KCE’s 3Q21 Profit Surges 142% to THB604 Million on Revenue Growth and Weak Baht

KCE Electronics Public Company Limited (KCE) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

In 3Q21, KCE recorded sales and net profit of 3,789.0 million baht and 604.1 million baht, respectively, compared to 2,721.8 million baht and 250.0 million baht in the third quarter of 2020.

The improvement in profitability was driven by revenue growth that resulted from slightly higher sales, an adjustment of selling prices that took place in May 2021, benefit from the weak THB, and a decline in the price of copper. The basic earnings per share totaled 1.46 baht for the nine months of 2021.

Consolidated sales revenue in Baht terms in 3Q21 amounted to 3,789.0 million baht, representing an increase of 7.15% Q-o-Q and 39.21% Y-o-Y, while sales revenue in USD terms grew by 1.91% Q-o-Q and 31.94% Y-o-Y, up from a low base in 3Q20 during the first wave of COVID-19. The weakened THB against the US dollar in the period resulted in a gain in revenue recognition in Baht terms of 135 million baht and 164 million baht in Q-o-Q and Y-o-Y, respectively.  

The decrease in volume of PCB sales of 3.71% Q-o-Q was due mainly to a delay in shipments caused by a container shortage problem. Despite the decreased volume sold Q-o-Q, sales revenue in 3Q21 increased, which resulted mainly from the weakened THB and an increase in product selling prices that took effect entirely in the third quarter. Nevertheless, sales revenue was adversely impacted by unrealized consignment sales of 96.5 million baht and an ongoing backlog of orders at the end of the quarter. The advancement of the third wave of COVID-19 had a major impact on operations in the third quarter.