Synnex's(2347TW) September revenue hit a new high, the third quarter revenue increased 18% QoQ

  Synnex today announced its preliminary consolidated revenue in September 2020 was NT$32.5 billion, an increase of 10% from the same period last year. It has reached the 30 billion monthly revenue mark and hit a new high this year. The third quarter revenue was NT$89.6 billion, back to the growth trail with 2% increase compared to the same period last year, and a substantial growth of 18% from the second quarter, reaching double-digit quarter-to-quarter growth for two consecutive quarters.


  In view of the global epidemic has not been alleviated, government, corporate and personal have come up ways to cope with and get the life back on track. This makes market conditions have gradually better off. In the third quarter, Synnex experienced double-digit quarter-to-quarter growth in all regions. Among them, Taiwan’s growth rate was close to 30%, and Indonesia’s reached 50%. Australia and New Zealand has shown the most impressive performance, which not only increased by double digits QoQ, but also increased by nearly 40% YoY, setting a record high for the same period.


  From product perspective, the demand for products related to work-from-home and study-from-home, remote communication and stay-at-home economy is still the most demanded. Demand for home entertainment such as e-sports/gaming, audio and video, has grown by more than 50%. Video/wireless equipment and cloud services related to WFH/SFH have also grown by more than 30%. Laptops and tablets have achieved double-digit growth despite the interference of component shortages.


  Looking forward to the fourth quarter, although the uncertainty of the epidemic is remained, the epidemic has brought business opportunities in remote and zero-touch. At the same time, it is also accelerating the digital transformation of enterprises, further driving market demand of information and communication products. In addition, Xbox/PS5 and nVidia's new generation of gaming graphics cards will be launched in the fourth quarter; iPhone/5G mobile phones are also about to be released; and laptops/tablets are also launching new products, which will drive replacement demand. Synnex believes that the fourth quarter will have a better performance than the third quarter.