KCE Electronics Public Company Limited or KCE It is one of the stocks whose stock prices have been hotly adjusted in the past few days. From the disappointment of investors in the 4Q22 performance that the company announced was lower than market expectations.
However, the way Wealthy Thai surveyed the stock price of KCE For the past 6 months (as of 10 Aug. 22 – 9 Feb. 23), there was a decrease of 22.40.% Or come down to 48.50 baht, causing investors to raise doubts and questions that Such shares will be time to accumulate or must be sold to cut losses. Today we have picked up some interesting tips to share with you this time.
By analyzing Pai Securities, giving advice “sell” Fair value of Bt43 following a 6% revision of 2023 profit to Bt2.2bn from Bt2.4bn to reflect higher utility and overhead costs. And the weak economy in 2023 will cause earnings to stumble this year.
For 2023, US dollar sales are expected to be down 5% from the previous year. while sales of the automotive group declined by 3% in 2022 and are expected to continue to decrease in 2023, according to historical data indicating that the year in which global automotive sales fell for two consecutive years, which would make sales Sales of KCE will be negatively affected
The gross profit margin is expected to be at 24.2% despite falling copper prices and improving supply shortage situation. But the cost of oil and utilities are still high. As for the strong baht, it will affect the gross margin in the first half of 2023 (where KCE’s gross margin has a 56% correlation with the dollar against the baht since 2012)
The analytical side of the securities. Innovest X provides advice for investors with high risk appetite.find a moment to buy” and gave a target price of 61 baht because the share price KCE that has adjusted down to an interesting level And the earnings outlook will return to good growth again since the 2nd quarter of 2023 from the rapid increase in demand (Pent-up demand) and is expected to continue to be good until 2024 with a major expansion of production capacity
with a positive view on KCE. in the medium to long term by the highlight of KCE It is one of the top 10 largest circuit board manufacturers in the world for automobile manufacturers, especially in Europe and the United States, which will benefit from increasing demand for circuit boards in cars. Both in the growth of electric cars (EV) There are also electronic product components. (That requires a circuit board) per car than conventional combustion cars about 3-6 times.
For this reason, KCE Therefore, there is a plan to expand production big time. By increasing the production capacity of special high-margin circuit boards by another 1 million square feet per month. (From the current production capacity of 3.6 million square feet per month) is expected to start production in the second half of 2024, which will be in line with the growing demand for complex circuit boards for cars in the future.
