Chloe Tai Blog

Synergy House Berhad - B2C, B2B & AI Furniture Exporter

Publish date: Wed, 24 Apr 2024, 12:32 AM
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 Synergy House Bhd is expected to register strong earnings growth in the next three years, boosted by its rapid expansion of the business-to-consumer (B2C) division as well as a resilient business-to-business (B2B) segment.

Synergy House is focusing on leveraging technology and artificial intelligence (AI) to acquire up-to-date information and enhance efficiency in expanding the B2C sales segment.

Synergy House is a cross-border eCommerce seller and furniture exporter, specialising in affordably designed ready-to-assemble (RTA) home furniture.

The company, which serves B2B and B2C channels, reaches customers through online retailers, chain stores, wholesalers, and third party eCommerce platforms.

“As part of its growth strategy, Synergy House aims to strengthen its B2C segment which enjoys better margins”.

The company targets a 70% B2C revenue share by the financial year ending Dec 31, 2025. The B2C segment made up 55% of revenue for FY23 versus 25.6% in FY22.

This year, the company plans to expand its B2C offering to over 2,000 stock-keeping units (SKUs). 

Synergy House will enter the French market, replicating its successful UK model. It already has operations in five markets and 11 platforms, including Wayfair US.

Synergy House will onboard more than four new platforms in 2024 such as Amazon Germany, Canada, France, and Mano-Mano France, according to the research house.

Simple Mathematics Growth Calculation:

Step 1: Q4 2023 result: RM0.0205 EPS

Step 2: Annualized: RM0.0205 EPS x 4 quarters = RM0.0820 EPS

Step 3: Forecast 2024. Conservatively assume each quarter will only grow by 20% flat from Q4 2023 base and stay constant. RM0.0820 EPS x 1.2 : RM0.0984 EPS

Step 4: Take Industry average PE 15

Step 5: Valuation. RM0.0984 EPS x PE 15 : RM1.48

The whole world is Synergy House Berhad's market via online selling.

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