Synnex Technology International Corp (聯強國際), Asia’s largest distributor of technology products and electronics components, has set up a joint venture with Indonesia’s largest computer company as a part of its expansion in the fast-growing Asia-Pacific region and other emerging markets.
In an e-mailed statement issued on Wednesday, Synnex said it was teaming up with PT Metrodata Electronics (ME) to tap the world’s fourth most populous country.
The presence in Indonesia marks Synnex’s next international foray after establishing a presence in China, Australia, Thailand, India and Turkey.
Under the deal, Synnex will purchase all of the new shares to be issued by ME’s subsidiary, PT Metrodata E Bisnis (MEB), and take a 50 percent stake in the channel venture for 150 billion Indonesian rupiah (US$14.5 million), with MEB owning the remaining 50 percent stake, the Taipei-based company said in a stock exchange filing on Wednesday.
According to ME chief executive Susanto Djaja, the partnership will allow the Indonesian conglomerate to accumulate know-how on channel management from -Synnex, as well as expand its current product portfolios.
PC shipments in Indonesia reported 50 percent growth in the first half of the year from the same period last year, the highest growth rate among all Asia-Pacific markets, Synnex said in the statement.
“The partnership marks Synnex’s official entry into Indonesia’s IT distribution market, which may become another stronghold in Asia for Synnex,” the statement said.
The company on Wednesday, however, reported a 31.64 percent decline in consolidated revenue of NT$19.55 billion (US$640.3 million) for last month, from a record high NT$28.6 billion in September, although that was up 13.33 percent from NT$17.25 billion a year earlier, a separate statement showed.
In the first 10 months of this year, revenue totaled NT$222 billion, an increase of 23.54 percent from NT$179.7 billion in the same period of last year, driven mainly by information technology items (60 percent), communications products (18 percent) and IC components (17 percent).
Yuanta Securities Corp (元大證券) yesterday placed a “buy” rating on Synnex with a target price of NT$88, a 17.33 percent increase from Synnex’s closing price of NT$75 in Taipei trading.
The local brokerage said in a client note that it expected Synnex to benefit from collaboration between top contract makers and distributors to enter new markets.
“Synnex’s growing global distribution channel network with an emerging market focus will help strengthen its relationships with top global PC and handset brand original equipment makers,” Yuanta said in the note.
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