09.10.2001
Synnex and Acer Sertek endure bankrupt client

• Development: PC distribution leader, Synnex, and no. 2 player Acer Sertek (2353) reported unrecoverable accounts receivable from Digital Inventec (unlisted), a PC distributor and systems integrator which announced bankruptcy last weekend.

• Analysis: Digital Inventec owed Synnex NT$19m and Acer Sertek NT$11m, likely unrecoverable. Synnex’s loss per share is an insignificant NT$0.03. However, risk on receivables continues to be high as economic conditions remain poor.

• Primasia View: Since 90% of Synnex’s revenue is generated from contracted distributors and financially stable major players, we believe company is prepared to manage risk.