Thailand’s KCE Shares Drop 5% on Fourth-Quarter Earnings Miss

Wednesday saw a sharp decline in the share price of Thailand’s KCE after the release of disappointing earnings reports.

As of 10:50 a.m. (Thai time), the share price of KCE Electronics Pcl. (SET:KCE) decreased by THB2.75 per share, or 4.82%, to THB54.25 per share, for a total trading value of THB1,716 million.

In 2022, KCE reported a net profit of THB2,317.2 million or 12.6% of sales, compared with 2021 net profit of THB2,426.3 million or 16.2% of sales, decreasing 4.5% year-on-year. The decrease was mainly due to the global economic recession in 2022 that greatly affected sales and product costs.

Meanwhile, KCE’s net profit in 4Q22 was THB500 million, down 29% YoY and 24% QoQ and below market forecasts of THB650 million.

Capital Nomura Securities was disappointed with KCE’s profits report, stating that the 4Q22 performance fell short of its projection of THB548 million. And that CNS analysts have now downgraded KCE’s stock from Neutral to “Under Review.”

CNS forecasted that KCE’s profitability would drop both year over year and quarter over quarter in 1Q23 due to slowing demand and the continued strengthening of the baht, which would lead to increased costs.