Serial System

Serial System: Voyage reiterates OVERWEIGHT with TP $0.205, says this is a quality business that is unnoticed by the market . Serial exceeded expectations with net profit of US$5m on revenue of US$262.9m for 2Q14. Net margin rebounded from 1% in 1Q14 to 1.9% in 2Q14, suggesting the company is starting to enjoy economies of scale following yrs of expanding its network. Going forward the company intends to : i) further target customers in the auto, mobile devices and enterprise cloud solutions businesses , and ii) execute more M&A transactions to expand market share. Serial recently announced the proposed acquisition of the distribution entities of Achieva and GSH. Accordingly the acquisitions will add new suppliers and customers to Serial's portfolio and expand the company's reach into Central Asia, Vietnma, Cambodia, Bangladesh and Australia.