Synnex(2347TW) Shows Strong Momentum in Q1:Revenue Hits Record High of NT$103.6 Billion, Up 17% Annually

Benefiting from the vibrant market atmosphere fueled by the AI trend and the recovery in semiconductor demand, Synnex(2347) continued its upward momentum in the first quarter of this year, maintaining its revenue firmly above the hundred-billion-dollar mark at NT$103.6 billion, setting a new historical high for the same period, and marking a significant 17% year-on-year growth.


Among Synnex's four major business sectors, the Semiconductor business exhibited the most robust revenue momentum in the first quarter, not only experiencing a substantial 56% year-on-year growth but also surging to nearly NT$50 billion in a single quarter, once again setting a new historical record. In recent years, Synnex's Semiconductor business has achieved stable growth with the implementation of the MSP service model. Additionally, the optimism in future demand from the manufacturing sector this year has led to increased upstream markets activity and semiconductor demand, driving significant growth for Synnex's Semiconductor business and setting new records.


In the Telecom business, Synnex witnessed an impressive performance, with the first quarter revenue hitting NT$5.3 billion, the highest quarter in nearly six years, reflecting a substantial 41% year-on-year increase. The communication market, buoyed by the AI smartphone trend, witnessed a gradual resurgence in consumer demand. Furthermore, the introduction of new models by various brands intensified market competition, further heating up demand. Notably, markets in Indonesia and Hong Kong experienced growth of more than double, while Taiwan remained stable and positive.


Synnex's IT Consumer business, the revenue in the first quarter remained flat at NT$26.6 billion compared to last year. Sales of laptops, gaming, smart devices, and consumer electronics were generally stable or slightly increased compared to last year. However, there was a significant decline in DIY components such as CPUs, memory, and mainboards & graphic cards. The IT Commercial business in the first quarter saw a significant decline of 16%, with revenue totaling NT$22.6 billion. This decline was mainly due to a substantial 30% decline in network products and over 10% decline in commercial systems. However, servers, storage systems, and cloud services benefited from AI demand, with all showing growth compared to last year, with cloud services growing by more than 20%.


Regionally, Synnex observed growth in markets such as Indonesia, Hong Kong, and Australia and New Zealand, with Indonesia experiencing growth of over 20% and Hong Kong setting a new historical high with a 6% year-on-year increase. Conversely, China and Taiwan reported declines of 13% and 8%, respectively.