Kasikorn Securities wrote in a research note that the ongoing conflict in the Middle East, particularly the recent escalation involving Iran, has sent shockwaves through the global supply chain for printed circuit boards (PCB), according to a recent report by Reuters.
The attack on a major petrochemical facility in Saudi Arabia has led to the suspension of PPE resin production—an essential raw material for PCB manufacturing—causing a severe supply shortage worldwide.
According to Reuters, citing Goldman Sachs, PCB prices surged dramatically by as much as 40% in April. This spike is attributed to both the acute shortage of raw materials, such as copper foil and glass fiber, and robust demand, especially from industries related to artificial intelligence (AI) and cloud computing.
Looking ahead, Prismark, an electronics industry consulting firm, projects that the global PCB market will expand by 12.5% in 2026, reflecting strong ongoing demand amid ongoing supply concerns.
Kasikorn noted that technology manufacturers like KCE Electronics PCL (SET: KCE) are facing higher input costs and uncertain supply conditions. However, the brokerage viewed this situation as a short-term positive for the sector, as companies have begun negotiating for higher selling prices and shifting focus away from product sales. Moving forward, a key challenge will be securing a sufficient supply of raw materials to maintain production levels.
As of now, KCE is trading at around THB 31.5 per share, which represents +1 standard deviation. Should there be a re-rating of the company’s valuation, allowing the stock to trade within the range of +1.5 to +2 standard deviations, the share price could range between THB 33 and THB 37.
