Synnex's (2347TW) FY2020 profit NT$8.2 billion, hit a new high; Cash dividend NT$3.3 per share


  Synnex has announced its business performance of 2020, of which net profit after tax for the whole year was NT$8.2 billion, increased 20% YoY; earnings per share was NT$4.89. Whereas the financial indicators such as gross profit, operating income, profit before tax and profit after tax all simultaneously hit the record high in 2020. Furthermore, the cash dividend per share of NT$3.3 has been decided, which significantly increased to 27% over last year.


  In 2021, Synnex optimistically expects to have double-digit growth performance, in both revenue and profit that would reach new high due to post-pandemic favorable market conditions and stimulus.


  Synnex expressed that overall business performance has seen steadily growth over quarters, reached double-digit growth over the last 3 quarters consecutively, despite the whole-year revenue has been flat which impacted by the pandemic last year. Profitability has been greatly improved with the implementation of the Agility Project over the last 2 years. Synnex's product portfolio has continuously been improved by increasing the proportion of high-margin products and agile responding customer needs for valued-added services, which contributes to enhancing the gross profit. While the decreasing expenses can be credited to Synnex’s efforts in introducing digitalization for sophisticated information exchange as well as the use of AI tools for big data analysis, has led to the overall uphold the operating efficiency and drive down the cost. Owing to the increase of gross profit and the decreasing operating expenses, Synnex’s 2020 operating income, pre-tax/after-tax net profit, and earnings per share simultaneously recording historical high regardless of amount or ratio.


  In the fourth quarter of 2020, the profitability continued the momentum of the quarterly increase in the first three quarters. Both gross profit and operating income reached a record high in the same period. Net profit after-tax was NT$2.5 billion, with a substantial increase of 28%, and a record single-quarter high. Earnings per share was NT$1.48. Cumulative full-year for 2020, gross profit exceeded NT$15 billion, gross profit ratio was 4.5%; operating expenses dropped sharply by 10%, resulting in a 21% growth in operating income and an operating income ratio of 2.2%. Profit before tax was NT$10.5 billion, breaking the 10 billion-mark for the first time, increased 18% YoY. After-tax net profit was NT$8.2 billion, up 20%, net profit ratio reached 2.44%, and earnings per share was NT$4.89.


  At the same time, BOD resolved and declared 2020 cash dividend distribution of NT$3.3 per share, a 27% increase from last year’s NT$2.6. The dividend pay-out ratio is 67.5%. The yield rate is around 6.6% based on the current stock price, 49.9 closing at 3/12.


  Looking forward in 2021, Synnex will continue to enhance its digital capabilities and actively explore more value-added services and new businesses, at the same time, it has set the theme of this year as "Leap Forward", in which to expand its market share in full force and dimensions, continue to recording the new high. Synnex is also optimistic about the market momentum this year. In particular, the epidemic has prompted companies to accelerate their investment in digital transformation, and aggressively use digital technology to increase operational flexibility. Such rigid demand has kept the IT market in a strong situation. Compounding by the new technologies and applications such as 5G, WiFi 6, VR/AR, AIoT, and next-generation display technologies are becoming more mature, which will drive the substantial growth to related products. With the benefits of favorable internal and external environments, Synnex is optimistic that this year's performance will have double-digit annual growth, and both revenue and profit are expected to reach a record high.


  In addition, Synnex will vigorously promote the ESG-related matters this year, and fully disclose relevant information, in order to fulfill the social responsibility of corporate citizenship and global environment, sustainable development.