Synnex Technology International Corp’s (聯強) revenue will grow 7 percent year-on-year in the third quarter, despite escalating competition, Yuanta Securities Investment Consulting Co (元大投顧) forecast.
Synnex — which distributes computers and handsets — can expect revenue of NT$90.6 billion (US$2.88 billion) this quarter from NT$84.51 billion in the same period last year, Yuanta analyst Calvin Wei (魏建發) said on Monday.
However, growth momentum is expected to diminish next quarter, while Synnex could report an annual decline of 2 percent in revenue during the slow season, he forecast.
In the first half, Synnex’s revenue expanded 12 percent annually to NT$161.1 billion, bucking the industry’s downtrend.
The company attributed the growth to market share gain and strong demand for computers and software in Indonesia and China.
Synnex, the largest electronics distributor in Asia, helps sell notebook computers, mobile phones and other electronic devices for HP Inc, Nokia Oyj, Acer Inc (宏碁), Asustek Computer Inc (華碩) and Huawei Technologies Co (華為).
However, growing competition from rivals affected the company’s gross margin last quarter, with margin falling to 3.37 percent from 3.73 percent in the first quarter.
Wei had projected a gross margin of 3.6 percent for the quarter.
Operating profit also contracted 22 percent to NT$862 million in the second quarter from NT$1.1 billion the previous quarter, a company financial statement showed.
That represents an annual reduction of 5.79 percent from the NT$915 million posted in the same period last year.
Last quarter’s operating profit was 26 percent lower than market expectations, Wei said.
Net profit fell 7.44 percent quarter-on-quarter and 13.85 percent year-on-year to NT$1.12 billion last quarter, with Wei blaming foreign-exchange losses of NT$270 million for the disappointing bottom line, as the yuan plummeted against the US dollar.
Synnex’s forex losses might improve this quarter as the yuan stabilizes, he said.
Synnex shares yesterday sank for the fifth consecutive session in Taipei trading to NT$36.35, a decline of 1.22 percent from Tuesday.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”