices and contact lenses on e-commerce platforms, reportedly to protect the health and safety of users’ vision.

Any individuals found to be carrying out such activities without MDA approval will be in violation of the Medical Device (Advertising) Regulations 2019, Regulation 2(1), and can be fined no more than RM200,000, or imprisoned for no more than two years, or both. 

Focus Point, with a strong network of 196 optometry outlets, is well-equipped to benefit from the regulatory shift, the research house said.

The ban will likely increase store visits and sales, as consumers seek professional eye care and prescription eyewear, it said. 

Beyond immediate sales growth, HLIB also thinks the regulation enhances consumer trust in authorised optical retailers like Focus Point, reinforcing its credibility and reputation in the market. 

This could translate into sustainable revenue growth, as customers value quality, safety and professional service over unregulated alternatives.

With its expansive retail presence and advanced services like 360° Advanced Primary Eye Care and AirDoc AI Fundus, Focus Point is well-positioned to seize this opportunity, the research house added. 

HLIB maintains its “buy” rating on Focus Point, setting a target price of RM1.10, based on a price-to-earnings multiple of 14 times FY2025 earnings per share.

Shares of Focus Point traded half a sen higher to 80.5 sen at noon break on Wednesday, giving it a market capitalisation of RM369.46 million.

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Ban on online sale of optical devices, contact lenses