Cal-Comp Electronics (Thailand) Public Company Limited

Bualuang Securities said combined core profit of four electronics stocks in the second quarter of 2026 was 6.8 billion baht, up 16% from a year earlier but down 32% from the previous quarter, with the decline driven mainly by Delta Electronics Thailand. Excluding Delta, combined core profit of the other three companies was 1.19 billion baht, up 58% from both a year earlier and the previous quarter. Cal-Comp Electronics Thailand posted the strongest core profit growth from a year earlier at 182%, while Hana Microelectronics showed the strongest recovery from the previous quarter at 169%. On gross margin, KCE Electronics was the only stock that expanded from both a year earlier and the previous quarter. Delta's gross margin rose 180 basis points from a year earlier but fell sharply by 490 basis points from the previous quarter. A key issue to monitor is working capital after all four companies accelerated inventory accumulation, up 12% from the previous quarter for KCE, 24% for Hana, 25% for Delta and 40% for Cal-Comp, due to tight component supply and higher memory and copper raw material prices. However, cash flow at Delta, KCE and Hana recovered, with Delta posting operating cash flow of 10.8 billion baht, KCE 507 million baht and Hana 439 million baht, while Cal-Comp posted negative operating cash flow of 2.9 billion baht despite the strongest profit growth in the group. For the third quarter of 2026, the trend is improving. Delta views the second-quarter issue as merely a delivery postponement, not disappearing demand, after supply constraints began to ease. It expects third-quarter revenue to grow 10-15% from the previous quarter and maintains a 30% gross margin target, with second-half core profit expected at around 22-23 billion baht, up 55% from a year earlier and 45% from the first half. KCE gave a more positive outlook, expecting third-quarter volume to rise 8-9%. Price increases effective from July 1 are seen lifting printed circuit board revenue by a combined 17-19%, with gross margin expected at around 25%. As a result, quarterly core profit in the second half is likely to approach 500 million baht, and there is a chance of raising the 2027 revenue assumption from the previous plus 15% to around plus 20%, which could push 2027 core profit above 2.0 billion baht. Bualuang Securities maintains a neutral view on the electronics group, with the second-half trend improving on Delta's recovery and accelerating momentum at KCE. Delta keeps a buy rating with a target price of 440 baht. Hana is rated hold with a target price of 46 baht. KCE keeps a trading buy rating, but its target price is under review.

AIRA Securities recommends that investors avoid short-term speculation in Thai electronics stocks after share prices in the sector fell around 6 to 8 percent simultaneously on July 30, citing three pressure factors. First, raw material costs for semiconductor DRAM, NAND, and copper have risen, negatively impacting production efficiency and gross margins for companies like Delta Electronics, CCET, and KCE. Second, there are growing concerns over increased competition from China after it began commercial production of immersion DUV lithography machines, with expected deliveries of around 5 units in 2026 and around 20 units in 2027 to SMIC, Hua Hong, and CXMT. Meanwhile, CXMT has plans to more than double its production capacity to over 600,000 wafers per month, which could affect Thai electronics manufacturers such as KCE, HANA, Delta Electronics, and CCET through price competition and order losses. Third, Thai electronics stocks were indirectly hit by the sharp sell-off in overseas semiconductor and AI stocks between July 28 and 29, driven by concerns over high valuations, funding risks for AI infrastructure projects, and competition from China. The KOSPI index fell 7.60 percent and the TAIEX fell 4.65 percent on July 28, with selling pressure continuing on July 29 after SK Hynix earnings missed expectations, compounded by forced selling and leveraged position unwinding in the Korean stock market. Meanwhile, Meta shares fell due to a roughly 90 percent drop in free cash flow alongside increased capital expenditure of 130 to 145 billion US dollars. These factors are expected to weigh most heavily on Delta Electronics, as its revenue and growth expectations are directly tied to power supply and cooling systems for AI data centers, followed by CCET and HANA on concerns over the sustainability of orders in the AI server and semiconductor supply chain. However, in the long term, these companies still have momentum from the semiconductor industry recovery and continued rising investment in AI and data centers. AIRA Securities maintains a buy-on-weakness recommendation for HANA, driven by new product launches in the second half of 2026 and in 2027.

Shares of Thai electronic components companies fell sharply in morning trading today. DELTA dropped 7.02% to 265 baht, HANA fell 8.05% to 34.25 baht, CCET declined 8.19% to 7.85 baht, KCE lost 6.63% to 38.75 baht, SMT slid 6.61% to 4.52 baht, and TEAM decreased 4.27% to 4.48 baht. As a result, the electronic components sector index, or ETRON, fell 7.04%, and the technology sector index, or TECH, dropped 4.41%. The sell-off mirrored global technology and semiconductor markets after SK Hynix reported lower-than-expected second-quarter earnings and its share price tumbled 9.6%. Meanwhile, the Nasdaq index fell 1.7% and the SOX index plunged 5.3% amid concerns over the sustainability of AI investment and rising US bond yields. Additionally, DELTA faced further pressure from the market's reaction to its own second-quarter earnings.

The Thai stock market fell sharply, with the SET Index dropping below the 1,600-point level today, 30 July 2029. The main drag came from DELTA, whose heavy price decline alone knocked more than 10 points off the index, along with selling pressure across large-cap stocks. Analysts at Bualuang Securities noted that a global sell-off in chip and AI hardware stocks, especially in South Korea where the KOSPI index plunged more than 12% intraday and triggered a circuit breaker for the second straight day, warrants caution on Thai electronics names such as DELTA, CCET, HANA, and KCE. The research team therefore decided to cut losses on DELTA in its SET100 Smart Tactical portfolio for now. Meanwhile, global oil prices surged more than 7% on Middle East tensions, a positive for upstream energy stocks like PTTEP and PTT, but a headwind for cost-sensitive sectors such as tourism, transport, and retail. The near-term investment strategy favours large-cap stocks based on foreign fund flows and speculative sector rotation plays.

Asia Plus Securities' research unit says new US tariff measures under Section 301, one of the risks to Thai exports in the second half of the year, will slow exports because Thailand faces a 12.5% levy, higher than some ASEAN peers like the Philippines and Malaysia, potentially reducing competitiveness. Thailand also runs a growing surplus with the US, and markets must watch for surplus-production tariffs the US has yet to announce, which will pressure the Thai economy's export sector. Product groups hit by the 12.5% tariff include pet food, processed food, and beverages, covering stocks such as AAI, ITC, PLUS, TU, and COCOCO, as well as electronics, including HANA, DELTA, KCE, and CCET. Major Thai goods exempted from the 12.5% tariff are oil, gas, and fertiliser, which the US imports heavily, easing pressure on refinery and oil stocks like PTT, PTTEP, TOP, IRPC, and BCP, and goods already under Section 232, such as automobiles, steel, aluminium, and copper, which eases pressure on processed steel and steel pipe stocks like PAP, TMT, and SAM, and auto parts stocks like AH and SAT. The Commerce Ministry reported that Thai exports in June 2026 grew 20.8% year-on-year, above the market forecast of 15.2%, while imports rose 50.3%, above the 35.8% forecast, resulting in a trade deficit of 6.565 billion US dollars. Standout products included pet food, up 22.3%, expanding for a tenth straight month; rubber, up 12.5%, returning to growth for the first time in 14 months; and processed chicken, up 6.1%, expanding for a seventh consecutive month.