Synnex(2347TW)’s Y19Q1 revenue reached NT$82bn, with decline of 8% YoY, still breaking historical second highest record

Synnex Y19Q1 preliminary consolidated revenue accumulated to NT$82bn due to economic slowdown. Although revenue declined by 8%YoY, still reached historical second highest record in the same period and kept above NT$80bn level.


Distribution BU revenue totaled NT$60.9bn in Y19Q1, achieving the second highest level of NT$60bn, but declined with 5%YoY from previous year. Among them, mobile phone revenue dropped 25%YoY, mainly resulted from the lack of unique selling points and weak replacement demand. IT products revenue slightly declined 4%YoY, due to economic slowdown in consumer market, weak economic environment and hesitant attitude toward buying. Enlarging investment in IT security, cloud big data application and digital transformation from enterprise and government brings commercial revenue remained double digit growth in recent years, grew 30% YoY in Y19Q1. Consumer products reached growth of 22%YoY mainly benefited from the booming growth in eSports.


As for IC component business, Y19Q1 revenue came to NT$21.1bn, with decline of 17%YoY. The impact of uncertainty of trade war, numerous uncertain factors and unsolved problem from CPU short supply, causing manufacturing schedule became more conservative.


Looking forward to Y19Q2, expecting to eliminate uncertain factors by having clear and concrete development of trade war as well as finalization of elections in some countries, Synnex still expect to enjoy prosperous opportunity in Y19Q2.