Brokers See Positive Trend for Electronic Stocks as Korea Exports Perform Better

At the end of the morning session on Thursday, the share prices of electronic stocks edged higher, as they were led by Hana Microelectronics Public Company Limited (SET: HANA), with a share price of THB 39.50, an increase of 5.33% or THB 2.00, with a trading value of THB 710.19 million.

The share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) jumped by 7.87% or THB 5.25 to THB 72.00, with a trading value of THB 1,340.22 million.

The share price of KCE Electronics Public Company Limited (SET: KCE) surged by 4.55% or THB 1.75 to THB 40.25, with a trading value of THB 410.87 million.

Krungsri Capital Securities (KCS) stated that the export figures from Korea in the first 20 days of March 2024 rose by 11.2% compared to the same period last year, while contradicting the first 20 days of February 2024, which declined by 7.8% compared to the same period last year. The increase was supported by a boost in semiconductor sales.

Meanwhile, the direction of the said circumstances sent a positive sentiment, as it indicated a potential recovery in the electronic sector after encountering a short-term decline. The overall outlook showed some positive signs following a short-term impact in the EV market, and a slowdown in demand is starting to lift due to: 1) easing concerns over the Fed’s interest rates as borrowing costs are trending downward; and 2) the transition of smartphones that use AI technology will ramp up demand for electronics parts.

In addition, as the share price of electronic stocks moved in accordance with export figures from Korea and Taiwan, the analyst anticipated a positive trend for the sector to bear a new round of growth. In the short term, the analyst gave the target prices for HANA and KCE at THB 51.6 and THB 55, respectively.