Maybank Says KCE Has Priced-In Machinery Issues as Purchase Orders Remain Strong

The share price of KCE Electronics Public Company Limited (SET: KCE) made a record high at THB95 on November 16, 2021, and had been on a downtrend since amid weak momentum of electronics stocks and its issues on machinery that slowed down the production, causing the share price to plunge to THB53.50 in early March 2022.


However, the price has been recovering since then. Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on KCE with a target price at THB70, stating that the current share price is considered priced in the issues about machinery in the early stages of production capacity expansion. Meanwhile, the purchase orders are still significant, combined with the direction of the baht that continued to depreciate. This should be a good time to gradually accumulate stocks to capture the increase in production capacity in the next period.