Globlex Securities noted that Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) reported a net profit of THB 502 million in 1Q26. While this figure marks a 33% increase quarter-on-quarter, it represents a 17% decline year-on-year, reflecting continuing challenges as the company navigates a strategic shift in its business model.
Total revenues fell to THB 29.7 billion, down 18% quarter-on-quarter and 14% year-on-year, primarily due to reduced sales in smart wearable devices and storage products. These declines resulted from adjustments to both product and business models.
Despite the revenue drop, CCET’s operational efficiency was evident as its EBITDA margin improved to 3.9% in 1Q26, up from 3.3% in the previous quarter and 3.7% the year before. However, the improvement was partially offset by a lower gross profit margin and increased financial costs, which surged by 20% year-on-year to THB 91 million, attributed to higher bank borrowings for expansion.
CCET’s expansion roadmap remains on track, with three new production plants launched since 2025. According to Globlex, these facilities—in Mahachai (Thailand), Phetburi (Thailand), and São Paulo (Brazil)—are expected to drive revenue and net profit growth from 2026 onwards. The Mahachai plant focuses on Solid State Drive (SSD) manufacturing; Phetburi specializes in laser printers; and the São Paulo site produces both SSDs and other products.
Looking ahead, the outlook for CCET appears positive. The company’s commitment to operational agility, including the flexibility to shift production among its facilities in Thailand, the Philippines, Brazil, and the United States, positions it to respond effectively to market changes. Notably, CCET is planning new production plants in the U.S. and is set to commence operations at its new Brazilian facility shortly.
Globlex maintains a positive view on CCET’s growth prospects, emphasizing that any margin pressures from lower sales or FX losses should be offset by increased efficiency from plant relocations and automation. The use of fully automated manufacturing sites and the ability to partially pass through costs to customers are expected to support profitability.
Reflecting confidence in CCET’s long-term potential, the brokerage maintains a ‘Buy’ rating on the stock and raises the target price from THB 5.90 to THB 7.50, using a valuation of 30x 2026 P/E.
CCET is seen as well-positioned to benefit from the AI industry boom, particularly through demand for flash memory and a robust portfolio of hardware products. The company’s diversified production base, nimble operations, and strong risk management are cited as key strengths for navigating the evolving electronics landscape.
At the end of the trading session on Wednesday, CCET’s share price settled at THB 6.45 per share, representing an increase of THB 0.50 or 8.40%, with a trading value of THB 1.46 billion.
