Serial System eyes US$1b sales by end of year

Singapore

SERIAL System expects to hit its US$1 billion revenue target by the end of this financial year. This comes as the electronic-parts seller on Tuesday reported a 50 per cent boost in net profit for the third quarter compared to a year ago, on higher sales.

Net profit for the three months ended Sept 30, 2014 stood at US$4.32 million, up from US$2.87 million. This translated to earnings per share of 0.49 US cents, up from 0.32 US cents a year ago.

Sales for the quarter rose 32 per cent to US$293 million, thanks to strong sales in China to smartphone, consumer electronics, household appliances and automotive customers.

This also cushioned declines in sales in Japan, South Korea and Taiwan, as a result of stiffer market competition. North Asia accounted for 85 per cent of the group's turnover in the quarter.

But the group's gross profit margin declined to 8.4 per cent in the quarter, compared to 8.8 per cent a year ago, as Serial's Greater China and Singapore subsidiaries posted higher sales of lower-margin products.

Gross profit margin of the company's South Korea and Taiwan subsidiaries also declined due to stiffer competition in the market.

Still, total expenses grew at a slower pace compared to its sales. This rose 17 per cent to US$19.8 million.

Year to date, Serial has registered a 28 per cent boost in sales to US$768 million, taking its net profit to US$11.4 million. This was up 40 per cent from a year ago.

Shares of Serial gained 0.1 Singapore cent to end at S$0.132.