10.03.2001
Synnex announces share buy back plan

• Development: Synnex, Taiwan’s no.1 PC distributor, announced a plan to buy back 10m shares between NT$30 - 40 on a budget of up to NT$350m. The plan is aimed at supporting a share price which has fallen to near historical lows.

• Analysis: The share price has declined on a downward revision of company forecasts last week, on the back of deteriorating performance of stock holdings. Typhoon Nari and fewer working days in Sept. have also soured the business outlook. We have revised down our 2001 net income forecast by 26%, for EPS of NT$2.50 in FY01.

• Primasia View: We believe Synnex possesses the strongest fundamentals among rivals, and continue to hold a positive view on firm’s future outlook.