Synnex into debt collection

SET-listed IT distributor Synnex Thailand has set aside an investment budget of 400 million baht this year to diversify into debtcollection services and industrial-grade IT products through a joint venture strategy.

The company expects its revenue to grow by 19% to 28 billion baht in 2017, its fastest pace in a decade, helped by new business opportunities and a wide variety of new smartphone and drone models.

“Our growth will outpace the overall Thai IT market, where the PC market is expected to continue contracting while local IT spending should grow in line with GDP growth,” said chief executive Sutida Mongkolsuthree.

Synnex posted a 10% increase in revenue in 2016 and a registered compound annual growth rate of 10.8% during 2000-16.

“2017 will be a significant year for us. Diversification into debt collection is set to complement Synnex’s traditional IT sales,” said Ms Sutida.

She said Synnex expects to announce its first joint venture deal in the debt collection business by March. Another deal to acquire a company manufacturing industrial-grade IT products is also expected to be accomplished this year.

Ms Sutida said the entry into industrialgrade IT products that are water-resistant and can endure high temperatures for use in factories seeks to capitalise on the rising number of organisations going for digital transformation to catch up with the government’s innovation policy for industry 4.0.

Apple Inc has appointed Synnex as the US firm’s local authorised wholesale distributor for Macbook computers, iPads and accessories, excluding iPhone. Synnex has over 6,000 dealers nationwide.

DJI, a Chinese drone maker, also appointed Synnex as its authorised distributor in Thailand.

Sales revenue of IT devices is expected to contribute 45% of total revenue in 2017, up from 30% last year. Sales revenue from smartphones would make up 25% of the total this year, up from 19% last year.

Ms Sutida said Synnex is increasing its presence in Indochina markets with the planned introduction of 50 IT product brands this year, up from 10 brands currently offered in the region.

Synnex has an office in Myanmar and is setting up a service centre in Cambodia with local partners. It also plans to have its own service centre in Laos.

SYNEX shares closed on the SET last night at 11.40 baht, down 10 satang, in trade worth 30.2 million baht.