Serial System

Serial System: Positive set of 1Q14 results last wk , with revenue and net profit growing 24% and 31% y/y. Growth was driven by strong demand from a leading Chinese domestic manufacturer, which accelerated its product rollout. The customer is in the smartphone/TV and router manufacturing business, and may continue to see robust demand as it expands beyond China. Voyage sees sustained momentum by Serial with revenue exceeding US$200m per quarter since 2Q13. Since Feb, Serial has announced JVs with two more design firms to widen its capabilities in assembled moduled to the auto and security industries. A third JV has been set up btwn Serial and Nippon Denka in S'pore , possibly to extend the co's pdt range in SE Asia. The house maintains its Overweight rating with TP $0.205.