KCE Electronics Public Company Limited (SET: KCE) jumped 10% in early trading on Tuesday to THB74.75 after Kiatnakin Phatra Securities (KKPS) initiated coverage of the stock with a “Buy” rating. The brokerage set a price objective of THB104, pointing to an earnings recovery supported by improving demand and new growth opportunities.
KKPS said KCE is entering a stronger cycle after lagging global printed circuit board peers due to weak automotive demand. The brokerage expects a rebound in automotive orders, more advanced capacity and tighter supply conditions linked to artificial intelligence-related demand to support the company’s earnings outlook.
The securities firm forecasts KCE’s pre-exceptional earnings per share to grow 95% in 2026 and 110% in 2027. Its 2027 earnings estimate is 69% above consensus, reflecting a more optimistic view on automotive recovery, margin improvement and business expansion beyond the automotive segment.
KKPS also highlighted communication-related applications as a key future driver for KCE, particularly low-earth orbit satellite demand. The brokerage expects communication revenue from satellite applications to account for 16% of PCB revenue in 2027 and 30% in 2028, supported by incremental revenue from new factories.
In addition, KKPS identified humanoid robotics as another potential addressable market for KCE. The report noted that management has confirmed discussions with Tesla on humanoid PCB opportunities, with KCE going through the qualification process and awaiting final design.
KKPS cited key downside risks including delays in satellite project commercialization or new capacity ramp-up, weaker-than-expected margin recovery and raw-material shortages.
