Kasikorn Securities has revised its outlook on KCE Electronics Public Company Limited (SET: KCE), upgrading the stock to “Outperform” with a new target price of Bt27, up from Bt18, citing improved fundamentals and multiple growth drivers for 2026-2027.
The brokerage expects the global automotive cycle to stabilize, although a significant recovery is not anticipated until 2027 due to macroeconomic challenges, high interest rates, and decelerating electric vehicle (EV) demand. Global auto sales are forecast at 91.8 million units in 2026, with further growth delayed to 2027.
Despite this, the electronics sector, particularly automotive electronics, is showing signs of recovery. Demand for advanced driver-assistance systems (ADAS), software-defined vehicles (SDV), and increased semiconductor content support a robust industry outlook. The automotive electronics market is projected to reach approximately USD 519 billion by 2035, outpacing vehicle volume growth.
Kasikorn Securities notes that China’s EV market has softened following the reduction of tax incentives, which is expected to lessen competition from Chinese automakers. Meanwhile, KCE is capitalizing on cost optimization measures, including automation, in-house chemical sourcing, and expansion of high-density interconnector (HDI) capacity by 20-30% by mid-2026, supported by a backlog exceeding USD 10 million.
In light of these positive developments, the brokerage has raised its 2026/27 earnings forecasts for KCE by 21% and 20% respectively, now expecting net profits of Bt1.1 billion and Bt1.3 billion. These forecasts are based on stronger USD-based sales, improved auto demand, new program launches, and increasing electronics content per car.
The report further states that recovering PCB exports, a supportive weak baht, and stable copper prices are additional tailwinds. Compared to peers such as HANA, KCE’s more visible earnings growth supports a rotation into the stock. The price-to-earnings (PER) multiple target has also been raised to 26 times (+0.5 standard deviation) to reflect its stronger outlook.
