Synergy House (SYNERGY MK, NON RATED, TP: MYR0.64)

Strong Synergy With E-Commerce

Trading Idea

Analyst: Queenie Tan

♦️ MYR0.64 FV based on 11x FY24F P/E. Unlike other listed furniture players, Synergy House fully outsources its furniture manufacturing works. Its new e-commerce venture has also grown by leaps and bounds in the US and UK. The cross-border business is set to be driven by prolonged US-China tensions, market share gains, higher purchasing power in western markets, and growing demand for online furniture. An asset-light model offers a high FY23F ROE of c.30%. Notwithstanding the expected exponential growth, the FY24F P/E of c.7x makes for compelling investment.

♦️ Link to the report:

​https://research.rhbtradesmart.com/files_preview?hash=b98b942a-a930-455a-a703-476a0bd2a9cd​