KCE Gains 17% to Bt52.25 as the Analyst Expects a “Switch” from DELTA
KCE closed the morning session at ฿52.25/share, increased ฿7.75/share or 17.42%, as the analyst expected investors made a switch from DELTA.
The share price of KCE Electronics Public Company Limited (KCE) closed the morning session at ฿52.25/share, increased ฿7.75/share or 17.42% with a trading value of 6,209 million baht.
Phillip Securities Thailand stated that the buying pressure in KCE which led to a sharp spike in the morning session could be due to a switch-play from DELTA (-12.80%). The share price of KCE broke Phillip’s target price at 43.00/share, but the security company still raised KCE as its top pick due to its good fundamentals, cementing with a solid 2020 earnings, which is expected to continue the trend in 2021. The net profit in 2021 is expected to report at 2,013 million baht, increased 67% from 2020 that has been forecasted at 1,208 million baht. The increase would be due to a return in demand and high GPM.
More importantly, KCE also has good cost and expenses management, coupled with the share price has been considered dull in recent months, even though its demand for production had been returned since 3Q20.
