KCE Jumps 10% with Positive Momentum on Declining Material Costs and New Factory to Increase Capacity

The share price of KCE Electronics Public Company Limited (SET: KCE) closed the morning session at THB 55.25 per share, increased THB 5.25 or 10.50%. The highest price was THB 55.25 and the lowest was THB 50.50, with a trading value of 4.17 billion baht. The prices rose to the highest level in five months, compared with the price at THB 54.25 on August 31, 2022.

LH Securities noted in an analysis that profits in Q3/22 increased 15% QoQ and increased 8% YoY, due to a recovery of gross margin from a decline in some material costs for complicated products and the baht depreciation.

LH Securities expected the profit for Q4/22 would continue to increase from the lower material costs and more orders. KCE is preparing to build the new factory in Rojana Bowin Industrial Park, with the production capacity of 1 million square feet each month, which could help the KCE production capacity by 31% to support the long-term growth.

LH gave a “BUY” recommendation on KCE with a target price at THB 60 per share.