The share price of KCE Electronics Public Company Limited (KCE) rose as much as ฿5.00/share or 6.78% to ฿78.75/share in the morning session on June 30, 2021, with a trading value of 2,063 million baht.
KCE closed the morning session at ฿77.50/share, increased ฿3.75/share or 5.08%.
Capital Nomura Securities (CNS) gave a “Speculative-Buy” recommendation on KCE, seeing a strong business outlook as the company has pending orders to November, following higher demand for semiconductors in Europe, and to hoard for more in case of the semiconductors shortage.
In the meantime, KCE will also increase its selling price by more than 5% in 2Q21 to offset the rising copper price.
CNS estimated 2Q21 earnings at 559 million baht, representing an increase in both QoQ and YoY, while earnings in 2021 are forecasted at 2.2 billion baht, representing an increase of 103% YoY due to a 28% growth of sales revenue and gross profit margin.
In addition, the baht depreciation, SET50 addition and the new measure by the Chinese government to slow down its commodity inventories, including copper, will be the catalysts to KCE.