On Friday at 11:28 AM (Bangkok time), the share price of Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) soared by 21.48% or THB 1.45 to THB 8.20, with a trading value of THB 2.14 billion.
Yuanta Securities (Thailand) wrote that CCET recorded a net profit of THB 502 million in 1Q26. However, after excluding exchange rate and derivatives losses totaling THB 32 million, normalized profit stood at THB 534 million, representing an increase of 18.2% quarter-on-quarter but a decline of 24.2% year-on-year.
The recovery in normalized profit compared to the previous quarter was mainly due to an improved gross profit margin (GPM) and the absence of special expenses related to workforce reductions and the relocation of production facilities out of China, which had impacted the prior two quarters. Despite this quarter-on-quarter improvement, earnings were still lower year-on-year, as US dollar revenue had not yet shown significant growth.
Total revenue for the quarter was THB 29.7 billion, down 18.1% from the previous quarter and 14.4% year-on-year. Sales denominated in US dollars came in at 933 million, representing a decline of 17.4% quarter-on-quarter and 8.6% year-on-year. Although the company changed its revenue recognition method—which partly explained the drop in reported figures—overall demand remained weak in early 2026.
Signs of recovery have started to emerge, however, with the company reporting a 3.2% year-on-year increase in sales denominated in Taiwan dollars for April 2026—marking the first return to growth in several months. Yuanta expects sales to gradually recover throughout the remainder of the year, in line with an improving outlook for the electronics sector and the AI-related supply chain.
CCET achieved a gross profit margin of 5.05%, an increase of 52 basis points quarter-on-quarter but a decrease of 27 basis points year-on-year. While margins remain pressured by the strength of the Thai baht against the US dollar, efficiency gains are becoming more evident—especially in the production of new products, where previous challenges related to the learning curve and plant utilization had weighed on profitability.
Selling, general and administrative (SG&A) expenses were THB 864 million, falling 8% quarter-on-quarter and 1.5% year-on-year. Other expenses normalized after the absence of special items, compared with charges of THB 44 million in 4Q25 and THB 250 million in the third quarter. This suggests that relocation and restructuring expenses have likely peaked and should no longer have a material impact on future results.
Interest expense amounted to THB 212 million, down 16% from the previous quarter but up 16% year-on-year. There is not yet a formal estimate or recommendation for CCET, but a continued sales recovery is expected for 2Q26 and beyond, reflecting positive momentum in the global electronics industry, as per the brokerage.
Major overseas clients have started to provide more optimistic guidance, which is consistent with the company’s return to monthly sales growth. Furthermore, the pressure from baht appreciation appears to be easing, and special relocation costs have subsided. As a result, Yuanta expects CCET’s performance to continue improving through the rest of 2026.
For the full year 2026, normalized profit is projected in the range of THB 3–3.5 billion, translating to estimated earnings per share (EPS) of THB 0.29–0.33 per share. In terms of valuation, the electronics sector has experienced significant re-rating in the recent period, driven by speculative investment in global semiconductor themes. This led stocks such as HANA and KCE to fetch price-to-earnings (PER) multiples above 30–35x.
Nevertheless, investors should recognize that consumer electronics stocks usually trade at roughly 20x PER in normal circumstances. Therefore, elevated valuations must be supported by accelerated profit growth. If earnings growth cannot be sustained, it will be difficult for stock prices to maintain premium valuations in the long term.
