Serial System

Serial System: another stellar set of results , with 3Q14 revenue rising 32% y/y , and net profit surging by 51% y/y. On a 9M14, revenue and net profit have formed 81%-82% of Voyage's full yr forecasts, and the house believes the results provide strong evidence of Serial's success in its strategy to grow sales and improve profitability. The greater China market continued to drive the bulk of revenue growth, boosted by strong demand from smartphone, consumer electronics, household appliances and auto customers. Going forward, SErial continues to target the auto, mobile devices and enterprise cloud solutions sectors. In particular, Voyage sees enterprise cloud market as a potential area that Serial can expand more aggressively into, following the addition of new suppliers such as INtel, Hynix, and Western Digital. Geographically, Serial is looking to strenghten its presence in emerging markets like Vietnam and Indonesia, as well as expanding into the US and Europe markets via M&A and JV. Maintain Overweight with TP $0.21