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Serial System's Q1 net profit up 45%, continues to explore M&As

IT-related Serial System reported on Wednesday that its net profit for the first quarter ended March 31, 2015 rose 45 per cent from a year ago to US$3.06 million.

Earnings per share stood at 0.34 US cents, compared to 0.24 US cents a year ago.

Sales rose 23 per cent to US$261.76 million. Serial I-Tech Group, which was acquired on December 31, 2014, contributed about US$15 million or 6 per cent to turnover.

Turnover in most of its markets including China, Hong Kong, Taiwan and South Korea improved, but sales in Japan posted a 43 per cent fall due to stiffer competition.

"Traditionally, the first quarter of the financial year is the weakest quarter due to the festive period. With a good set of 1Q2015 results, barring any unforeseen circumstances, the Board of Directors is reasonably confident that the financial performance for HY2015 in terms of both revenue and gross profit on a year-on-year basis would be better than that of HY2014,'' Serial said.

The group will continue to pursue organic growth of its core electronic components distribution business through the expansion of its product line, customer base and distribution network. It also aims to extend its distribution value chain through the addition of finished consumer products.

"Besides expanding into new geographies, the group intends to leverage on its established distribution network and strong customer and supplier relationships to position itself as a solution provider to source and distribute finished consumer products to its customers,'' Serial said.

Opportunities in mergers and acquisitions to add long-term value to its shareholders will also be explored.