Synnex eyes acquisitions,     joint ventures for growth

synnex eyes acquisitions,      joint ventures for growth

Ms Sutida says Synnex expects to see a revenue growth of 12-15% year-on-year to more than 40 billion baht in 2022.

SET-listed IT product distributor Synnex Thailand plans to pursue acquisitions and joint ventures with others associated with cybersecurity, data-driven business, robotics and electric vehicles (EV) to drive growth.

It also vowed to focus more on service-related business as well as device rental operation.

The firm said the move is aimed at strengthening its position as “No.1 IT ecosystem”, capitalising on the 870-billion-baht ICT market in Thailand.

So far, the company’s business has been crucially engaged with ICT hardware, smartphones and networking space.

“This year, the company’s revenue is expected to grow 12-15% year-on-year to reach a record high of more than 40 billion baht, thanks to IT enterprise spending and IT megaprojects in government and retail sectors,” said Sutida Mongkolsuthree, chief executive of Synnex Thailand.

She was speaking yesterday at the Synnex Partner Connect 2022 event which up to 400 dealers attended.

The company normally sees high season for IT spending in the fourth quarter while the iPhone 14 lineup came to the market earlier than previous years.

Demand for consumer IT products slowed slightly due to economic headwinds and people returning to work, she said.

Some 40% of the firm’s revenue comes from consumer IT products, 20% from mobile phones and the rest from commercial and enterprise sectors.

Ms Sutida said the supply chain crunch has been easing and the company is resorting to foreign exchange hedging amid the weaker baht.

She said Synnex has more than 60 IT brands and more will be added, particularly in the gaming segment which is worth 38 billion baht in market value.

The company has stepped in to provide rental services or pay-per-use subscription services for IT products, such as printers and notebooks with contracts of 3-5 years through dealers.

The firm aims to gain 10 billion baht from the online business-to-business segment through dealers, up from 3 billion now.

Ms Sutida said Synnex is also pursuing inorganic growth through joint ventures and acquisition in data-driven business and technologies, similar to the company forming a joint venture with SCB 10X to provide second-hand IT marketplace Swopmart.

The firm also invested 25% in cyberthron, a cybersecurity service provider, with a cost of 55 million baht.

“Internet of Things, robotics, EV and green IT features are all of interest. We are open for every opportunity. Any deals worth 100 million baht or more need to be approved by the firm’s board,” she said.

With more services and investment, the company expects to see its gross profit margin reach 7% in the future.