KCE-HANA Skyrocket in the Afternoon Session as Investors Speculate on 2Q21 Earnings

As of 15:56 local time in Thailand, the share price of KCE Electronics Public Company Limited (KCE) rose ฿8.75/share or 13.89% to ฿71.75/share, with a trading value of 2,773 million baht.

Meanwhile, the share price of Hana Microelectronics Public Company Limited (HANA) rose ฿4.25/share or 8.21% to ฿56.00/share, with a trading value of 1,796 million baht.

 

Kasikorn Securities maintained its positive view toward KCE in the short to long term due to high demand for PCB, recommending “BUY” with a target price of 80 baht per share.

Despite the fact that rising copper prices are putting pressure on production costs, the company can negotiate for an increase in selling price and pass the cost burden on to consumers instead. In addition, as compared to the previous year and quarter, KCE is another business that is projected to be profitable.

 

Finansia Syrus Securities has given HANA a “BUY” recommendation with a target price of 63 baht per share, citing the CEO’s statement in the company’s guidance that orders for IC and PCBA are still high. These are the main factors that will help the business expand in the next 2-3 years. As a result, profit in 2Q21 is expected to increase in comparison to the previous quarter and year.   

The Chip shortage, which seems to be taking a long time to recover, is currently unaffected. However, there will be a follow-up in the second half of 2021, which could pose a danger if not resolved. The profit for the years 2021-2022 is expected to rise by 26% over the previous year and by 7% over the previous year.