CGS-CIMB started Synagie at Add, with a S$0.22 target price, saying it’s one of the fastest-growing e-commerce service providers in Singapore.
“We expect Synagie to ride on robust e-commerce growth prospects,” it said in a note last week, noting it uses a hybrid of the distribution, consignment and subscription models.
Synagie, established in 2014, provides e-commerce services to more than 250 fast-moving consumer goods brands in Singapore, mainly in the body, beauty and baby (BBB) segment, it said, adding that its services include setting up brands’ online retail presence on popular marketplaces, including Lazada and Qoo10 as well as managing e-logistics and fulfillment.
“The group counts Unilever, Nestle, Colgate-Palmolive and Henkel as some of its customers in Singapore, and, shortly after expanding operations to Malaysia in 2017, it has also added Amore Pacific, Blackmores and Coty to its customer list,” the note said.
Synagie also acquired its profitable Insurtech subsidiary, 1Care Global, earlier this year to enter the third-party administrator business, which could help Synagie expand into the computer, communication and consumer electronics (3C) segment, the note added.
Frost & Sullivan rates Synagie as one of the fastest-growing startups in Southeast Asia, with a historical revenue compound annual growth rate (CAGR) of 551.8 percent over 2015-17, the note said.
“We think other revenue growth drivers may come from Synagie’s expansion into other product categories beyond BBB and outside of Singapore,” CGS-CIMB said.
CGS-CIMB said that while the company is currently money-losing, it projected around 70 percent revenue CAGR over 2017-2020, with positive net profit to be achieved by the end of 2020.
Shares of Synagie ended Friday down 2.22 percent at S$0.22.