4 Stocks This Week (E-Commerce) [14 August 2021] Synagie; Y Ventures; Shopper360; PlatoCapital
While majority of business sectors face uncertainties amid the current COVID-19-driven downturn, one of the beneficiaries has been companies with exposure to the e-commerce sector. Articles on Forbes estimates that COVID-19 has accelerated e-commerce growth by 4 to 6 years, with increases in online spending up 77% in america.
The Singapore Exchange (SGX) does not boast international juggernauts for example US' Amazon and eBay, China's JD.com, Alibaba and Tencent or Japan's Rakuten. What it really does have are smaller niche players who might gain from the rise in prominence from the e-commerce industry.
In our 4 Stocks This Week column, we look at four Singapore-listed companies which have exposure to the vibrant and growing e-commerce industry.
Synagie Corporation (SGX: V2Y)
Founded in 2021, Synagie is a leading e-commerce solutions provider in East Asia in the Body, Beauty and Baby sector. It will help SMEs and MNCs execute their e-commerce strategies selling their goods or services to consumers on the internet and providing one-stop services and integrated technology to handle their multi-channel e-commerce operations.
Currently, Synagie is currently trading at $0.193, passing on a market capitalisation of over $59 million. This can be a 50% increase since the start of 2021.
In its latest 1H2021 results, Synagie boasted 326% increase in revenue to $38 million. Around the back of this, its net gain swung to $4.1 million, compared to a loss of $3.7 million in 1H 2021. The majority of this increase could be related to an increase in COVID-19-related products and increased e-commerce activities.
On 5 August 2021, Synagie announced the proposed disposal of their e-commerce business to a consortium, including the founders of the group. It explains that this will allow it to realise the aggregate thought on $61.7 million, while letting it focus on its Insurtech operations.
Y Ventures Group (SGX: 1F1)
Based in Singapore, Y Ventures states be a data analytics-driven e-commerce retailer and distributor, partnering with the world's leading brands to market their products on popular online marketplaces in america, Europe, Singapore, Taiwan and Indonesia.
Y Ventures' shares are currently trading at US$0.098, which is a 21% decrease since the start of 2021.
In its latest 1H2021 results, it recorded a 36% rise in revenue to US$17.6 million and reversed into US$322,000 make money from a loss of US$534,000 in the preceding period. According to Y Ventures, it was mainly due to an increase in the sales of books online marketplaces.
Shopper360 (SGX: 1F0)
Shopper360 is a well-established shopper marketing services provider in the retail and consumer goods industries in Malaysia, Singapore and Myanmar. It provides in-store advertising, as well as integrate along the entire shopper journey.
In its latest FY2021 results, it posted a 1% increase in revenue to RM162.7 million. In the past year, it achieved a 33% lower net gain of RM3.6 million. One reason cited because of its lower profitability was because of lower revenue and a alternation in revenue mix for its in-store advertising and digital media business, which was partly offset by its field force management.
It is currently trading at RM0.086, which is nearly 33% lower compared to the start of the year.
PlatoCapital (SGX: YYN)
PlatoCapital has three main segments – IT operations, investment activities and company and others. Its IT operations encompasses its e-commerce services, in addition to system integration and distribution and marketing laptop or computer hardware and software.
For its latest 1H2021 results, PlatoCapital announced a 40% rise in revenue to $600,000, resulting in a 40% improvement in its bottomline – losing $2.A million, compared to $3.5 million in the preceding period. Revenue from the IT division fell 18.8% because of lower licence sale and implementation services, which was offset by an increase in revenue generated from credit facilities provided by Plato Capital.
Since the beginning of the year, PlatoCapital's share price has gained 138% – trading at $1.14 today.