Synnex's(2347TW) Q2 and H1 revenue both reached a record high, with annual growth of 28% and 27%

Synnex's preliminary consolidated revenue in the second quarter approached the 100 billion milestone, reaching NT$96.8 billion, a record high for the same period with annual increase of 28% and quarterly increase of 12%. Accumulated revenue of NT$183.6 billion in the first half, in addition to annual increase of 27% and record high for the same period, the scale of more than 180 billion reached the peak season level of the second half of the previous year. As computers have become a must-have for individuals in the post-epidemic era, and the gradual unblocking will also cheer up the commercial market, Synnex is optimistic that business momentum is expected to continue to hit new highs in second half.


Synnex said that first half can be said to be more prosperous month over month. Except for February, less working days due to the lunar New Year, the other five months have monthly revenues more than NT$30 billion. This performance has reached, even exceed, the traditional peak season in the second half of the past. In the second quarter, the market was even more prosperous than in the first quarter. Even under the pressure of tight supply and rising prices, sales momentum remained quite strong.


In addition to the blessings of the external environment, Synnex's strong digital capabilities are also an important key for Synnex to not fear the interference of the epidemic, and continue to achieve new highs. Synnex stated that Synnex has continued to invest in digital infrastructure over the years to strengthen the group's system and management capabilities. In recent years, business operations has become more automation through digital optimization, and the ability and habits of all employees to use App and mobile tools to service customers also have been established. Therefore, even encounter lockdown and WFH due to epidemic, Synnex still able to provide comprehensive services without interruption, that making vendors and customers more willing to expand cooperation with Synnex, then the performance is continue to reach high naturally.


From product perspective, due to manufacturers prepare more materials for production to meet robust demand for PCs, servers, and networking, IC Component business first time breaking NT$30 billion milestone in a single quarter, reaching all time high and growing 55%. Due to the rebound in demand for data center equipment in the market, and continuous investment in cyber security and cloud services, Commercial IT business has reached a new high for the same period for two consecutive quarters, annual increase of 19%. Due to the rigid demand for gaming/e-sports, PC/notebook and related peripherals, Consumer IT business also hit a record high over the same period with growth of 16%. Telecom business also grew by 21% due to the wave of 5G smartphone replacements.


From a region perspective, all Synnex's BUs, except for Australia and New Zealand affected by the higher base period, reached a double-digit annual increase of over 20% in second quarter. In which, Australia and New Zealand reach new high for the same period for five consecutive quarters. Indonesia hit new high for the same period in second quarter with grew by 32%. Taiwan region grew by 28%, IT category grew by 51% and reach all time high. Mainland China grew by 26%, Commercial Solution category hit record high over the same period, Components and Consumer Electronic also reached a five-year high.


For second half outlook, Synnex is optimistic that the rigid demand for IT products in post-epidemic era will continue to increase the penetration rate of PC/notebook and related peripherals owned by individuals and families. In the meantime, commercial market will become more active due to bunch of economic activities driven by gradual unblocking. Coupled with the expected launch of some hero new products such as iPhone and Windows 11 in second half, Synnex is optimistic that business momentum is expected to continue to hit new highs in second half.