After a meeting with the management at Asia File, MIDF analysts said they are cautiously optimistic about the company’s outlook for FY24.
Among the key highlights of the meeting was the proposition of taking Filing products online in the UK and Germany. MIDF said it anticipates that demand for filing goods will remain subdued due to digital transformation and environmental concerns, leading to a reduction in the usage of traditional physical filing products globally. This, however, presents an opportunity as it could result in the exit of smallscale competitors, enabling the group to potentially capture more market share in Malaysia. Notably, Asia File currently holds approximately 70% of the market share of filing suppliers in Malaysia. This is attributed to its economies of scale and lower unit costs, allowing the group to offer competitive prices.
Additionally, the group plans to enter ecommerce platforms in the UK and Germany. This departure from traditional marketplaces allows the organisation to reach out to individual clients directly and build its own brand.
Looking ahead, while consumer sentiment for consumer goods remains sluggish in traditional commerce, MIDF expects an uptick in December 2023 sales on ecommerce platforms, driven by year-end sales.
Recall that Asia File markets its consumer goods under the flagship brand “ABBAWARE.” This brand offers premium quality and competitive pricing to end-users via online platforms like Shopee and Lazada in Malaysia. Meanwhile, the group also aims to expand the market share of consumer wares to 40% in the mid-to-long term from the current 1/3 market share.
On the other hand, the house foresees a continued normalisation of demand for food ware, primarily due to more people preferring to dine out post economy reopening, thereby reducing the demand for delivery food.
