Synergy House — An underrated gem will eventually be discovered!!

Publish date: Fri, 19 Apr 2024, 03:23 PM

Synergy House is a cross-border e-commerce seller and furniture exporter specializing in beautifully designed and affordable Ready-to-Assemble (RTA) home furniture. Since its initial public offering, the company has encountered notable share price growth, which reflect the changing investor perceptions towards Synergy House’s financial health and growth prospects.

Source: Tradingview

Share Price Performance:

The share price trajectory of Synergy House since its IPO has been marked by pronounced volatility. On the first day of its listing debut, the share price fluctuated below the IPO price of RM0.43, ranging between RM0.350 and RM0.405, indicating that the market was still grappling with a full understanding of their business model. Despite this rocky start, as the company showcased its prowess through an expansion of its B2C segment and strategic employment of AI and IT, investor confidence gradually strengthened. This culminated in a sharp rise in the share price, which reached a high of RM1.200 on April 12, 2024. This notable ascent from the IPO price distinctly highlights the market’s acknowledgment of Synergy House’s potential for growth and its solid value proposition.

Source: Synergy House Berhad — Q4FY2023 Corporate Presentation Slides

Financial Performance and Segmentation:

In the financial performance, Synergy House has showcased robust revenue expansion, particularly within the Business-to-Consumer (B2C) sector. From FY2022 to FY2023, the B2C segment’s revenue surged by an impressive 145% year-on-year. This considerable growth is mirrored in the share of total revenue, which increasingly tilts towards the B2C domain, indicating strategic sales diversification. The Business-to-Business (B2B) segment, while growing at a steadier pace, remains solidly profitable, buoyed by long-standing customer relationships and market resilience.

Future Strategies:

Looking ahead, Synergy House’s 2024 strategies are poised to catalyse further growth. The company aims to bolster its B2C operations by targeting new platforms and countries, with an ambitious goal to roll out more SKUs by year’s end. Additionally, Synergy House plans to broaden its product suite with innovative home improvement items, tapping into new consumer segments. A concerted push towards advanced technologies and AI signifies a commitment to operational excellence and market competitiveness.

In conclusion, Synergy House Berhad presents a narrative of dynamic growth, strategic diversification, and technological integration. The surging B2C revenues, unwavering B2B foundation, and resolute advancement into new markets and technologies encapsulate the company’s forward momentum. With investor sentiment rallying behind the share price’s upward swing, Synergy House stands as a compelling example of a company capably navigating the challenges and opportunities of cross-border e-commerce and the RTA furniture market.

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Sadly I bought at 1.11, it went to 1.16 and due to the surprise Israel shot 3 drones into Iran with Dow Jones futures dropping sharply, it dropped back to 1.11.

1 month ago

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