KCE Electronics Public Company Limited (SET: KCE) delivered solid bottom-line growth in the third quarter of 2025 (3Q25), with consolidated net profit rising 37.5% year-on-year (YoY) to THB 297.4 million, up from THB 216.3 million in 3Q24. The net profit margin expanded notably to 8.6% of total sales, compared to 5.7% in the same period last year.
This strong profit growth came despite an 8.6% YoY drop in total revenue to THB 3,519.9 million, down from THB 3,852.1 million in 3Q24. The decline was primarily due to the appreciation of the Thai baht against the U.S. dollar, which negatively affected revenue translation by approximately THB 169.1 million. In U.S. dollar terms, however, product sales fell only 2.5% YoY, reflecting a more stable underlying performance.
The gross profit margin improved to 21.4% from 20.2% a year earlier, supported by ongoing cost-reduction initiatives, particularly savings in labor costs and power consumption through new machinery and automation upgrades. These operational gains helped offset higher raw material costs—especially copper—which increased the cost of sales by 0.42% YoY.
Selling and Administrative (S&A) expenses dropped sharply by 19.5% YoY to THB 473.6 million, mainly because 3Q24 included a foreign exchange loss of THB 169.9 million, which was not repeated this year. The company also benefited from normalized logistics conditions, resulting in lower freight expenses.
Looking ahead, KCE plans to maintain its focus on cost discipline and technology enhancement. The company has postponed construction of a new factory, choosing instead to upgrade existing facilities with advanced machinery to improve productivity—especially as capacity utilization remains below 70% (67% in 3Q25 vs. 71% in 3Q24).
Additionally, KCE is proceeding with the internal merger of its subsidiaries Chemtronic Technology and Chemtronic Products, scheduled for completion by Q1 2026, a move aimed at streamlining administration and enhancing management efficiency.
