Synnex (Thailand) Public Company Limited

SYNNEX (Thailand) Public Company Limited, or SYNNEX, has launched the "AI Hub" in Thailand, built on AWS's cloud and AI infrastructure under the concept of "Empowering Thailand's AI Transformation." The goal is to enable Thai organizations, from SMEs to enterprises, to quickly access, experiment with, and scale AI, turning AI potential into measurable business impact. The AI Hub comprises five pillars: Partner AI Solutions, Partner AI Delivery Capability, Internal Adoption of AI, Funding for AI Competency Partners, and Technology Showcase. SYNNEX reports that it has implemented AI internally in nearly 90 use cases, boosting productivity by 55%, reducing work time by 59%, and cutting errors by 60%. Meanwhile, 94% of employees use AI at least once a week. The AI Hub is driven by three mechanisms: AI Accessibility, Market Acceleration, and Local Expertise, to shorten the path from technology to business outcomes.

SYNEX has expressed confidence that total revenue this year will reach its target of 53 billion baht, supported by the AI trend and digital transformation investment from both the public and private sectors, as well as new product launches from key brands such as Apple during the high season in the second half of the year. Ms. Suthida Mongkolsuthi, Chief Executive Officer of Synnex Thailand Public Company Limited, said that second-half operating results will grow better than the first half due to demand for hardware upgrades to support AI and new smartphone releases. Most recently, the company has partnered with Amazon Web Services Thailand Company Limited, or AWS, to launch an AI Hub in Thailand under the concept of Empowering Thailand's AI Transformation, driven by three key mechanisms: AI Accessibility, Market Acceleration, and Local Expertise. It is also laying the foundation for growth through five main pillars covering Partner AI Solutions, Partner AI Delivery Capability, Internal Adoption of AI, Funding for AI Competency Partners, and Technology Showcase. SYNNEX stated that applying AI internally across nearly 90 use cases has helped increase productivity by up to 55 percent and reduce errors by 60 percent. Mr. Watson Thirapatpong, Country Manager of AWS for Thailand, added that this collaboration will help Thai organizations scale their AI adoption efficiently.

Netcap Public Company Limited, or NCAP, reported net profit for the second quarter of fiscal year 2026 at 196.6 million baht, up 9.7% from the previous quarter and 34% from a year earlier, supported by higher interest income as motorcycle loans expanded 7.34% since the start of the year. Net interest margin stood at 13.7%, improving slightly from 13.5% at the end of 2025, while financial costs fell to 2.3% from 2.5% due to debenture repayments. Asset quality continued to improve, with non-performing loans declining to 1.28% from 1.72% at the end of 2025 and 1.83% at the end of 2024. As a result, provisioning dropped 12.6% from a year earlier to 102.79 million baht, partly helped by a reversal of 10 million baht in excess reserves previously set aside for flood risk in Hat Yai. The coverage ratio at the end of the period was 366%, close to large non-bank peers. The company expects full-year loan growth of up to 15%, driven by expansion into new areas and dealer networks, especially in the north, and expects net interest margin could reach 14%. Asset quality remains under control, with a target of keeping non-performing loans no higher than in the second quarter of fiscal year 2026. Major shareholders COM7 and SYNNEX hold 34.3% and 27.0% respectively, strengthening the company's technology and funding capabilities. The stock trades at a price-to-earnings ratio of only 7.5 times, below the sector average of 12 times. Analysts at ASL recommend buying, with support at 3.60 to 3.58 baht and resistance at 3.72, 3.84, and 3.96 to 4 baht.

Synnex Thailand Public Company Limited, or SYNEX, reported net profit for the second quarter and the first six months of 2026 grew 17.8% and 17.7% respectively from the same periods last year, significantly outpacing revenue growth. The company also announced an interim dividend of 0.10 baht per share. Chief Executive Officer Suthida Mongkolsuthi said the results reflect the success of its product mix enhancement strategy and growth in the IT commercial and enterprise solution segments, which are high value-added businesses. The company is pressing ahead with new growth engines including AI infrastructure, cloud, energy solutions, and device-as-a-service, alongside expanding partnerships with global allies.

SYNEX held an analyst meeting to outline its second-half plan, focusing on expanding its New Growth Engine through AI infrastructure, cloud, energy solutions, and device-as-a-service to increase recurring revenue and broaden its enterprise and public-sector markets. The company expects clearer progress on its business transformation and continues to expand its technology ecosystem through global technology partners toward its goal of becoming the number one IT ecosystem in Thailand. For the first half, net profit was 445 million baht, up 17.7 percent from a year earlier, while second-quarter net profit was 224 million baht, up 17.8 percent. The company also announced an interim dividend of 0.10 baht per share.

SYNEX has set its second-half strategy to expand its New Growth Engine business, covering AI Infrastructure, Cloud, Energy Solution, and Device-as-a-Service, to increase the share of higher value-added revenue. Mr. Panya Poonpermpoonsiri, Chief Executive Officer of Sales and Marketing, said in an earnings call that new business groups delivered standout growth in the first six months. IT Commercial grew 49% from AI PCs and enterprise customer projects, Enterprise grew 14% from Energy Solution, while Solar grew 913%, Inverter grew 1,751%, Software & Cloud grew 9%, IT Security grew 81%, Gaming & Gadget grew 38%, and Wearable grew 113%. The company is moving forward with end-to-end AI Infrastructure, from AI servers, storage, networking, and cloud through to AI solutions and managed services, while accelerating its cloud business with AWS, targeting 2026 revenue to grow tenfold from 2025, and expanding energy infrastructure into solar energy solutions, energy storage solutions, and project and after-sales services. Another key strategy is increasing recurring revenue through Device-as-a-Service, which has recently been extended to Samsung Ready – AI-Powered Device-as-a-Service, supporting customers in enterprise, financial services, healthcare, manufacturing, education, and government. Ms. Natnicha Thurakit, Chief Financial Officer, said the company continues to maintain financial strength and aims to enhance profitability while managing its product mix and expanding its technology ecosystem through partnerships with global partners to drive toward its goal of being the No.1 IT Ecosystem in Thailand.

The Ministry of Finance is preparing to provide a grant of 50,000 baht per household to those joining the Solar Rooftop program, against an average installation cost of around 100,000 to 150,000 baht per household, with a minimum installation size of 5 kilowatts. The project aims to assist 500,000 to 1,000,000 households with average monthly electricity bills of 3,000 to 4,000 baht, using a budget from a 200 billion baht loan source. Analysts at TTB Wealth Securities stated that this policy will directly benefit Gunkul Engineering, as well as building material and home improvement retailers such as Home Product Center, Siam Global House, and Do Home. Meanwhile, analysts at Land and Houses Securities view it as a positive factor for GUNKUL and Synnex Thailand shares. In addition, the Ministry of Finance is collaborating with the Ministry of Interior, the Metropolitan Electricity Authority, the Provincial Electricity Authority, and state specialized financial institutions, namely the Government Savings Bank and the Government Housing Bank, to support low-interest loans for the remaining costs not covered by the government subsidy.

Gulf Energy Development Public Company Limited, or GULF, reported a record-high operating profit of 12.3 billion baht in the second quarter of 2026, up 74% from the same period last year, driven by its energy business and share of profit from ADVANC. In the second half, it plans to start commercial operation of an additional 700 megawatts of power plants and targets 12-15% growth in total revenue and EBITDA this year. ADVANC announced a second-quarter 2026 profit of 13.7 billion baht, up 25%, with its 5G user base surpassing 19.7 million and an interim dividend of 8.69 baht per share. TRUE is still awaiting clarity on the China Mobile issue. OR swung to a loss of over 1.77 billion baht in the second quarter of 2026 due to inventory valuation losses from falling global oil prices, even though revenue grew to 205 billion baht and Cafe Amazon achieved record sales of 117 million cups. MEDEZE reaffirmed its leadership in stem cell banking with international standards. NER is confident that third-quarter 2026 results will recover in line with rubber prices, despite cutting its sales volume target to 440,000-450,000 tons while maintaining its 2026 revenue target of 30 billion baht. KUN reported first-half revenue of 278 million baht, up 40%, driven by demand for detached houses priced at 5 million baht and above. TEKA reported a 66.8% surge in first-half 2026 profit to 40.46 million baht, with revenue exceeding one billion baht. SYNEX announced a second-quarter 2026 net profit of 224 million baht, up 17.8%, and an interim dividend of 0.10 baht per share, with the XD date set for August 19. PCE is confident that the palm oil industry will be supported by global palm prices and B7-B20 policies. TMI is accelerating resolution of power plant issues and sustaining its lighting equipment business. SPVI is unfazed by Apple's iPhone price adjustments, noting that it supports margins through selling price adjustments. POLY is benefiting from TOYOTA's sales dominance in the Thai auto market, pushing the revenue share of its automotive group past 60%. ALPHAX is expanding into the Lao financial sector with digital transformation and AI. AURA is preparing to offer its first bond issuance of 2026 to expand its gold ornament sale-with-repurchase portfolio.

SYNEX reported a net profit of 445 million baht for the first half of 2026, an increase of 17.7% from the same period last year, and announced an interim dividend payment of 0.10 baht per share. The ex-dividend date is set for August 19, 2026, with payment on September 2, 2026. For the second quarter of 2026, the company posted a net profit of 224 million baht, up 17.8% year-on-year, and revenue from sales and services of 11.81 billion baht, up 1.3%. This brought total revenue for the first six months to 23.122 billion baht, an increase of 1.3%. Profit growth was driven by the IT Commercial and Enterprise Solution businesses, which grew 43.1% and 11.3% respectively and accounted for more than 20% of total revenue in the second quarter. The company also improved its gross profit margin to 3.96%, nearing the 4.0% target for 2026, while continuing to expand its AI Infrastructure, Cloud, and Energy Solution businesses as long-term growth drivers.

Leading securities firms have raised their positive outlook on SYNEX after second-quarter 2026 net profit came in better than expected. Bualuang Securities gave the highest target price of THB 12.60 with a buy recommendation, as did Finansia Syrus Securities at THB 12.50, while KGI Securities and TISCO Securities set targets at THB 11.00. Krungsri Securities maintained a hold rating at THB 10.20. Net profit for the quarter was THB 223 million, up 17 percent from a year earlier, with normalised profit at approximately THB 197 to 234 million, growing 19 to 20 percent year-on-year. This was supported by strong growth in other revenue segments, offsetting an 11 to 13 percent decline in Apple product sales due to supply issues. Gross margin improved to 3.96 to 4.00 percent, and share of profit from NCAP rose 33 percent to THB 50 million. Finance costs dropped significantly by 38.6 percent to THB 25 million. The company also announced an interim dividend of THB 0.10 per share and expects normalised profit for 2026 to grow 8 to 12 percent from the previous year. However, risks remain from inventory rising 22 percent quarter-on-quarter to THB 5.75 billion and overdue receivables beyond 12 months increasing by THB 25 million to THB 489 million.

Pi Securities assesses that Thai stocks have a chance to outperform amid volatility in tech stocks and surging crude oil prices. The Dow Jones Industrial Average closed down 1,153 points, or 2.2 percent, pressured by semiconductor stocks and inflation concerns. Meanwhile, Brent crude oil prices rose 7.9 percent due to tensions in the Middle East, prompting a rotation from tech stocks into value stocks and Thai energy plays such as PTT and PTTEP. Pi Securities also recommends SYNEX with a target price of 11.10 baht and HMPRO with a target price of 7.50 baht, and estimates the SET Index range for the day at 1,600 to 1,640 points.