KUALA LUMPUR (Aug 19): Optimax Holdings Bhd’s share price dropped in morning trade today as investors took profit after the eye specialist service provider’s stellar debut on the ACE Market of Bursa Malaysia yesterday when its share price more than doubled from its issue price of 30 sen.

At 10.28am today, Optimax’s share price was down six sen or 8.76% at 62.5 sen, with some seven million units traded.

The stock had pared losses after falling earlier to its lowest today at 61 sen.

Yesterday, the stock closed up 38.5 sen or 128% at 68.5 sen.

TA Securities Holdings Bhd analyst Tan Kong Jin wrote in a note that TA Securities values Optimax shares at a fair value (FV) of 40 sen based on a target price-earnings ratio (PER) of 15 times earnings per share forecast for the financial year ending Dec 31, 2021 (FY21). Tan said Optimax is not rated by TA Securities.

"At the IPO (initial public offering) price of 30 sen/share, Optimax was priced at a one-year trailing PER of 10.3 times,” the analyst added.

Meanwhile, Public Investment Bank Bhd’s research team wrote in a note that it derived an FV of 51 sen for Optimax shares based on an estimated 12 times PER for the company’s EPS of 4.2 sen for FY21.

"Optimax’s competitive strengths include: i) having a track record of 25 years to serve as reference to new customers; ii) having an established network of private eye specialist centres in Malaysia; iii) having a dedicated and medically qualified team of eye surgeons; and iv) having an experienced management and operational team,” the research house said.

According to Optimax’s Bursa filing, the company’s IPO involved a public issue of 70 million new shares at 30 sen each.

At 30 sen, Optimax had a market value of RM81 million based on an enlarged issued share capital of 270 million shares.