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Greater China Market Continues to Drive Growth: The Greater China Market accounted for the bulk of the revenue growth in 3Q over 2Q. Sales were boosted by strong demand from smartphone, consumer electronics, household appliances and automotive customers. The Greater China market has been a key growth driver for Serial and we are impressed by the strong momentum to date.
Derek Goh, CEO of Serial System, at a briefing for analysts. NextInsight file photo.Replicating Success Formula: Going forward, Serial continues to target the automotive, mobile devices and enterprise cloud solutions sectors. In particular, we see the enterprise cloud market as a potential area that Serial can expand more aggressively into, following the addition of new suppliers such as Intel, Hynix and Western Digital. Geographically, Serial is now looking at strengthening its presence in emerging markets like Vietnam and Indonesia, as well as expanding into the US and Europe markets via M&A or joint ventures.
Outlook: Serial’s ability to maintain such high growth momentum is positive. The fast growth also highlights the company’s strong execution ability having been on an acquisition spree over the last few years. In view of the strong performance, we revised our full year forecast for the company to US$1.01 bn for revenue and US$14.7 m for PATMI.
The net impact is a higher valuation of S$0.210 per share (previously S$0.205). We expect shareholders to benefit from another year of bumper dividends should the current strong profit trend continue.
Full report here.
Recent story: SERIAL SYSTEM: Another quarter of strong profit growth (50%)
