Serial System, one of the largest distributors of electronic components and consumer products in Asia, achieved its highest annual revenue in 2016 since its inception 28 years ago.

The revenue of US$1.40 billion, up from US$1.22 billion in 2015 (which was another record year), was boosted by higher distribution sales for electronic components and consumer products.

 US$'000

1Q16

2Q16

3Q16

4Q16

Revenue 

332,796

378,572

346,266

344,949

Net profit attributable to shareholders

(6,559)

3,280

3,789

4,048

Source: Company

 


Net profit for the three months ended 31 Dec 2016 rose to US$4.0 million from US$1.0 million a year earlier, driven by higher revenue from electronic components distribution in Hong Kong and China.

Stock price 

14.2 c

52-week range

11.7 – 16.4 c

PE (ttm)

20

Market cap

S$127 m

NAV

13.93 US cts

Dividend yield
(ttm)

2.46%

Year-to-date return

-0.7%

Source: Bloomberg

Earnings were also helped by a gain from the disposal of available‐for‐sale financial assets and by higher office rental income, finance income, commission income and product rebates.

Despite the improvement in overall revenue, Serial achieved a lower net profit of US$4.6 million for 2016, compared to US$11.0 million for 2015.

This was largely due to losses at the consumer products distribution business and a US$3.9 million share of losses of associates, mainly the 29.03%-owned Bull Will.

Serial has recovered from the surprise loss in 1Q2016 when it suffered a drop in gross profit margin, losses at Bull Will, currency translation losses and allowance for inventory obsolescence.

derek aug 350“The global semiconductor industry is expected to fare better in 2017 than last year, according to research group Gartner. This will bode well for our company, which will continue to explore opportunities to expand into higher‐value business segments even as we seek to keep a tight lid on costs.”

-- Dr Derek Goh, Serial System’s Executive Chairman and CEO
(NextInsight file photo) 

The Group’s net asset value as at 31 December 2016 amounted to 13.93 US cents a share, up from 13.33 US cents a share as at the end of 2015.

It had cash and cash equivalents of US$65.2 million as at the end of 2016.

The Group has proposed a final dividend of 0.17 Singapore cent a share.

Together with an interim dividend of 0.18 Singapore cent, this brings its entire FY2016 payout to 0.35 Singapore cent a share (2015: 0.85 cent a share).

For the full financial statement, click here. 


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