PETALING JAYA: SSF Home Group Bhd
’s longer-term business prospects look good.
According to Apex Securities, the company’s outlook will be well supported by strategic geographical expansion along with improving customer engagements through active membership participants, its in-house mobile app and the revolution of home products to meet customers’ needs.
“We like SSF for its integrated position as one of the largest home furniture retailers in Malaysia, commanding approximately a 0.3% market share in Malaysia’s home furnishing retail industry based on the financial year ended April 2023 (FY23) revenue,” it said.
The research house has given a target price of 60 sen for the stock, taking into account SSF’s gradual opening of new outlets.
“Core earnings are expected to improve from aggressive new outlet openings in the bid to tap into a wider geographical reach within Malaysia and improving purchasing power following the introduction of the Employees Provident Fund Account 3,” said Apex Securities.
It added that SSF plans to ramp up the number of retail outlets from 42 currently to 48 by end of FY25. “We reckon that the move will also cement its position as one of the leading furniture retailing companies in Malaysia and will be earnings accretive.”
