The B2C segment continues to show strong growth, now accounting for 54% of total revenue, up from 52.2% in 1Q24. The summer season in the US began late in 2Q, leading to increased consumer spending on outdoor furniture and other necessities rather than Synergy’s indoor furniture.
Synergy house will benefit from the Wayfair platform as well as the potential to establish new recurring revenue streams through partnerships with other local furniture manufacturers
The company has a dominant position in B2C sales and has established a strong presence on third-party e-commerce platforms in the United States, the United Kingdom, Canada, and Germany. Invest it with confidence 👍
The US Furniture Market Report 2022 stated that the US furniture market is expected to reach a value of US$288.9 billion (RM1.35 trillion) by 2026, with a compound annual growth rate of 4.47% from 2022 to 2026.
Malaysia exported RM13.86 billion of furniture globally in 2022, with the US being its top export destination at RM7.24 billion or 52.2% of the nation’s total furniture exports last year. Malaysia was the US’ sixth largest source of imported furniture in 2022, accounting for 2.78% of its total furniture and bedding import value.
UK eco-friendly furniture market sees significant growth as consumer demand rises, driven by sustainability and environmentally conscious choices. Will Synergy House explore into eco-friendly furniture ? 😀
Maintain BUY and MYR1.55 TP, 22% upside and c.2% FY25F yield. We trim our FY24F EPS by 3.5% but keep our FY25F earnings and TP, on expectations of margin recovery. We remain positive on Synergy House’s prospects driven by its expansion into higher price-point segments on business-to-consumer (B2C) e-commerce platforms. Manpower costs should stabilise from FY25F as it approaches its target headcount. Coupled with stronger year-end festive sales and expected improving operational efficiency in FY25F, we believe SYNERGY remains an attractive investment opportunity.
Next game plan – unlocking premium segment. To sustain the revenue growth momentum, Synergy is focused on its continuous expansion into new platforms and countries while diversifying its product offering into other categories and exploring higher price-point segments in the B2C market in collaboration with international e-commerce platforms
Technical Buy - SYNERGY (0279) Possible for trend reversal. SYNERGY is potentially staging a breakaway from its recent retracement, with anticipation of continuous improvement in both momentum and trend in the near term. Should immediate resistance level of RM1.30 be broken with renewed buying interest, it may continue to lift price higher to subsequent resistance level of RM1.36. However, failure to hold on to support level of RM1.14 may indicate weakness in the share price and hence, a cut-loss signal.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kahfui1221
422 posts
Posted by kahfui1221 > 2024-08-19 09:50 | Report Abuse
Breaking EMA 10 now. Next will be EMA 30 🔥