Krungsri Securities (KSS) projects KCE Electronics Public Company Limited (SET: KCE) to deliver a normalized profit of THB 495 million in 3Q26, marking a significant increase of 66% year-on-year and 119% quarter-on-quarter, fueled by rising revenue, expanding gross margin, and tightly managed costs.
Revenue is expected to climb by 15% quarter-on-quarter, mainly driven by the printed circuit board business, which contributes 85% of total revenue. Sales volume is projected to grow 8% quarter-on-quarter with a 9% price hike in 3Q26, resulting in a 19% year-on-year revenue increase from both higher volumes and pricing.
Gross margin is forecasted to reach 25% in 3Q26, up from 18.9% in 2Q26 and 21% in 3Q25, supported by operational leverage and price adjustments. On the cost front, SG&A expenses are expected to rise in tandem with revenue, up 13% year-on-year and 15% quarter-on-quarter.
If KCE achieves the projected 3Q26 results, its normalized earnings for the first nine months of 2026 will reach 64% of Krungsri’s full-year estimate. Despite the typical softness in the fourth quarter, the brokerage anticipates that KCE will implement another price hike of 7% in October 2026, supporting continued earnings growth into 4Q26—consistent with management’s outlook, which allows for further price increases if raw material costs such as copper continue to rise.
Krungsri maintains its forecasts of stellar earnings growth of 77% for FY26 and expects growth to accelerate to 82% year-on-year in FY27, attributed to both a 12% rise in sales volume and a 13% price hike, alongside stronger gross margins.
Following these developments, Krungsri reiterates a ‘Buy’ rating on KCE with a target price of THB 97.00 per share. The brokerage notes that KCE’s share price has already shown strong gains, but views robust earnings momentum from 3Q26 onwards as the next catalyst to reach the target price. With the shares trading at 35x FY27 earnings and 82% EPS growth expected, the stock is considered undervalued.
