Synnex's (2347TW) profit in Q1 continues to hit a record high, +41%,EPS NT$1.52

  Synnex (2347) has made a record high in profit for two consecutive quarters. Following a record high in Q4 of last year, Synnex's profit in Q1 of this year hit a record high again. After-tax net profit was NT$2.54 billion, a sharp increase of 41%, and earnings per share were NT$1.52.


  Looking forward to Q2, Synnex’s April revenue surpassed the NT$30 billion mark and set a new high for the same period, with a substantial growth of 38%. With the blessing of favorable internal and external environments, Synnex is optimistic that it will have the opportunity to set the record again in Q2.


  Synnex's operating net profit in Q1 rose sharply by 37%, with a net profit of NT$2.16 billion and a net profit margin of 2.5%, which are both historical highs. Synnex stated that all of Synnex’s business units are sprinting, actively optimizing product portfolios and continuously improving operational efficiency. Under the dual effects of increased gross profit and reduced expenses, the profits of all business units have increased simultaneously.


  In the JV investment, the recognized income of Synnex’s overseas joint ventures has set a new high for the same period for three consecutive quarters. In Q1, it has grown by 36% to NT$673 million. In countries that have gradually emerged from the impact of the epidemic and are striving for economic recovery, the revenue and profits of Synnex’s joint ventures are expected to continue to rebound.


  Synnex's profitability has increased significantly in recent years, and various profit indicators have grown significantly. In Q1, it has shown a leap forward, with operating net profit, pre-tax net profit and after-tax net profit simultaneously setting new highs. Synnex's gross profit in Q1 was 4.7%, maintaining a record high. Operating net profit of NT$2.16 billion and net profit margin of 2.5% are all record highs. The net profit before tax was NT$3.06 billion, a growth of 40%. The PBT rate of 3.53% not only hit a record high, but also reached higher than 3% for five consecutive quarters. After-tax net profit was NT$2.54 billion, an increase of 41%, and the net profit margin was 2.93%, both of which also set a record high. Earnings per share in the first quarter were NT$1.52, a single-quarter high in 10 years.


  Looking forward to the second quarter, in terms of revenue, Synnex believes that not only will the market's sales momentum continue, but the boom in demand is expected to be even greater than in the first quarter. In terms of profitability, Synnex continues to optimize its product portfolio to drive gross profit, and through digital optimization, information concatenation, and AI big data analysis, it comprehensively improves internal operating efficiency and reduces operating expenses. With the blessings of favorable internal and external environments, Synnex is optimistic that there will be a chance to set a new record in the second quarter.