The share price of KCE Electronics Public Company Limited (SET: KCE) dropped 10% in the afternoon session to trade at THB 18.70 per share, following the report of rising copper prices that could weigh on the company’s cost.
Maybank Securities (Thailand) (MST) wrote that the drop in KCE was due to the recently rising copper prices caused by supply constraints. Copper prices comprise about 20% of KCE’s cost of goods sold. The firm noted that this may lead to short-term impact to KCE’s GPM in 4Q25 and 1Q26.
The rise in copper prices is expected to further exacerbate the expected impact from -2% to -3% decline in KCE’s average selling prices, which will take effect on 1 Jan 2026. However, impact on GPM from rising copper prices is not a major issue since KCE can often negotiate with customers when copper prices rise quickly (as they did in 2021-22).
Maybank maintained SELL recommendation on KCE at THB17.8, as the firm saw some concern on GPM pressure and a lackluster Western auto market.
