KCE and HANA Gains 2% on Weak Thai Baht as Analysts See Further Growth in IC Industry

Stocks related to electronic parts edged higher as Thai baht – US Dollars maintained slightly above THB31, while dropping 0.54% in 5 days and 3.04% in a month, resulting in higher profit for exporting operators.

 

As of 10:36 local time in Thailand on Friday, Hana Microelectronics Public Company Limited (HANA) rose ฿1.25/share or 2.23% to ฿57.25/share with a trading value of 328 million baht.

 

Maybank Kim Eng has given a “BUY” recommendation on HANA with a target price at ฿68.00/share, expecting revenue and net profit to improve QoQ and YoY in 1Q21, resulting from strong purchasing orders in the IT and Autos industry. Also, weaker than expected of Thai baht (4% QoQ) will draw additional attention to the market.

 

KCE Electronics Public Company Limited (KCE) gained ฿1.00/share or 1.77% to ฿57.50/share with a trading value of 383 million baht.

Kasikorn Securities (KS) has given a “BUY” recommendation on KCE with a target price of ฿65.00/share. KS expected growth of the integrated circuit industry (+9.5%) and global auto market will be positive for KCE. A 6.7% YoY rise in electronics equipment/parts in February 2021 is another factor supporting our bullish view of electronics exports and KCE’s revenue in 1Q21. Every Bt1/US$ baht depreciation will drive KCE’s earnings up by 11.8%.

 

Finansia Syrus Securities (FSS) has given a “BUY” recommendation on KCE with a target price at ฿63.50/share and HANA at ฿63.00/share on weaken Thai baht, expecting positive factors to electronics, auto parts and rubber gloves exporters.