On Wednesday, the share price of KCE Electronics Public Company Limited (SET: KCE) at the time of 10.58 a.m. was at THB 58.75, a THB 1 or 1.73% increase with a total trading value of THB 814.32 million.
Kasikorn Securities (KS) projected a positive outlook for KCE’s performance in the second half of 2026, supported by sales volume growth, average selling price (ASP) adjustments, and an improved product mix.
KCE’s management expects printed circuit board (PCB) sales in US dollar to increase by 17-19% quarter-on-quarter in 3Q26, with a gross profit margin of approximately 25%. The company is also considering a second ASP adjustment in early 4Q26 to offset rising raw material costs.
Raw material prices for copper clad laminates (CCL) have risen continuously throughout 2026. Kingboard raised its CCL prices multiple times between March and July, totaling a cumulative increase of about 60%. Meanwhile, Panasonic also increased its standard CCL prices by a cumulative 50% between May and August, driven by a tight fiberglass supply and rising copper foil prices.
KS believes this environment will enable KCE to raise PCB selling prices by another 10% in early 4Q26. KCE is also expected to experience less impact from rising CCL costs than its competitors who do not have fully integrated production.
A key factor supporting this is Thai Laminate Manufacturer Co., Ltd. (TLM), which can supply almost all of KCE’s laminate demand (excluding certain products related to Panasonic). This increases supply security and reduces cost pressures, meaning the price adjustments are expected to yield a net positive impact on the gross profit margin.
For the 2027 outlook, management expects revenue growth of more than 20% year-on-year from increases in both volume and price. KCE also sees opportunities to expand market share and capture new business due to U.S. customer order migrations.
Additionally, KCE is evaluating an investment in the Rojana Phase 1 project to add 1 million square feet per month of production capacity (approximately a 30% increase over current capacity). Construction is slated to begin in the first half of 2027 with an estimated budget of THB 4 – 6 billion.
KS views KCE’s strong performance outlook and potential market earnings upgrades as positive catalysts for its stock price. As a result, the analyst maintains a “Buy” recommendation, raising the target price from THB 45 to THB 60 to reflect higher earnings estimates and an increased PER multiple from 33x to 36x.
