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. An article on Forbes estimates that COVID-19 has accelerated e-commerce growth by 4 to 6 years, with increases in online spending up 77% in the US.
The Singapore Exchange (SGX) does not boast international juggernauts such as US’ Amazon and eBay, China’s JD.com, Alibaba and Tencent or Japan’s Rakuten. What it does have are smaller niche players who may potentially gain from the rise in prominence of 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 2014, Synagie is a leading e-commerce solutions provider in South East Asia in the Body, Beauty and Baby sector. It helps SMEs and MNCs execute their e-commerce strategies by selling their goods or services to consumers online and providing one-stop services and integrated technology to manage their multi-channel e-commerce operations.
Currently, Synagie is currently trading at $0.193, giving it a market capitalisation of over $59 million. This is a 50% increase since the start of 2020.
In its latest 1H2020 results, Synagie boasted 326% increase in revenue to $38 million. On the back of this, its net profit swung to $4.1 million, compared to a loss of $3.7 million in 1H 2019. The bulk of this increase could be attributed to an increase in COVID-19-related products and increased e-commerce activities.
On 5 August 2020, Synagie announced the proposed disposal of its e-commerce business to a consortium, which includes the founders of the group. It explains that this will allow it to realise the aggregate consideration of $61.7 million, while allowing it to focus on its Insurtech operations.
Y Ventures Group (SGX: 1F1)
Based in Singapore, Y Ventures claims to be a data analytics-driven e-commerce retailer and distributor, partnering with the world’s leading brands to sell their products on popular online marketplaces in the US, Europe, Singapore, Taiwan and Indonesia.
Y Ventures’ shares are currently trading at US$0.098, which is a 21% decrease since the start of 2020.
In its latest 1H2020 results, it recorded a 36% increase in revenue to US$17.6 million and reversed into US$322,000 profit from a loss of US$534,000 in the preceding period. According to Y Ventures, this 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 FY2020 results, it posted a 1% increase in revenue to RM162.7 million. During the year, it achieved a 33% lower net profit of RM3.6 million. One reason cited for its lower profitability was due to lower revenue and a change 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 corporate and others. Its IT operations encompasses its e-commerce services, as well as system integration and distribution and marketing of computer hardware and software.
For its latest 1H2020 results, PlatoCapital announced a 40% increase in revenue to $600,000, leading to a 40% improvement in its bottomline – losing $2.1 million, compared to $3.5 million in the preceding period. Revenue from its IT division fell 18.8% due to lower licence sale and implementation services, which was offset by an increase in revenue generated from credit facilities provided by Plato Capital.
Since the start of the year, PlatoCapital’s share price has gained 138% – trading at $1.14 today.
Get The Latest Bite-sized Investment News, Ideas & Insights
It's free! Don't miss out on the latest financial market movements. FSMOne aims to help investors around the world invest globally and profitably, follow FSMOne’s Telegram for bite-sized finance analyses and exclusive happenings.
4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.