Thai Electronic Parts Producers Rally as Nasdaq Hits New High, KCE Upgrades Outlook

Thai electronic part manufacturers saw their stock prices rise on Thursday in response to the fresh record set by Wall Street’s tech-heavy Nasdaq composite.

KCE Electronics Public Company Limited (SET: KCE) rose THB2.25 or 5.39% to close the morning session at THB44.00 per share. Hana Microelectronics Public Company Limited (SET: HANA) gained THB1.75 or 3.78% to THB48.00 per share. Meanwhile, Delta Electronics (Thailand) Public Company Limited (SET: DELTA) increased THB2.00 or 2.42% to THB84.75 per share.


The S&P 500 reached record highs on Wednesday during a shortened trading session, with investors largely overlooking lackluster economic data. The broad market index climbed 0.51% to close at 5,537.02. Meanwhile, the Nasdaq Composite surged by 0.88% to finish the session at 18,188.30, driven by the strong performance of mega-cap technology companies like Tesla and Nvidia, which saw significant gains. Both indices achieved new all-time highs during the session and closed at record levels.

On the other hand, the Dow Jones Industrial Average declined by 23.85 points or 0.06%, settling at 39,308.00. The 30-stock index was negatively impacted by a nearly 1.7% decrease in UnitedHealth’s stock price.


Meanwhile, KCE received a slight boost after new guidance from the management. CGS International Securities (Thailand) wrote in a note that the new guidance pointed to a slight improvement in sales QoQ at low to mid single digit in 2Q24F, which is relatively inline with the broker’s estimate of 5% QoQ rise.

However, gross margin is likely to improve by 1.5-2 percentage points QoQ, according to the management. This tops CGSI’s forecast for a gain of 0.9 percentage point QoQ. This is driven by ongoing cost savings, lower material costs and favourable foreign exchange rates.

CGSI added that it sees about 5% upside to its original core net profit forecast of THB513 million (+60% YoY, +22% QoQ), following the change in guidance.