KCE Electronics Public Company Limited

The Ministry of Commerce reported that Thailand's export value in July 2026 stood at 34.8 billion US dollars, expanding 21.6% year-on-year, higher than the market's expectation of 17.8%. Meanwhile, imports for the same month were 38.4 billion US dollars, up 37.8%, lower than expected, resulting in a trade deficit of 3.61 billion US dollars, less than forecast. Products with good growth include rubber, processed chicken, pet food, processed canned seafood, and electronic goods. Stocks in these sectors, such as STA, GFPT, ITC, TU, DELTA, HANA, and KCE, benefit accordingly. In the first seven months of the year, exports totaled 232 billion US dollars, up 18.2%, while imports were 267 billion US dollars, up 37.8%, with a trade deficit of 35.4 billion US dollars. The Ministry of Commerce sees support from global demand for technology products and digital infrastructure, as well as accelerated imports to prepare for US trade policies. Meanwhile, brokers like Krungsri Securities and Phillip Securities view positively on export-related stocks and recommend top picks such as DELTA, HANA, KCE, AMATA, GULF, GPSC, KBANK, and KTB.

Krungsri Securities Public Company Limited stated that the total net profit of the Electronics group in the second quarter of 2026 was 6.67 billion baht, up 38% year-on-year but down 29% quarter-on-quarter. The year-on-year increase was driven by improved profits across all companies in the group, especially HANA, whose profit surged 840%, and KCE, which rose 52%. Meanwhile, DELTA increased only 31% and declined 33% quarter-on-quarter due to raw material shortages. DELTA's profit is expected to recover in the third quarter of 2026, but not as strongly as the first quarter's 9 billion baht. In contrast, HANA and KCE are expected to see stepwise profit growth from a new upward earnings cycle. The group's profits are forecast to grow 45% and 41% in 2026 and 2027, respectively, with HANA growing 44% and KCE 50% in 2027, while DELTA's growth slows to 29% from 42% as hyperscalers like Amazon and Microsoft delay data center investments. The brokerage maintains a Reduce rating on DELTA with a target price of 244 baht, and recommends buying HANA and KCE, with KCE as the top pick due to its upstream position and better raw material cost control.

Third-quarter net profit of Thai listed companies is expected to expand from a year earlier but slow from the previous quarter, with the main support coming from higher energy prices, petrochemical spreads, mobile and internet service revenue, electronics demand, as well as new power generation capacity and profit from GULF's overseas power plant business. Meanwhile, higher jet fuel costs are pressuring the airline group, and narrowing interest margins are pressuring the banking group. Groups whose core profit is expected to grow from a year earlier are led by energy, petrochemicals and construction materials, supported by average Brent crude prices in July to August rising 28% from a year earlier and Singapore GRM refining margins rising 434% from a year earlier. The electronics group is supported by strong AI and data center demand, with DELTA Taiwan's power electronics sales in July growing 59% from a year earlier and 17% from the previous quarter. KCE expects PCB revenue may rise 17 to 19% from the previous quarter thanks to product price increases effective from July 1, which should lift average selling prices by about 9 to 10%. HANA is seeing IC capacity utilization recover, and AI-related products are expected to begin commercial production from the third quarter. The communications group is supported by mobile and internet service revenue. The hospital group expects revenue to return to growth both from a year earlier and from the previous month in July, supported by Thai and Middle Eastern patients, with flights from the Persian Gulf estimated to have recovered to pre-war levels since early July. The retail group saw same-store sales rise 1% from a year earlier in July, led by IT product retailers, with COM7 expecting total sales to grow 15% from a year earlier and ADVICE growing 17% from a year earlier. CPALL expects same-store sales to expand 0.5% from a year earlier on average in July to August, while Makro was flat and Lotus contracted 5% from a year earlier. The tourism group saw revenue per available room in July at AWC rise 26% from a year earlier, CENTEL rise 8% from a year earlier, ERW rise about 5% from a year earlier, and MINT rise 4% from a year earlier. Groups whose core profit is expected to decline from a year earlier are led by transport, pressured by higher jet fuel costs, banking, pressured by persistently narrowing interest margins, and meat, pressured by lower meat prices, with average pork prices in July falling 14% from a year earlier and chicken prices falling 1% from a year earlier. Meanwhile, the pet food export group expects sales to still grow 10% from a year earlier and 7% from the previous quarter in July. Analysts recommend being selective in stocks whose third-quarter earnings trends are still expected to grow strongly, have not seen sharp earnings downgrades over the past three months, and have clear positive factors supporting recovery. These include KCE in electronics, CBG in beverages, which expects domestic energy drink sales to grow 10% from a year earlier and Myanmar sales to grow 70% from a year earlier in the third quarter of 2026, ITC in pet food exports, BH and BDMS in hospitals, AOT and CENTEL in tourism and airports, and GPSC in power plants, which recognizes full-quarter profit from GHECO-One and Glow IPP power plants.

Kasikorn Securities stated that KCE reported second-quarter 2569 net profit of 276 million baht, up 52% year-on-year and 18% quarter-on-quarter, 16% above estimates, due to better-than-expected revenue and gross margin, as well as a foreign exchange gain of 34 million baht. Management expects third-quarter 2569 PCB sales in US dollar terms to rise 17–19% quarter-on-quarter and gross margin to be around 25%, with a possible second round of average selling price increases in early fourth quarter to offset higher raw material costs. CCL prices continue to rise in 2569 amid tight fiberglass supply and high copper foil prices, and KCE is expected to raise PCB average selling prices by another 10% in early fourth quarter. The company announced an interim dividend for the first half of 2569 of 0.6 baht per share, representing a payout ratio of 140% and a yield of 1.3%, with the XD date set for 24 August and dividend payment on 9 September. Kasikorn Securities maintained a buy recommendation and raised its target price from 45 baht to 60 baht, reflecting higher earnings estimates and an increase in the PER multiple from 33 times to 36 times.

Six listed electronics component makers reported higher net profit in the second quarter of 2026 compared with the same period a year earlier, with HANA and TEAM growing more than 100 percent, while KCE, CCET, DELTA and METCO rose 13 to 51 percent. The growth was supported by a recovery in overseas orders, higher electronics and semiconductor sales, and a shift in product mix toward higher-margin goods. Global investment trends in AI and data centers remain supportive factors for demand for power supply systems, cooling systems, printed circuit boards and related products, especially for companies in the supply chains of global cloud service providers and semiconductor manufacturers. HANA reported net profit of 326.31 million baht, up 838.35 percent from 34.78 million baht. TEAM posted profit of 79.99 million baht, up 173.11 percent from 29.29 million baht. KCE reported profit of 275.92 million baht, up 51.49 percent from 182.14 million baht. CCET posted profit of 711.32 million baht, up 48.13 percent from 480.20 million baht. DELTA reported profit of 6.07 billion baht, up 31.23 percent from 4.63 billion baht. METCO posted profit of 234.57 million baht, up 13.38 percent from 206.90 million baht. Analysts from Krungsri Securities, KGI Securities, Kasikorn Securities and Maybank Securities all assessed the outlook for the second half of 2026 as positive, especially for DELTA, HANA and CCET, which are beginning to benefit from new products and new production capacity.

Krungsri Securities assesses that investment momentum in AI hubs and data centers will help unlock the Thai stock market from de-rating and push the index into a range of 1,680 to 1,750 points within the third to fourth quarter. Korrapat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities, said at the Final Call 2026 seminar that the global economic cycle is transitioning, with Asia becoming the next growth cycle driven by the AI technology wave amid geopolitical tensions and global trade friction, causing significant investment inflows into Thailand and Asia. This round of momentum comes from the fixed-asset investment cycle of hyperscalers to build scarce computing capacity, with data centers attracting the entire technology supply chain into the region. The first business groups to benefit are finance and banking, followed by electronic components and cooling systems such as KCE and HANA, property development and construction contractors, and utilities and energy. Korrapat said this investment cycle will push the Thai stock market's P/E ratio to expand by an average of up to five times, as the market currently reflects too little of the positive factors.

Krungsri Securities Public Company Limited, or KSS, said the US Treasury is preparing to increase the size of its long-dated government bond buybacks to at least 4 billion US dollars per operation, focusing on bonds with maturities of 10 to 20 years and 20 to 30 years, starting from 9 September 2026 onwards. The measure caused the yield on 30-year US government bonds to fall by 0.07%, while the 10-year yield fell by 0.04%, alongside a weaker US dollar and a recovery in global risk assets. KSS views this bond buyback as a measure to support liquidity and manage the average maturity of debt securities rather than as quantitative easing, because the US Treasury is using short-term Treasury bill issuance as the main funding source for buying back long-term bonds. These factors pushed the dollar index down to its lowest level in one month, while the baht strengthened to trade around 32.80 to 32.90 baht per US dollar, reflecting conditions that favour foreign capital inflows into Asian and Thai equity markets. In the medium to long term, the Thai economy should also benefit from foreign direct investment flowing into the ASEAN region, supporting the investment cycle in artificial intelligence infrastructure and data centres. This should be positive for commercial banking stocks as the main funding source, without concern over non-performing loan risk among SME businesses, because this credit cycle is being driven by large corporates and the government continues to provide assistance measures for SMEs. Stocks expected to benefit directly from easing bond yields and the technology trend include Delta Electronics Thailand Public Company Limited, or DELTA; KCE Electronics Public Company Limited, or KCE; Hana Microelectronics Public Company Limited, or HANA; Gulf Development Public Company Limited, or GULF; Global Power Synergy Public Company Limited, or GPSC; WHA Utilities and Power Public Company Limited, or WHAUP; Muangthai Capital Public Company Limited, or MTC; and Krungthai Card Public Company Limited, or KTC.

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.

Kasikorn Securities said private investment in the second quarter of 2026 grew 13.4 percent, the highest in 11 years, supported by investment flows into S-Curve industries such as electronics, AI, and clean energy. Exports grew 12.5 percent, reflecting economic restructuring toward a New Economy production base, even as GDP slowed to 1.9 percent due to pressure from energy, inflation, and weaker consumption. The research team views this as positive for industrial estates, electronics, data centers, and clean energy, including WHA, Amata, Delta, Hana, KCE, and Gulf, driven by accelerating FDI and new infrastructure investment.

Asia Plus Securities has upgraded its investment weighting on the electronics sector from market weight to overweight, expecting second-half 2069 profit to be better than the first half because the third quarter of 2069 is a high season when customers accelerate orders before the long year-end holidays. Analysts said DELTA and KCE, which were the main drivers of the sector's first-half profit, will continue to recover. DELTA's raw material shortage has been easing since July 2069, while KCE is benefiting from higher margins due to a global laminate shortage. The broker selected DELTA as its top pick because it believes profit has passed its trough in the second quarter of 2069 and is expected to show the strongest growth in the third quarter of 2069.

Asia Plus Securities' research department said second-quarter 2026 profits of Thai listed companies were the highest on record, beating expectations by about 13%, but still lagging US tech stocks, where NASDAQ beat expectations by 53%, causing some funds to rotate into tech stocks and keeping Thai stocks under pressure and hard to move. It recommends stocks with supportive factors, namely PTT, GULF, GPSC, BGRIM, and stocks expected to post standout third-quarter profits, namely CPF, BDMS, BH, PR9, and KCE. Data from 594 companies, representing 98% of market capitalisation, show second-quarter 2026 net profit surged to 386 billion baht, growing 10.8% quarter-on-quarter and 12.5% year-on-year, with the energy sector contributing as much as one-third of profits. Commodity-linked stocks such as energy, petrochemicals, food, and agriculture accounted for as much as 44% of total market profit, compared with the normal level of about 30%. First-half profit already accounted for more than 60% of full-year estimates, making third- and fourth-quarter profit targets of only about 19% per quarter, or roughly 228 billion baht, not difficult to achieve. There is also a chance that full-year EPS estimates will be revised upward at year-end, adding upside to the SET Index.

Bualuang Securities released analysis on JMT, MINT, BAM, KCE and MTC following analyst meetings. JMT expects cash collections in the third quarter of 2026 to recover both year on year and quarter on quarter after seeing improvement since May, supported by collections from new debt purchased in the first quarter. The research team therefore recommends buying MINT, maintaining its profit growth target of 15 to 20 percent per year during 2026 to 2028 and net debt to equity of 0.75 to 0.85 times, while keeping plans for a food IPO and asset sales. BAM still targets 2026 net profit of 2 billion baht, up 10 percent year on year, but the research team sees the slow economic recovery pressuring that target and recommends sell. KCE expects third quarter 2026 revenue to grow 13 to 15 percent quarter on quarter with a gross margin of 25 percent, with a chance for 2027 profit to exceed 2 billion baht and the share price to break above 50 baht. MTC has cut this year's loan growth target to 8 to 10 percent year on year from 10 to 15 percent previously because of stricter lending after the Middle East conflict, but the research team still recommends buy and expects third quarter 2026 net profit to reach a new high.

Krungsri Securities has raised its target price for KCE Electronics Public Company Limited, or KCE, to 68 baht from 58 baht, while maintaining a buy recommendation, after company guidance came in more positive than expected. The research team therefore lifted its 2026 profit forecast by 10 percent and its 2027 forecast by 17 percent to reflect higher revenue and gross margin under a new earnings growth cycle. Earnings per share are expected to grow 69 percent in 2026 and 50 percent in 2027.

Asia Plus Securities' research team said profits of 283 Thai listed companies out of 682 that have reported second-quarter results came in 11.9% above market expectations. Combined with estimates for the remaining companies, which cover 93% of market capitalisation, it assesses that total second-quarter profit could reach 355 billion baht, up 6.7% from the previous quarter and 8.2% from a year earlier. This raises expectations that second-quarter profit for fiscal 2026 may set a record high, continuing from the first quarter of fiscal 2026. The main growth drivers are petrochemicals, packaging and energy. Including commodity-linked groups such as energy, petrochemicals, food and agriculture, they would account for 44% of total market profit, compared with a normal level of about 30%. The research team views that first-half profit already represents 60% of the full-year target, reducing pressure in the third and fourth quarters and opening upside to the market-wide earnings per share estimate of 95 baht per share, which gives room for the index target to be revised upward. Meanwhile, foreign fund flows into the Thai stock market slowed clearly in August, with cumulative net selling of nearly 10 billion baht, while retail investors were net buyers supporting the index. The research team recommends three stock groups: companies with better-than-expected results such as IRPC, TCAP, KCE and CENTEL; companies benefiting from commodities and geopolitics such as TASCO, RCL, BCP and PTTGC; and companies expected to recover in the second half such as THAI, ERW and BCH. Its top three picks are PTT, BDMS and CENTEL.

Asia Plus Securities has raised its target price for KCE from 43.00 baht to 53.00 baht and upgraded its recommendation from Trading to Buy, after the company reported second-quarter 2026 net profit of 276 million baht, up 18% from the previous quarter and 52% from a year earlier, beating market and research expectations by about 12% to 17%. Core profit was 242 million baht, up 34% from the previous quarter and 35% from a year earlier. Revenue rose to 3.6 billion baht, up 15% from the previous quarter and 9% from a year earlier. Gross margin improved to 18.9% from 17.7% in the previous quarter and 18.1% a year earlier, driven by production efficiency improvements and partial selling price adjustments in late June 2026. The company announced a first-half dividend of 0.60 baht per share, with the ex-dividend date on 24 August 2026. The research team raised its 2026 and 2027 core profit forecasts to 1.2 billion baht, up 44% from a year earlier, and 1.6 billion baht, up 31% from a year earlier, respectively. It expects second-half core profit to grow both from the first half and from a year earlier, supported by a full quarter of selling price increases, the peak sales season in the third quarter, and rising demand for printed circuit boards.

Bualuang Securities analyzed second-quarter 2026 results for nine listed companies. KCE reported core profit of 242 million baht, 12 percent above market expectations, and raised its 2026 profit forecast by 5 percent. The broker maintained a Trading Buy rating with a target price of 47 baht. IRPC, IVL, PR9, MTC, and SAWAD posted profits in line with expectations, while BAM, JMT, and BTG reported weaker-than-expected earnings. BTG had its 2026 profit forecast cut by 9.7 percent and its target price lowered to 23.40 baht from 26 baht.

KCE shares surged 6.74% to 47.50 baht after reporting second-quarter net profit for fiscal 2026 of 276 million baht, up 51% from a year earlier and 28% above market expectations, helped by foreign exchange gains of about 50 million baht and a 9% rise in revenue to 3.57 billion baht. Krungsri Securities raised its target price to 58 baht from 50.50 baht and maintained a buy rating, while Phillip Securities lifted its target to 48 baht and kept a gradual accumulation recommendation. Both brokers expect product price increases from the third quarter to support continued profit growth in the second half.

KCE Electronics Public Company Limited, or KCE, has announced an interim dividend of 0.60 baht per share. The ex-dividend date is set for 24 August 2026, with payment on 9 September 2026. As a result, Mr. Pithan Ongkosit, also known as Amp, the company's largest shareholder, is set to receive pre-tax dividends of more than 112 million baht. Based on shareholder data as of 24 March 2026, Amp holds 187,079,486 shares, representing 15.83% of KCE's total shares. KCE reported net profit for the second quarter of 2026 of 275.9 million baht, up 51% from the same period last year and higher than the first quarter of 2026, driven mainly by higher sales revenue.

CGS International Securities Thailand, or CGSI, expects the Thai stock market index to move in a range of 1,610 to 1,635 points today, supported by buying in artificial intelligence stocks and US consumer price inflation slowing in line with expectations, which has raised investor hopes that the Federal Reserve will not raise interest rates at next month's meeting. CGSI recommends SPALI after it reported second-quarter 2026 net profit of 1.65 billion baht, 84.6% above expectations, and KCE, whose second-quarter 2026 core net profit was 242 million baht, up 35% from a year earlier and 34% from the previous quarter, exceeding CGSI and Bloomberg consensus estimates by 8% and 10% respectively.

Krungsri Securities expects the SET index to recover today, with resistance at 1,630 and 1,635 points and support at 1,607 and 1,598 points. US consumer inflation in July 2026 came in at 3.4 percent year on year and 0.1 percent month on month, down from 3.5 percent year on year, in line with expectations. This led the market to cut the probability of a Fed rate hike at the September meeting to 38 percent from 50 to 60 percent previously. On the domestic front, second quarter market earnings beat expectations, accelerating to 11.8 percent from 11.0 percent, and the 2026 power development plan shows signs of progress. The subcommittee drafting the plan met on August 17 and concluded a plan to expand power generation capacity by 20,000 megawatts, and may adjust direct power purchase agreement criteria to support data center demand. Top picks are GULF, KCE and HANA.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

KCE expects second-half 2026 earnings to grow 20 percent, driven by higher demand for printed circuit boards, with AI as the main catalyst. President and CEO Pitharn Ongkosit said rising raw material costs and product shortages have forced the company to raise prices, resulting in a high single-digit growth outlook for full-year 2026. Meanwhile, the company is exploring new markets in military, aerospace, communication, infrastructure, and electric vehicles, where competition is easing as other players shift focus to the AI market.

Krungsri Securities maintains a buy rating on KCE with a target price of 50.5 baht, expecting core net profit in the second quarter of 2026 at 224 million baht, up 25 percent from a year earlier and 24 percent from the previous quarter, supported by higher revenue, expanding gross margins, and good cost control. Profit momentum will become even more pronounced in the second half of 2026, driven by stronger demand for printed circuit boards and HDI, as well as the full impact of product price increases of 10 to 15 percent from July 2026. Krungsri Securities keeps its 2026 profit forecast at 1.2 billion baht, up 46 percent from the prior year, and sees a new profit growth cycle resuming over 2026 to 2028, with a compound annual growth rate in earnings per share of 32 percent.

KS Securities expects the Stock Exchange of Thailand index to move in a range of 1,600 to 1,650 points this week, as the market begins to ease from selling pressure on semiconductor stocks in South Korea. Leveraged ETF positions are currently at low levels, reflecting that forced selling has largely run its course, which should help reduce global equity market volatility and boost speculative appetite for risk assets. Key factors to watch include second-quarter 2026 earnings reports of listed companies, which are expected to remain broadly in line with the first quarter, as well as Thailand's July consumer price index, forecast at plus 2.71 percent year-on-year, and core CPI at plus 1.46 percent. Investors are also advised to monitor PMI, ISM, and US non-farm payrolls data. For top weekly picks, KS selects KCE and BCH. KCE's base price is set at 45 baht, with second-quarter 2026 net profit forecast at 237 million baht, growing 30 percent year-on-year and flat quarter-on-quarter, supported by a strong gross margin and lower costs, although foreign exchange gains are expected to soften. Revenue is projected to rise 5 percent both year-on-year and quarter-on-quarter, driven by higher average selling prices and utilization rates amid recovering PCB demand, lifting the gross margin to 18.3 percent. For the second half, KS maintains a buy rating, expecting profit growth both year-on-year and quarter-on-quarter from seasonal demand and global PCB price increases. BCH's base price is set at 11.30 baht, with a buy rating and a mid-2027 target price of 11.3 baht. KS believes earnings have bottomed and will be supported by a recovery in the second half of 2026, along with the potential for a special dividend. BCH is also studying the acquisition of Ratchavej Ubon Ratchathani Hospital, with a conclusion expected in the third quarter of 2026. Although the hospital is currently loss-making and has negative equity, it offers value-creation potential through network efficiency improvements, refinancing, and brand enhancement. An additional positive factor could arise if the Social Security Office adjusts the capitation rate. If the flat-rate payment increases by 10 percent from 2027, BCH's fair value could rise to 12.1 baht, or 7 percent above the current target price.

Bualuang Securities assesses that DELTA has passed its lowest point in the second quarter of 2026, expecting gross margin to recover by 2.5–3% in the third quarter, returning close to 30% after supply issues ease and no further provisions are needed. Mr. Napon Jaisan, Deputy Head of Research, revealed that second-quarter profit of 6.1 billion baht came in below expectations due to raw material shortages and sanctions on a Chinese supplier, but new suppliers are now in place and production will return to normal in August. Meanwhile, demand from hyperscale customers remains robust. He recommends accumulating DELTA at 270–275 baht, with worst-case support at 230–240 baht, and views KCE as the safest stock in the electronics sector because it is an upstream PCB manufacturer with no chip shortage risk and benefits from automotive and ADAS trends, setting a target price of 47 baht.

The SET index closed on 31 July up 25.53 points at 1,623.64 points, with turnover of 89.032 billion baht. Buying came from foreign investors at 3.516 billion baht, funds at 2.037 billion baht, and broker portfolios at 493 million baht, while retail investors were net sellers of 6.046 billion baht. DELTA and electronics stocks such as HANA, KCE, and CCET were key drivers that pushed the index to close above 1,600 points. Meanwhile, THAI, which exits its trading suspension on 4 August, has up to 19 billion shares eligible for sale. An estimated 8 billion shares could be sold in the first minute by retail investors, funds, and insurance companies, while cooperatives and commercial banks that converted debt to equity at a cost of 2.50 baht are still weighing their decisions. TCAP closed at 78.75 baht, up 7 baht or 9.82%, hitting a 30-year high after the board approved a 7.5 billion baht share buyback programme between 17 August and 16 February 2026.

Electronics component stocks bounced back strongly, supported by a global upswing in technology and semiconductor investment sentiment. Delta Electronics Thailand, or DELTA, at 10:01 a.m. was at 276.00 baht, up 12.00 baht or 4.55 percent. HANA rose 5.22 percent to 35.25 baht, KCE added 4.64 percent to 39.50 baht, CCET gained 3.75 percent to 8.30 baht, SMT advanced 4.48 percent to 4.66 baht, and TEAM increased 3.14 percent to 4.60 baht. Analysts at Asia Plus Securities noted that DELTA reported second-quarter 2026 net profit of 6.075 billion baht, down 33 percent from the previous quarter but up 31 percent from the same period last year. The result came in below market expectations due to shortages of certain key raw materials. However, profit is expected to resume an upward trend from the third quarter of 2026, supported by the seasonal sales period and approximately 100 million US dollars in orders deferred from the second quarter, while raw material shortages are likely to ease from July 2026 after the company secured new alternative suppliers. The research team maintained a buy rating with a target price of 342 baht. For KCE, Kasikorn Securities estimates it will report second-quarter 2026 net profit of 237 million baht, up 30 percent year-on-year and flat quarter-on-quarter. Second-half 2026 profit is expected to grow both year-on-year and compared with the first half, driven by strong seasonal demand and an improving gross margin trend after major global PCB makers gradually raised average selling prices by about 30 to 50 percent. The firm kept a buy rating with a target price of 45 baht. As for HANA, Yuanta Securities Thailand estimates normalised profit of 182 million baht for the second quarter of 2026, up 76 percent quarter-on-quarter and 19 percent year-on-year. Normalised profit is expected to continue recovering in the second half of 2026 in line with the electronics industry cycle. The broker upgraded the stock to buy and raised its target price to 45 baht from 38 baht.

Asia Plus Securities forecasts KCE Electronics' normalised profit in the second quarter of 2026 at 206 million baht, up 14% from the previous quarter and 15% from the same period last year. Revenue is expected to rise about 10% from the prior quarter to 3.4 billion baht, while selling and administrative expenses as a percentage of sales are likely to decline to 11.8% due to greater use of machinery replacing labour. The research team maintains its 2026 normalised profit estimate at 951 million baht but raises the 2027 forecast by 8% to 1.28 billion baht, anticipating selling price adjustments in line with raw material costs later this year. It upgrades KCE to a speculative buy and lifts the 2027 target price to 43.0 baht.

Electronics exports in June 2026 surged 66 percent year-on-year to 10.6 billion US dollars, accounting for 31 percent of the country's total exports, up from 22 percent in the same period last year. In baht terms, the value was 340 billion baht, up 15 percent from the previous month and 64 percent from a year earlier. Computers, equipment and components, which are DELTA's main products, still held the largest export share at 54 percent and grew 57 percent year-on-year. Printed circuit boards, the main product of KCE, posted the highest growth at 82 percent but accounted for only 2 percent of the total. For the first half of 2026, electronics exports reached 920 billion baht, up 28 percent from the previous quarter and 49 percent from a year earlier, with a bright outlook continuing into the third quarter, which is the industry's high season. This is supported by rising investment in AI and data centers, boosting demand for electronics in the supply chain. Analysts estimate that 2026 profits for electronics stocks will show strong growth compared to last year, but they maintain a market-weight rating on the sector. In the short term, DELTA's share price may face pressure from second-quarter earnings that came in below expectations, while KCE has already risen sharply by around 131 percent since the start of the year.

Kasikorn Securities said DELTA's second-quarter 2026 net profit of 6.1 billion baht was 34% below its research forecast. While profit rose 31% from the same period a year earlier, it fell 33% from the previous quarter. Gross profit margin shrank to 26.8% from 31.7% in the first quarter of 2026, due to raw material shortages, higher component costs, and an additional inventory provision of 804 million dollars. Year-on-year profit growth was supported by a 47% increase in revenue, driven by strength in AI electronics and ICT infrastructure solutions. The quarter-on-quarter profit decline stemmed more from margin pressure than from the 6% rise in sales. The research team maintained a hold rating with a mid-2026 target price of 320 baht, and recommended switching into KCE and HANA instead.

Bualuang Securities expects the Stock Exchange of Thailand index to climb to 1,700 points by the end of 2026, supported by foreign fund inflows projected to reach 160 billion baht in net buying for the full year. This follows net purchases of around 70 billion baht since the start of the year, driven by strong earnings growth among listed companies, particularly in the energy and petrochemical sectors, and the appeal of high dividend yields in Thai equities. For the second half, the investment strategy focuses on selective stock picking in sectors with positive catalysts. These include power plant operators benefiting from green energy demand, with recommendations for GULF, GPSC, GUNKUL, and WHAUP. The electronics sector is recovering in line with global cycles and AI investment, with KCE as a top pick. Commercial banks offering high dividends are favored, with KBANK and KTB highlighted. Tourism and hotel stocks, where earnings have bottomed out, are represented by ERW and AWC. Consumer goods and food companies poised to gain from hotter weather include CBG and CPF. In portfolio allocation, Bualuang Securities advises investors who can tolerate risk to allocate 60 to 70 percent to equities, split into 30 percent Thai stocks and 70 percent foreign stocks, with the remainder in debt instruments and bonds, primarily focusing on Thai debt securities.

Phillip Securities assesses that the impact of the new US tariff wall on Thai stocks will be limited. Exempted goods include electronic components, communication equipment and devices, computer storage units, and other electronic devices, meaning stocks in the electronic components sector such as KCE, HANA, DELTA, and CCET will see minimal impact. Meanwhile, animal feed stocks like ITC and AAI may experience some effects. In a worst-case scenario, ITC's profit could decline by 240 million baht, or 7.1% from current levels, but the new base price of 18.02 baht still offers 5.88% upside from the current price. Thailand's trade figures for June 2026 continued to expand, with exports growing 8% year-on-year and imports rising 3% year-on-year.

The Trade Policy and Strategy Office of the Ministry of Commerce reported that Thai exports in June 2026 reached 34.66 billion dollars, up 20.8 percent from the same month last year, extending growth for a 24th consecutive month and exceeding market expectations of 13.7 to 15.2 percent. Meanwhile, imports totaled 41.19 billion dollars, rising 50.3 percent, resulting in a June trade deficit of 6.53 billion dollars. For the first half of the year, exports amounted to 196.74 billion dollars, up 17.6 percent, and imports reached 228.49 billion dollars, up 38.0 percent, leading to a cumulative trade deficit of 31.74 billion dollars. Analysts at Yuanta Securities noted that the stronger-than-expected exports and the deficit are factors weighing on the currency, and highlighted five stock groups poised to benefit: rubber, which returned to growth of 12.5 percent after 14 months, supporting STA, NER, and TEGH; processed chicken, supporting GFPT, TFG, and CPF; pet food, which continued to grow 22.3 percent for a tenth straight month, supporting ITC and AAI; canned seafood, which resumed expansion at 17.5 percent, supporting TU; and electronic components, which accelerated growth, supporting SMT, CCET, KCE, and HANA.

Electronics stocks moved higher across the board this morning, supported by a weaker baht and the technology and AI investment trend. At 10:41 a.m., DELTA was at 306.00 baht, up 0.66 percent; KCE at 42.00 baht, up 0.60 percent; HANA at 39.25 baht, up 0.64 percent; SMT at 4.80 baht, up 1.69 percent; and CCET at 9.10 baht, up 0.55 percent. Yuanta Securities noted that the persistently weaker baht is positive for exporters, and the electronic components industry is showing signs of recovery. HANA is supported by Texas Instruments' better-than-expected earnings, while DELTA benefits from Google increasing its AI investment budget. Meanwhile, KCE's target price has been raised to 48.50 baht on expectations that earnings have passed their trough, and SMT remains a stock of interest due to its earnings turnaround potential.

Kasikorn Securities forecasts that KCE Electronics Public Company Limited, or KCE, will report a net profit of 237 million baht in the second quarter of 2026, up 30 percent from the same period last year but flat compared to the previous quarter. First-half 2026 net profit is expected to account for 36 percent of the full-year profit estimate of 1.3 billion baht. Core revenue is projected at 104 million US dollars, up 5 percent from both the same period last year and the previous quarter, supported by higher average selling prices and increased capacity utilization amid a recovery in global printed circuit board demand. The gross margin is expected to be flat year-on-year but slightly higher quarter-on-quarter at 18.3 percent. For the second half of 2026, the research team sees a positive profit trend, with growth expected both year-on-year and quarter-on-quarter, driven by strong seasonal demand in the third quarter of 2026 and expectations of a significant gross margin improvement as major global printed circuit board manufacturers raise average selling prices by around 30 to 50 percent by mid-2026. Kasikorn Securities maintains a buy recommendation on KCE with a target price of 45.00 baht, based on a target price-to-earnings ratio of 33 times, equivalent to 1.5 standard deviations above the five-year historical average.