KCE Electronics Public Company Limited (SET: KCE) reported a robust second quarter for 2026, with net profit soaring 51.5% year-over-year to Bt275.9 million. Total revenue reached Bt3,674.7 million, marking a 9.9% increase over the same period last year. The results underscore a successful strategic pivot toward higher-margin technologies, which allowed the company to outpace a volatile raw material environment.
Key Financial Highlights
- Net Profit: Bt275.9 million (+51.5% YoY)
- Total Revenue: Bt3,674.7 million (+9.9% YoY)
- Gross Margin: 18.9% (up from 18.1% in 2Q25)
- Debt-to-Equity Ratio: 0.11x
The engine of growth for KCE remains its High-Density Interconnect (HDI) segment, where sales surged 19.9% year-over-year. This technologically advanced unit now represents a critical portion of the product mix, offsetting weakness in legacy segments such as 2-layer PCBs, which saw sales contract by 11.5%. While shipment volumes increased modestly by 2.1%, the shift toward higher-value products drove a 3.3% increase in U.S. dollar-denominated sales value. Capacity utilization for the quarter averaged 65%, impacted by seasonal holidays and temporary power disruptions caused by storms.
Profitability was bolstered by favorable foreign exchange movements as the Thai Baht depreciated against the U.S. Dollar, aiding export revenue translation. However, these gains were partially tempered by soaring input costs. Copper prices alone increased product costs by 4.05% compared to the previous year. Furthermore, a global shortage of fiberglass—diverted to AI-related applications—forced laminate prices up by 15% to 30%. KCE mitigated these pressures through its subsidiary, Thai Laminate Manufacturer, which supplied 70% of the Group’s requirements at competitive costs.
KCE maintains a fortress balance sheet with a net interest-bearing debt-to-equity ratio of just 0.11 times. Basic earnings per share (EPS) climbed to Bt0.23, up from Bt0.15 a year ago.
Looking ahead, management is moving to protect margins through product-based pricing adjustments implemented in late June, which are expected to yield cost recoveries starting in 3Q26. Additionally, the company has streamlined its corporate structure by dissolving an inactive subsidiary, Chemtronic Chemical, to enhance administrative efficiency.
