Catalysts
1. SSF Home Group Berhad (Bursa Malaysia: 0287) listed on the Bursa Malaysia 12 October 2023
2. As of December 2024, 43 retail outlets throughout Malaysia
3. Locations average RM 4 million per outlet per year
4. Operates brick-and-mortar and online e-commerce retail
5. 99,916 members of the paid membership program; RM20 per year
6. The plan to open six retail outlets across a three-year period; beginning in 2025 until 2027
7. Digital enhancements include:
a. Migration to a new Enterprise Resource Planning system
b. Enhancement to the e-commerce website
c. Upgrade to the SSFHOME mobile application
Industry Tailwinds
The Malaysian furniture market is driven by factors such as increasing disposable income, changes in aesthetic design preference and availability/convenience of e-commerce, create a positive industry outlook.
Industry Headwinds
Changes in design trends, sustainability factors and unpredictible supply chain logistics are all considerations SSF Home Group face and strategically plan mitigation.
Foreign exchange rates play a part of costing and are managed appropriately with downside MYR valuations.
Obsolete and damaged inventory is accounted for from the procurement stage until final showroom display.
Technical Analysis-SSF Home Group Berhad
SSF Home Group Berhad (0287), the shop for furniture and home decor, is experiencing an uptrend in share value, marked by strong investor interest and aligning with the bullish momentum in the KLCI market. Additionally, technical indicators like the MACD align with this positive outlook, suggesting a strong buy signal. We are currently targeting a near-term price of RM0.39, with a further goal of reaching RM0.415 as our next resistance level. Positioned to benefit significantly from enhanced consumer spending following the Budget 2025 initiative, steady inflation rate and strong GDP growth, SSF has demonstrated robust quarterly earnings, signaling a promising outlook for the company's future.
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Disclaimer
The user Ontological holds no position in KLSE:SSF. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.