Kiatnakin Phatra Securities (KKPS) has initiated coverage of KCE Electronics Public Company Limited (SET: KCE) with a “Buy” recommendation and a price objective of THB104, representing a 53.5% upside from the share price of THB67.75 cited in the report. The brokerage expects earnings momentum to improve as automotive printed circuit board demand recovers and KCE expands into new segments beyond its core auto-related business.
The target price is based on a target price-to-earnings multiple of 38.1 times, which KKPS said reflects a premium to KCE’s historical valuation as the company enters a stronger earnings cycle and pursues new revenue opportunities.
KKPS forecasts KCE’s pre-exceptional earnings per share to grow 95% in 2026 and 110% in 2027. The brokerage’s 2027 earnings estimate is 69% above market consensus, supported by expectations of an automotive rebound, better margins and additional growth channels outside the automotive sector.
According to the research note, KCE has not yet fully caught up in the broader PCB upcycle seen among global peers, largely due to softer automotive demand. KKPS expects the company to benefit from a recovery in auto-related orders, higher-value PCB capacity and tighter PCB supply linked to artificial intelligence demand.
The brokerage also identified communications as KCE’s first major expansion area beyond automotive, led by low-earth orbit satellite applications. It expects satellite-related communications revenue to account for 16% of PCB revenue in 2027 and 30% in 2028, helped by incremental output from new factories.
KKPS added that optical communications could become another growth area for KCE, supported by China+1 supply-chain shifts and Thailand’s developing optical ecosystem.
Another potential market identified in the report is humanoid robotics. KKPS said KCE’s management has confirmed discussions with Tesla on humanoid PCB opportunities, with the company moving through the qualification process and awaiting final design. The report cited BofA’s projection that the humanoid robot market could reach US$100 billion by 2033, with global shipments rising from 290,000 units in 2027 to 1.2 million units by 2030.
KKPS estimates KCE’s adjusted net profit at THB1.53 billion in 2026, THB3.21 billion in 2027 and THB4.17 billion in 2028, after THB883 million in 2025. Key downside risks include slower satellite project commercialization, delays in new capacity ramp-up, weaker-than-expected margin recovery and raw-material shortages.
