Mercury Securities likes SSF Home Group for its attractive expansion plans and strong market presence
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00:00 Quick look at Ace Marketbound's SSF Home Group today.
00:04 Mercury Securities is recommending Subscribe.
00:07 With a fair value of 38 cent, SSF is set to be listed at 25 cent apiece.
00:13 So why does Mercury like the stock?
00:16 For starters, it's got an extensive retail presence in the country with 41 retail outlets.
00:22 That enables it to tap into a broad customer base.
00:25 Its supply network comprising 28 entities, that's 19 local manufacturers, 1 local wholesaler,
00:32 7 local trading houses and 1 trading house in Hong Kong.
00:36 Mercury says this enhances SSF's adaptability and bargaining power during price negotiations
00:42 and contract discussions.
00:44 Its customer loyalty program is excellent, 82,997 active paid members in its SSF Home
00:52 VIP Membership Loyalty Program and they tend to return and recommend the brand to others.
00:57 SSF offers a wide array of furniture, home decor and home living products, serving a
01:03 diverse customer base.
01:05 It's also got high inventory levels, enabling it to optimise its supply chain and distribution
01:10 processes, resulting in cost savings.
01:13 According to the research house, the group currently has 0.4% share of the home furnishing
01:19 retail industry in Malaysia of RM46.93 billion in 2022, signifying potential room for growth.
01:27 At the moment, Mercury appears to be the only research house to have issued an IPO note
01:31 on SSF.
01:33 So that's one buy with a target price of 38 cent.
01:36 SSF will go public on the 12th of next month at 25 cent per share, so that implies a potential
01:42 upside of 52%.
01:44 [Music]