My 2 cents on SYNERGY:-

Market Reaction and Company Response:

1. Synergy House Berhad (SYNERGY) experienced a significant share price drop of 27% in one day, triggered by the acquisition of its client, Hillsdale Furniture, by Green River Group.

2. Concerns arose about SYNERGY's ability to collect a USD 2.9 million debt from Hillsdale, but SYNERGY expects minimal impact from this incident.
Financial Performance:

3. Historically, SYNERGY has shown substantial growth, with recent quarterly profits exceeding those of the entire FYE2022. For Q4 FYE2023 and Q1 FYE2024, SYNERGY reported combined revenues of RM174.5 million and profits of RM19.3 million, surpassing the FYE2022 figures.
Investment Potential:

4. RHB Investment Bank has maintained a “Keep BUY” rating for SYNERGY, raising the target price to RM1.610 from RM1.080. The re-rating is driven by strong B2B sales, investments in AI and data analytics, and a new business model involving collaboration with local furniture makers to expand on Wayfair. This suggests significant future earnings potential for SYNERGY.