On Wednesday at 4:09 PM (Bangkok time), the share price of KCE Electronics Public Company Limited (SET: KCE) jumped by 4.78% or THB 1.10 to THB 24.10, with a trading value of THB 1.18 billion.
Delta Electronics (Thailand) Public Company Limited (SET: DELTA) surged by 2.24% or THB 6.00 to THB 274.00, with a trading value of THB 4.62 billion.
Hana Microelectronics Public Company Limited (SET: HANA) gained 0.98% or THB 0.25 to THB 25.75, with a trading value of THB 703.39 million.
Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) rose by 0.40% or THB 0.02 to THB 4.98, with a trading value of THB 312.85 million.
CGS International Securities (Thailand) (CGSI) has revised its outlook on Thailand’s electronics sector, moving it from ‘Underweight’ to ‘Neutral’, following a more balanced risk profile regarding profit forecasts. The brokerage recommends that investors consider shifting from DELTA to smaller laggard stocks like KCE, CCET, and HANA, citing improved profit outlooks for these companies in 2026 and more attractive valuations.
Among these, KCE is identified as the top pick due to signs of recovering margins and share prices that remain below the company’s fundamentals. Although DELTA remains a primary beneficiary of AI-driven demand, its premium valuation is seen as limiting near-term upside potential.
Upside risks for the electronics sector could arise if AI-related capital expenditures surpass market expectations and semiconductor inventories in the supply chain normalize faster than anticipated. Conversely, downside risks include weakening global economic conditions and a slower-than-expected recovery in end-markets for semiconductors.
CGSI expects traditional semiconductor markets to remain subdued in the first half of 2026 due to tepid global GDP growth and continued low consumer confidence in sectors such as automotive, consumer goods, and industrials. The sector is also entering a low-demand season for technology, with capacity utilization in the first quarter of 2026 likely to be similar to the previous quarter instead of showing significant improvement.
According to Bloomberg consensus estimates, hyperscaler capital expenditure is projected to remain robust, reaching $605 billion in 2026, up 61% year-on-year. This is expected to support demand for logic and memory chips as well as other networking equipment, in addition to ongoing AI chip requirements.
CGSI’s analysis shows that demand for analog chips in automotive and industrial applications has started to stabilize, but levels remain below those seen during the sector’s prior peak in 2021–22. Non-AI segments appear to be in the early stages of recovery, with utilization rates likely to gradually increase from the second quarter of 2026 onward.
DELTA is recognized for manufacturing power management and cooling solutions for server and hyperscaler clients, with AI-related products forecast to account for approximately 50% of its revenue in 2026. Meanwhile, HANA recently established a partnership with an AI cooling startup, but this segment’s contribution is expected to be limited to about 5–10% of revenue by 2027.
CCET is engaged in the assembly of PCBA for servers and storage devices, projected to account for 15–20% of revenue in 2026. KCE, which has less involvement in the AI supply chain despite strong AI PCB demand, is focusing on expanding its portfolio in consumer electronics and high-end aerospace markets. As a result, profit growth for these Thai electronics firms is expected to rely primarily on the recovery of traditional end-markets for semiconductors.
Within this group, CGSI believes DELTA stands to benefit most from AI-driven demand, as investors monitor hyperscaler investment momentum and the company ramps up AI power and liquid-cooling product output. On the other hand, KCE’s prospects are supported by the industry’s rising average selling prices for PCBs, margin recovery with higher utilization rates, and continued robust demand from automotive electronics.
For CCET, a shift in its business model to consignment from turnkey with a major customer is expected to offset lower sales with improved gross profit margins. HANA, however, may see low utilization rates in the first half of 2026 as customers work through excess inventory, and its silicon carbide (SiC) business is projected to incur losses in early 2026, but could rebound in the second half as production quality improves and revenue from its partnership with Phononic begins to grow.
