PETALING JAYA: To maintain its revenue growth momentum, Synergy House Bhd
is expanding into new platforms and countries amid some downside risks.
RHB Research said the furniture company is focused on expansion into new platforms and countries while diversifying its product offerings to sustain revenue.
“We raise our financial year 2024 (FY24) forecast revenue target by about 3% following the stronger-than-expected revenue but lower our core earnings forecast by 3.5% due to higher operating costs, particularly manpower and freight expenses,” the research house added.
For FY25, RHB Research is maintaining its earnings forecast, expecting margin recovery from softening freight rates and improved cost efficiencies.
The research house said Synergy House’s management guided that the company remains in its growth stage, focusing on long-term expansion despite short-term profitability pressures.
The company achieved record-high revenue of RM114mil, driven by a 56.2% rise in the business-to-business segment and 78.5% in the business to consumer segment.
