The SET-listed Synnex (Thailand) Plc (SYNEX), the computer accessories and components trader, projects revenue growth of 12-15% this year, in line with strong domestic demand for information technology (IT) devices.
Third-generation (3G) broadband service, which will be fully operational nationwide this year, is expected to stimulate the use of IT products.
Chief executive Supant Mongkolsuthree said the overall IT market is expected to grow by 10%, but the company will likely perform better than the average.
He said Synnex's revenue rose to 22 billion baht last year from 20 billion in 2011, slightly below its target because of a drop in sales of notebook computers.
Its gross profit margin last year was 3-5% and net profit margin 1-2%.
Mr Supant said smartphones and tablets will remain the most popular products this year amid even fiercer price competition.
The tablet market will see volume grow by 20%, but prices will be much lower at only 5,000 to 6,000 baht a unit except for iPads and iPhones, he said.
"The tablet market will rise quickly, as the modern family will buy for their children thanks to the government's One Tablet per Child scheme," Mr Supant said.
He said smartphones sales will also increase but prices will fall, while operating systems, software development and designs will be important factors for consumers.
The arrival of 3G and greater app development will support smartphone growth, which will also be helped by a rise in consumption power in line with the economy and the daily minimum wage hike nationwide, said Mr Supant.
Operating systems such as Microsoft's Windows 8, Android and iOS of Apple will be developed alongside redesigns and user-friendly content.
However, Android will take a large market share, as it is developing quickly with competitive pricing, Mr Supant said.
While notebook sales have fallen 30% over the past two years due to the impact of the emerging tablet market, they should rise by 10-15% this year with the advent of smaller touch slide screens.
Synnex is looking to grasp opportunities in Myanmar, where it has already set up a subsidiary with a local partner.
The IT distributor in Yangon is expected to have sales revenue of up to 1 billion baht in the next three years.
"The Myanmar market has much room to grow, as its population is more than half of Thailand's," said Mr Supant.
Synnex also will open a sales office in Cambodia this year to capture the government sector. It also plans to appoint a distributor in Laos this year.
Shares of SYNEX closed yesterday on the SET at 5.70 baht, down 5 satang, in light trade worth 300,000 baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter