Maybank Securities (Thailand) recently engaged with 24 institutional investors across Singapore and Kuala Lumpur, finding that attention remains concentrated mainly on DELTA and HANA, while the broader Thai electronics sector continues to be viewed with caution due to tight valuations following a strong rally since March 2026.
In Singapore, most investors maintain an underweight position on Thai electronics stocks, concerned with high valuations, though many still hold stakes in DELTA. Similarly, investors in Kuala Lumpur already own DELTA and are looking for new opportunities to add exposure in Thailand. Key discussion points included: DELTA’s growth prospects amid supply chain concerns and production slowdowns for AI products, HANA’s AI business and the effort to reduce losses at its PMS factory in Korea, and the broader role of Thai electronics in the global AI supply chain.
Maybank maintains a “neutral” view on the sector, seeing robust earnings largely priced in, and highlights HANA as its top pick. Reducing losses at PMS is cited as a crucial alpha generator for HANA. Investors are positive about HANA’s legacy business and new AI clients but remain wary about profitability at PMS. Maybank believes gradual restructuring, new silicon foundry clients in Korea, and pivoting towards AI and data center applications will steadily reduce PMS losses. Expected gross margins for PMS/US are projected at -64% in 2025, -40% in 2026, and -10% in 2027.
The “Buy” rating is retained for HANA with a target price of THB 52, supported by core profit growth forecasts of 65% and 68% for 2026 and 2027, respectively, driven by lower losses at PMS and HTI, significant new AI customer sales, and recovery in its integrated circuit business.
Investor concerns on DELTA may be overblown, according to Maybank. Tight AI production capacity points to strong demand, which is expected to normalize by 2029, while supply chain pressures should ease from 2026 as DELTA diversifies suppliers. Core profit growth is projected at 61% for 2026 and 40% for 2027, mainly fueled by sales and margin improvements from new liquid-cooling AI/data center solutions. Any share price pullback post-2026 results would be viewed as a buying opportunity.
Interest in KCE and CCET was markedly lower, with investors seeing little room for meaningful ASP or margin growth, particularly as over half of KCE’s sales are tied to the Western automotive sector, now facing stiff EV competition from China. Maybank also deems KCE’s new deals in robotics, drones, and telecoms (worth $30–40 million per year) insufficient to justify its steep 2027 P/E of 49x, far above its five-year average. Meanwhile, the brokerage firm adds that CCET still lacks investors’ interests.
