KCE’s 1Q21 Earnings Rise 18%, Reporting an Acquisition of Land for Business Expansion

KCE Electronics Public Company Limited (KCE) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

KCE recorded a net profit of 503 million baht in 1Q21, increased 18.48% from a net profit of 424 million baht in 1Q20. The strong performance was the result of better efficiency, revenue growth from an automotive market recovery and the effect of a change in product mix, whereas the gross margin widened and SG&A increased slightly. This resulted in basic earnings per share of Bt0.43 in 1Q21.

 

Consolidated sales revenue in baht terms in 1Q21 was reported at 3,414.9 million baht, representing a slight decline of 0.09% QoQ but an increase of 4.76% YoY, while sales revenue in USD terms grew by 0.74% QoQ and 8.15% YoY. The strengthened THB against the US dollar in the period caused a loss in revenue recognition in baht terms by 16 million baht and 50 million baht in QoQ and YoY, respectively.

 

The gross profit margin as a percentage of sales widened both QoQ and YoY to 25.03% in 1Q21 following a significant increase in production capacity utilization, which reflected a firm recovery of order bookings from the beginning of the first quarter. However, the margin was pressured by the strengthened THB against the US dollar and a continual increase in the price of LME Copper, which led to the cost of goods sold increased by 1.94% YoY. In addition, the increase in volume of HDI PCBs of 51.35% YoY, helped reduce the cost of goods sold despite an annual adjustment in selling price.

 

In addition, the Board of Directors’ Meeting of KCE Electronics Public Company Limited (KCE) No. 5/2021, held on May 11, 2021, passed a resolution approving the purchase of asset, which is the Land in Rojana, from the seller, Sanyo Semiconductor (Thailand) Co., Ltd. with a transaction value of 221 million baht.

The Asset is located at 1/7 Rojana Industrial Park , Moo 5, Khanham, Uthai , Phra Nakhon Sri Ayutthaya, Thailandthe total area of 67-2-91 Rai. The purpose of the investment is to support business expansion, as well as to enhance long-term value for shareholders.