Economics

World Class Efficiency At This Thai IT Wholesaler

Background

Synnex Thailand Public Company Limited is ranked as the top sales company of IT products in Thailand.

[REITS]

It engages in the distribution of computers, IT systems, and communication devices including tablet PCs, desktops, notebooks, and smartphones, as well as related components.

Synnex Thailand Public Company Limited

It sells brands ranging from Apple and Dell to HP and Canon.

Business Description

SYNEX is an affiliate of Synnex Technology International Corporation (2347 TW), which is the largest IT distribution company in the Asia-Pacific region and the third largest globally. In Thailand, the company has the no. 1 spot in sales of IT products, ranging from computers to smartphones.

The company sells all the major brands of computer, printer, and smartphone, including Dell, HP, Canon, Epson, Huawei, and soon Apple. The group sells to IT retailers and wholesalers, software solution providers, department stores, and other retailers.

Synnex sells all the major brands including #Dell, #HP, #Huawei, and #Apple

In 2016, computers and other IT systems and related computer components accounted for 30% of sales, while smartphones were around 20%. SYNEX has projected that this year these two divisions combined should rise to about 75% of revenue from 50%, supported by the recent authorized wholesaler contract signed with Apple.

SYNEX also sells printers and related components and consumables, and network products such as routers and switches.

Leadership

Supant Mongkolsuthree has held multiple positions at Synnex and other companies. Since 1988, he has served as Chairman, President, and CEO of Synnex. While he still holds his position as Chairman and President, he has passed on the position of CEO to Sutida Mongkolsuthree in 2014. Mr. Mongkolsuthree has obtained multiple qualifications including a Bachelors degree, two Masters degrees, and an honorary Doctorate from Ramkhamhaeng University, Thailand.

Synnex #Thailand has been run by the Mongkolsuthree family since 1988

Suthida Mongkolsuthree is the current CEO of Synnex. She has served as CFO and Vice President at Synnex for multiple years before taking on the role of CEO in 2014. She holds Bachelor of Administration in Finance and Banking from Chulalongkorn University and MS in International management from Queen Mary, University of London, UK.

World Class Benchmarking

Profitable Growth has been stable at #5 since 2015. Synnex ranked in the average decile among 680 large Information Technology companies globally.

Profitability has been slowly improving but still ranked average. Growth rebounded in 2015 and has stayed above average since.

Profitable Growth has been stable at no. 5 since 2015 for Synnex #Thailand

Asset utilization has been consistently excellent at #1. However, low Profit margin has kept down Profitability.

Sales growth have improved a lot and ranked in the top 10% in the past 12 months while Margin change experienced a small drop and ranked #6.

Article by Dr. Andrew Stotz, Become A Better Investor