On Wednesday at 3:08 PM (Bangkok time), the share price of Hana Microelectronics Public Company Limited (SET: HANA) jumped by 16.53% or THB 3.90 to THB 27.50, with a trading value of THB 1.75 billion.
Delta Electronics (Thailand) Public Company Limited (SET: DELTA) surged by 9.47% or THB 25.00 to THB 289.00, with a trading value of THB 7.63 billion.
KCE Electronics Public Company Limited (SET: KCE) escalated by 11.71% or THB 2.40 to THB 22.90, with a trading value of THB 1.01 billion.
Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) grew by 7.93% or THB 0.36 to THB 4.90, with a trading value of THB 202.14 million.
InnovestX Securities noted a significant rally in the electronics sector, attributed to expectations that the ongoing Middle East conflict will begin to ease, a depreciation in the Thai baht, and a generally positive sentiment following the strong performance of technology stocks in markets such as South Korea and Taiwan, which have risen by 2.2% to 2.7%.
The brokerage believes that Thai electronics companies are relatively insulated from increases in electricity and shipping costs. Electricity expenses account for only 1-5% of their total costs, while shipping accounts for approximately 1-3% of total revenue.
This is largely because most companies in the sector operate under Free On Board (FOB) contracts, where the seller is responsible for delivering goods onto the vessel at the port of shipment, after which costs and responsibilities transfer to the buyer.
Overall, InnovestX maintains its ‘Outperform’ recommendation for HANA, with a target price of THB 25.5 per share, designating it as the sector’s top pick, with new S-curve products, particularly those linked to artificial intelligence, anticipated to significantly drive profits over the next two to three years.
For DELTA, a ‘Neutral’ recommendation remains in place, with a target price of THB 220 per share, as there is continued growth in AI-related products, but valuations remain elevated. Conversely, KCE is rated ‘Underperform’, with a target price of THB 14.3 per share, as operating results remain pressured by high gold and copper costs, though the weakening baht offers some compensation.
