Synnex (2347) revenue in the first quarter was NT$100.9 billion, an annual increase of 16%. It was the third consecutive quarter to reach the 100 billion mark, and it also set a record of breaking the 100 billion level for the first time in a single quarter in the first half of the year. The after-tax net profit was NT$2.5 billion, which was the sixth consecutive quarterly record high for the same period, and the first-quarter earnings per share reached NT$1.53.
Synnex said that despite constant market noise in the first quarter, Synnex's business units vigorously promoted the Management Service Platform (MSP) to provide tailor-made services for major vendors and customers, sprint revenue growth, and generate economies of scale, driving the expense ratio to continue to decline. Coupled with the continuous optimization of product mix and improvement of operational efficiency, Synnex's first-quarter gross profit, operating income, before-tax and after-tax net profit, and other profit indicators, continued to maintain a high level, and simultaneously set a record for at least five consecutive quarters of record highs over the same period.
Synnex's overseas joint ventures also performed well in profit. Excluding TD Synnex, which has changed the accounting method, the JV income in the first quarter increased by 38% to NT$671 million; among them, India/Middle East (Redington) and Vietnam (Synnex FPT) increased by 42% and 109% respectively.
Synnex's gross profit in the first quarter was NT$4.3 billion, and the operating expense ratio was 1.97%, which was the second consecutive quarters and the first time in the first half of the year that a single quarter below 2%. This made the operating income margin remained at the level of 2.28%, and operating income reached a new high of NT$2.3 billion in the same period. The pre-tax net profit rate of 3.22% and the after-tax net profit rate of 2.52% also remained at a high level. The before-tax net profit was NT$3.2 billion and the after-tax net profit was NT$2.5billion, setting new highs for the same period for the eighth consecutive quarter and the sixth consecutive quarter respectively. Earnings per share were NT$1.53.
Looking forward to the second quarter, although there are still many variables in the overall environment, Synnex is still optimistic about the rigid demand for IT products from the government, enterprises and end users. At the same time, the Management Service Platform (MSP) that Synnex has accelerated its deployment in recent years has shown its benefits and value in the volatile market environment. It has won the favor and expanded adoption of upstream and downstream suppliers and customers, driving Synnex's market share to continue to increase. Synnex is cautiously optimistic about its operating performance in the second quarter.