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👓 Focus Point’s Nationwide Reach: What It Means for Investors 👓
Focus Point is now present across all states in Malaysia. As at March 2026, the Group had 207 optical outlets, and it has continued to expand with recent openings in Bangi Central, Imago Jaya and Langkawi.
For investors, this is more than just “opening more shops”. A wider outlet network means Focus Point can reach more customers across different parts of Malaysia, not only in major malls, but also in townships, East Malaysia and tourist destinations. This gives the company more touchpoints to serve everyday eye-care needs, from eye checks and prescription glasses to contact lenses, sunglasses and myopia management.
More importantly, the expansion is backed by actual earnings growth. Focus Point’s Optical segment is still the main reason investors are paying attention. In FY2025, the segment delivered record revenue of RM263.2 million and PBT of RM53.1 million. The momentum continued into 1QFY2026, with Optical revenue growing 9.4% year-on-year to RM66.8 million, while PBT rose 9.3% year-on-year to RM12.7 million. The segment also recorded a 3-year revenue CAGR of 8.5%, showing that this is not just a one-quarter improvement, but a steady growth trend.
What makes the optical business attractive is that it is not purely driven by “nice-to-have” spending. People still need proper vision care when their eyesight changes. Parents still need to manage their children’s vision. Office workers still need eye checks after long hours of screen time. In other words, demand for eye care is more practical and recurring compared with many other retail categories.
But Focus Point is not only growing through new outlets. It is also building stronger community trust around eye care. One example is its FOCUS4Sight initiative in Penang, launched together with Jabatan Pendidikan Negeri Pulau Pinang. The programme aims to reach 398 schools over three years, starting with 150 schools in the first phase. It also trained 150 teachers as “Vision Guardians” to help support early eye screening and eye-care awareness among students.
This kind of initiative matters because it puts Focus Point closer to families, schools and local communities. When a company is seen as part of the eye-care ecosystem, not just a retailer selling glasses, it strengthens customer loyalty over time.
For shareholders, the investment story is quite straightforward. Focus Point has a nationwide footprint, a growing store base, a profitable Optical segment, and a brand that is becoming more closely linked to everyday eye-care needs. If Focus Point continues to open the right outlets, it will translate into profitably growth and better long-term returns for shareholders through their quarterly dividend distributions.
Wellcall’s share price has been under pressure, declining 14% in 2025 and a further 18% in the first half of 2026. The stock is currently trading near the lower end of its 52-week range of RM1.10 – RM1.50.
At the recent closing price of RM1.13, KLSE Screener shows a dividend yield of 7.1% and a price-to-earnings ratio of 14.42x. Notably, Wellcall has continued to pay quarterly dividends throughout this period of share price weakness, a consistent capital return feature that many income-focused investors continue to watch closely.
The softer share price performance largely reflects ongoing global demand weakness for low and medium pressure industrial hoses, rather than any sudden deterioration unique to the company.
On a more constructive note, management is progressing a new production process that could streamline operations and support margins if successfully commercialised. Analysts from BIMB Securities and Berjaya Research have maintained their Neutral/Hold calls, citing near-term demand caution while still acknowledging the company’s operational strengths and dividend consistency.
In short, the current valuation offers an elevated yield of 7.1% with continued quarterly dividend payments, set against a backdrop of soft industry demand and ongoing operational improvements.
PARADIGM REIT: STRONG RETAIL ASSETS, HIGH OCCUPANCY AND IMPROVING INCOME QUALITY MAKE THE FUNDAMENTALS WORTH WATCHING
Paradigm REIT looks like one of the more straightforward REIT stories on Bursa right now. At its core, the trust owns three established retail assets — Paradigm Mall Johor Bahru, Paradigm Mall Petaling Jaya, and Bukit Tinggi Shopping Centre — giving it a portfolio with both scale and familiarity in the Malaysian retail REIT space. Based on the portfolio disclosures, the latest appraised values stood at RM1.182 billion for Paradigm Mall Johor Bahru, RM605 million for Paradigm Mall Petaling Jaya, and RM680 million for Bukit Tinggi Shopping Centre.
One of the biggest strengths of Paradigm REIT is the occupancy profile of its assets. As at 31 March 2025, occupancy stood at 99.3% for Paradigm Mall Johor Bahru, 97.9% for Paradigm Mall Petaling Jaya, and 100% for Bukit Tinggi Shopping Centre. For retail REIT investors, this matters because occupancy is often the first sign of asset quality. High occupancy across all three properties suggests these are not struggling malls with weak tenant demand, but income-generating assets with strong leasing support.
The latest earnings update also supports that view. For 4QFY2025, Paradigm REIT recorded RM60.85 million in revenue, up 4.4% quarter-on-quarter, mainly due to higher rental income. The trust’s full-year numbers showed RM132.29 million in revenue and RM91.97 million in net property income, while the latest results briefing highlighted an NPI margin of 69.5% and a distribution per unit of 4.10 sen for the financial period ended 31 December 2025. That kind of margin profile is a healthy sign for a newly listed retail REIT, because it shows that the income base is not only sizeable, but also fairly efficient after property operating costs.
From a tenant-quality perspective, the malls also look reasonably well anchored. The top tenants disclosed for the portfolio include names such as Parkson, Lotus, AEON, Village Grocer, GSC, Harvey Norman, HomePro, H&M, Padini, Marks & Spencer, Uniqlo, Level Up Fitness and other established retail brands. This matters because anchor tenants and recognisable brands help support footfall and improve overall leasing resilience, which is especially important in retail REITs where tenant quality can make a big difference to long-term stability.
So the fundamental case for Paradigm REIT is fairly clear. The trust starts with three sizeable retail assets that already enjoy high occupancy, established anchor tenants and healthy property-level income. The latest financials show decent revenue, a solid NPI margin and meaningful distributions, while the strategy is already expanding toward non-retail assets that could strengthen income stability further. In simple terms, Paradigm REIT looks less like a speculative new listing and more like a REIT built on real mall cash flows, with some room to improve its income mix over time.
TAX CHANGE, SAME FUNDAMENTALS: WHY REITS STILL MATTER
The recent REIT tax update has understandably made some retail investors uneasy. It is a pretty simple concern. If the amount you receive after tax is lower, the return naturally feels less attractive.
But it is important to remember that nothing has really changed about how REITs operate. They still do what they have always done — collecting rent and generating steady cash flow from real, income-producing properties. According to Maybank’s latest sector report, while the tax change may affect sentiment in the short term, net REIT yields could still average around 4.7% to 6.0%. That is still fairly attractive compared to many other sectors. More importantly, the tax update does not impact REIT earnings, cash flow, or gross distributions at the trust level.
This is why REITs are often seen as more defensive investments. They may not be the most exciting stocks in the market, but they are backed by real assets and consistent rental income. Instead of avoiding the sector entirely, it may make more sense now to be a bit more selective and focus on REITs that still have the ability to grow and support their returns over time.
That is where Paradigm REIT stands out. In the same report, Maybank highlighted that REITs with stronger growth drivers such as rising rental rates, asset enhancement opportunities, and potential acquisitions are likely to do better in this environment. Paradigm REIT was named a top pick, with Maybank assigning it a target price of RM1.36, implying about 42% upside, while also estimating distribution yields of 7.7% for 2026 and 8.4% for 2027.
At the end of the day, while the tax change may affect short term sentiment, the fundamentals of REITs are still the same. For investors who are looking for steady income and are willing to look past the near-term noise, there may still be solid opportunities in the sector.
