PETALING JAYA: Synergy House Bhd revenue stream will expand by financial year 2026 (FY26) with it being the first Malaysian authorised service partner for a leading US online home retailer.
With minimal capital impact, RHB Research said Synergy House has advanced from being a Malaysian cross-border eCommerce furniture seller and a furniture developer to becoming the authorised on-boarding service partner for the world’s leading eCommerce home retailer.
Its current valuation of 15.7 times FY25 price earnings ratio offers a compelling investment opportunity, especially with a three-year earnings compounded annual growth rate of 34%, according to RHB Research.
The research house said the company would generate recurring income streams by hosting and supporting various vendors in the future.
RHB Research has a “buy’’ call on Synergy House with a target price of RM2.01 a share.
It said Synergy House’s strategic pivot to becoming an eCommerce vendor on third-party platforms since 2019, amid US-China geopolitical tensions, has proven timely.
“As an authorised service partner, Synergy House will primarily support local Malaysian manufacturers and vendors, ensuring a smooth integration into the retailer’s global eCommerce system.
“It will collaborate with the US retailer to co-host online and offline events aimed at on-boarding new vendors of various home furnishing products and raising awareness about the latter’s eCommerce ecosystem.”
Once vendors are successfully on-boarded, Synergy House will work closely with them, offering various services.