Adrian JTLDR:
- Synnex Technology International’s full year 2023 earnings saw revenues beating expectations.
- The company’s EPS was in line with analyst estimates.
Synnex Technology International reported a revenue of NT$396.0b for the full year 2023, reflecting a 6.7% decrease from the previous year. Net income decreased by 54% to NT$7.29b with a profit margin of 1.8%. The EPS dropped from NT$9.44 in FY 2022 to NT$4.37 in FY 2023.
The primary driver of revenue was the Distribution Business Group segment, contributing 70% of the total revenue. Cost of sales accounted for 96% of total revenue, impacting earnings. Sales & Marketing expenses were the highest at NT$7.28b.
Looking ahead, Synnex Technology International forecasts a 6.0% p.a. revenue growth over the next 2 years, compared to an 11% growth forecast for the Electronic industry in Taiwan. The company’s shares have seen a 6.4% increase over the past week.
However, investors should take note of the risks involved, as the company has 3 warning signs and 1 concerning factor. Valuation analysis can help determine if the stock is potentially over or undervalued.
Synnex Technology International Corporation is a distributor of IT, communication, consumer, and semiconductor products. For more detailed analysis and insights, interested parties can access our comprehensive research report.
