On Monday at 4:09 PM (Bangkok time), the share price of Synnex (Thailand) Public Company Limited (SET: SYNEX) gained 2.66% or THB 0.25 to THB 9.65, with a trading value of THB 68.49 million.
Yuanta Securities (Thailand) projects that SYNEX will report a solid performance in the second quarter of 2026, scheduled to be announced on August 5, with normalized profit expected to reach THB 187 million, marking a 5% increase quarter-on-quarter and a 13% rise year-on-year. This growth is attributed to a sustained high gross profit margin and continued growth in profits from associated companies.
Core revenue for the quarter is estimated at THB 12 billion, reflecting a 6% increase quarter-on-quarter and a 3% rise year-on-year. Although Apple product supply constraints continue to limit growth, the Commercial IT segment remains strong, with robust sales expansion.
The gross profit margin is anticipated to stand at 3.9%, up 3 basis points quarter-on-quarter and 7 basis points year-on-year, supported by inventory gains during periods of rising product prices. Selling, general, and administrative expenses are projected at THB 270 million, up 5% quarter-on-quarter but stable year-on-year, indicating efficient cost control.
Profits shared from joint ventures are expected to reach THB 49 million, a 5% rise from the previous quarter and a 30% surge year-on-year. This improvement is driven by the rebound in NCAP’s lending activities as competition in the hire purchase sector has eased, coupled with improved loan yields and a decline in financial costs, losses from repossessed vehicle sales, and provision expenses.
Looking ahead to 2H26, the company faces increasing challenges, but new product launches are expected to support market recovery. SYNEX’s sales in 1H26 are estimated at THB 23 billion, representing approximately 44% of the company’s full-year sales target of THB 53 billion. Despite the year-to-date figure being relatively low, the second half typically marks the industry’s high season, and several new IT product releases could help the company achieve its annual target, even amidst increased product prices.
On the demand side, purchasing power is expected to gradually improve, supported by the ‘Thai Chuay Thai Plus’ stimulus measures, renewed government investment—particularly in infrastructure and digital projects—and declining energy prices following an easing of tensions in the Middle East. These factors are likely to boost IT spending in the latter half of the year.
On the supply side, persistent shortages of Apple products have hampered availability in the first half of 2026. Should production constraints ease, the return of adequate supply could further support sales during the high season.
However, a key risk remains the upward trend in IT product prices, especially those using memory components. ADATA Technology recently stated that major memory producers have informed customers to prepare for a quarter-on-quarter increase in DRAM contract prices of 20-30% and a 35-40% rise for NAND Flash. This ongoing upward pricing cycle presents a significant test for SYNEX’s ability to manage inventory pricing and maintain profit margins through the remainder of the year.
As a result, the brokerage maintains a ‘Trading’ recommendation for SYNEX, with a target price of THB 10.80 per share.
