KCE Electronics Public Company Limited

Kasikorn Securities stated that the World Bank recommends Thailand accelerate its use of AI to boost productivity and escape the middle-income trap, after finding that only 12% of Thai businesses use AI, compared with 43% in the United States. The government should urgently develop workforce skills, establish clear regulations, and ensure energy security for data centers. Meanwhile, Thailand's manufacturing base, services sector, and AI hardware supply chain are key strengths. The brokerage views this as structurally positive for the industrial estate, utilities, power plant, digital infrastructure, and electronics sectors, such as WHA, AMATA, WHAUP, GULF, BGRIM, DELTA, KCE, and HANA.

Kanthara Ladawan na Ayudhya, an executive director at Finansia Syrus Securities Public Company Limited, or FSS, said on the stock news program Stock Market Insight that the Thai stock market still faces its main pressure from rising US government bond yields and the direction of global crude oil prices. If Brent crude holds above 102 US dollars per barrel, that would be an important support level from which prices could rebound, but if it falls below 100 US dollars and moves around the low 90s, that would ease concerns and be more positive for the market. Oil prices are the most important variable reflecting the severity of war and geopolitics, which in turn affects inflation and interest rates. If oil prices decline, foreign fund flows are expected to return to the Thai stock market. As for the recent selling by foreign investors, he views it as stemming from the rise in bond yields rather than concerns over domestic flooding. Currently, cumulative net foreign buying stands at around 10 billion baht. As for the electronics sector, although it has faced selling pressure from concerns over revenue and delays in chip deliveries, market demand remains high. KCE and HANA still have upward trends, while DELTA is a market-leading stock and a global megatrend, with its share price still below the fundamental value that FSS estimates at 290 baht. As for commercial banks such as TISCO, which is preparing to report earnings among the first, the initial assessment is that results may be flat. In the recent period, bank stocks rose more than 30% before facing profit-taking that reduced returns to 25-26%. The standout stock that FSS recommends is I-Tail Corporation Public Company Limited, or ITC, which operates a pet food business, with a next-year target price based on fundamentals of 21.30 baht, as net profit is expected to gradually recover.

Shares of KCE Electronics Public Company Limited, or KCE, rose 3.85% to 81.00 baht on trading value of 1.51264 billion baht after Krungsri Securities Public Company Limited estimated that normal profit in the third quarter of 2026 will come in at about 495 million baht, up 66% from the same period a year earlier and up 119% from the previous quarter. Revenue for the third quarter of 2026 is expected at about 4.11 billion baht, up 19% from a year earlier and 15% from the previous quarter, driven by the printed circuit board business, or PCB, which accounts for roughly 85% of total revenue. The gross profit margin is expected to rise to about 25%, from 18.9% in the second quarter of 2026 and 21% in the third quarter of 2025, thanks to operating leverage and higher selling prices. Krungsri Securities maintained its normal profit forecast for 2026 at about 1.404 billion baht, up roughly 77% from the previous year, and expects profit in 2027 to accelerate by another 82% to 2.562 billion baht on revenue projected to grow about 25% to 18.514 billion baht. It kept its buy recommendation and a 2027 target price of 97 baht per share, naming KCE its top pick in the electronic components sector.

The World Bank has raised its forecast for Thailand's GDP growth this year to 2% from 1.3%. TTBB Wealth Securities said the upgrade was driven by exports of AI-related goods and investment in data centers, which helped offset the impact of higher energy prices. For 2027 and 2028, Thailand's economy is expected to expand by 2.3% and 2.4%, respectively. Risks to watch include conflict in the Middle East, higher US import tariffs, a weak tourism sector, the effects of a severe El Niño that could hit farmers' incomes, and household debt as high as 87%. Although the upward revision to the GDP forecast is a positive factor, growth remains concentrated in only a few industries, so the research team is using a selective strategy, focusing on export groups with strong growth and groups that benefit from data center investment, namely DELTA, KCE, HANA, STECON, GULF, GUNKUL, BGRIM and GPSC.

Analysts say electronics stocks remain the group leading the market higher, driven directly by the artificial intelligence infrastructure investment cycle, or AI capex cycle. Suwat Wattanapornprom, Director of Investment Strategy at Krungsri Securities, noted that leading global chipmaker Nvidia is targeting growth of as much as 70–100%, reflecting enormous trading opportunities. Meanwhile, the GPU shortage is likely to ease as production capacity rises and new manufacturers enter, bringing supply into better balance. On the earnings outlook, electronics stocks are expected to post continued improvement in the third quarter of 2026, and should sustain their growth momentum in the fourth quarter of 2026, supported by a steady stream of forward orders under the capex cycle extending through 2026 and 2027. The top picks are Delta Electronics (Thailand), or DELTA, with a fundamental target price of 320 baht, and KCE Electronics, or KCE, with a fundamental target price of 97 baht. Analysts at Phillip Securities (Thailand) expect DELTA's third-quarter 2026 net profit at 8.319 billion baht, up both year-on-year and quarter-on-quarter, and have rolled their target price forward to 2027 at 330 baht. Analysts at KGI Securities (Thailand) expect KCE's third-quarter 2026 core profit to rise to 514 million baht, up 78% from the same period a year earlier and 113% from the previous quarter, with core profit for the first nine months of 2026 likely to rise to 937 million baht, up 45% year-on-year, and estimate a end-2027 target price of 62 baht.

Long-term US bond yields have surged to their highest level in 24 years, pressuring the baht to weaken against a continuously strengthening US dollar. Kasikorn Research Center reported that the 10-year bond yield reached 5.349%, the highest since April 2002, while the 30-year bond yield also climbed to its highest level since May 2002, amid expectations that the Fed may raise interest rates again before the end of this year. TTB Wealth noted that the widening gap between Thai and US bond yields is the main factor pressuring the baht to weaken to 33.68 baht per US dollar, causing foreign investment flows to continue exiting the Thai capital market. Meanwhile, Krungsri reported that the 2-year bond yield rose 0.01% to 4.84% and the 10-year rose 0.03% to 5.31%, and recommended stocks with clear profit growth, namely AWC, KCE, and DELTA. Kasikornthai reported that US bond yields maturing in 5 to 30 years rose 0.07 to 0.12%, reflecting concerns over inflation and the fiscal deficit, while medium- to long-term Thai bonds rose only 0.02 to 0.04% in response. It expects the Fed to raise rates by 0.25% in December 2026 and March 2027, reaching a level of 4.50%, while Thailand is expected to keep its policy rate at 1.00% through the end of 2026. The weaker baht also directly benefits electronics export stocks, which are supported by both the currency and strong order books. Notable stocks include DELTA, KCE, and HANA.

Trinity Securities has released its first calculation for the 1H27 review cycle, forecasting which stocks will be added to and removed from the SET50 and SET100 indices, based on data through September 30, and will wait for actual data through the end of November. The stocks expected to be added to the SET50 index are KCE, SPRC, IRPC and CENTEL, all four with 99.99% confidence. The stocks expected to be removed from the SET50 are LH, OSP, TIDLOR and MRDIYT, also with 99.99% confidence. The stocks expected to be added to the SET100 index are MBK, TTW and PSL, while STPI could slip in as the fourth if HANA unexpectedly drops out of the index. The stocks expected to be removed from the SET100 are AURA, QH and MOSHI, and HANA must avoid being placed on the Trading alert list throughout October and November. Strategically, Trinity recommends gradually buying for speculation the stocks certain to be added to the SET50 index, namely KCE, SPRC, IRPC and CENTEL, with KCE the most attractive because it has the largest market cap, and recommends avoiding stocks that may be removed from the SET50, namely LH, OSP, TIDLOR and MRDIYT, over the next one to two months. Meanwhile, Kasikorn Securities noted that the Prime Minister has ordered all agencies to accelerate preparations to host the 2026 World Bank-IMF meeting, which is expected to draw more than 10,000 participants from at least 19 countries, focusing on upgrading airports, airlines, visas, immigration, security and public health, and using this stage to attract investment and build confidence in the Thai economy. This is seen as positive sentiment for stocks related to travel, tourism, airports, hotels and convention centres, such as AOT, AWC, CENTEL and ERW.

Globlex Securities, or GBS, expects the Thai stock index in October 2026 to move in a volatile Sideway Down pattern, with a trading range of 1,520-1,600 points. The main pressure comes from global WTI crude oil prices surging past 100 dollars per barrel amid geopolitical tensions in the Middle East, military confrontations in the Gulf of Oman and the Strait of Hormuz, combined with OPEC+ production controls, before prices fell back below 90 dollars per barrel after G7 intervention and Saudi Arabia helping to cool the rally. Miss Wilasinee Boonmasungsong, Assistant Managing Director of Globlex Securities, said inflation pressure prompted the Bank of Japan to raise its policy interest rate to 1.25%, the highest in 31 years, while investors worry the FED may raise rates another one to two times this year after already hiking once. The market also faced net foreign capital outflows of about 20,000-25,000 million baht in September and temporary impact from flooding, which Kasikorn Research Center estimated caused preliminary damage of 7,000-17,000 million baht. Mr Watcharain Jongyanyong, Director of the Research Department at Globlex Securities, recommended an investment strategy in two groups of standout stocks: stocks benefiting from post-flood repairs, recommending GLOBAL, DOHOME, HMPRO, TASCO, DCC and DRT, and export stocks with continued growth prospects, recommending STA, TEGH, NER, AAI, ITC, TU, CCET, HANA, KCE and DELTA.

TTB Wealth stated that the widening gap between Thai and US bond yields has pressured the baht to weaken, recently standing at 33.68 THB/USD, causing foreign fund flows to continue flowing out. However, the weaker baht benefits several groups. The electronics export group gains from both the weak baht and strong order volumes; preferred stocks are DELTA, KCE, and HANA. The food export group stands out for high dividends and still-laggard prices; preferred stocks are TU and ITC. The tourism group benefits from entering the high season for tourism; preferred stocks are AOT, ERW, CENTEL, and MINT, making a total of 9 beneficiary stocks.

Pie Securities reported that US non-farm payrolls and the unemployment rate came in below analyst expectations, pushing bond yields lower and supporting US stock markets, with the DJIA closing up 250 points, or 0.49%, and the S&P500 closing up 0.7%. Meanwhile, Brent crude oil fell 0.06% after European leaders planned to release strategic oil reserves, with Europe's release volume at 100 million barrels, equivalent to just 5 days of shipments through the Strait of Hormuz compared with 20 million barrels per day. The standout gainers on Friday night were semiconductor stocks. For the Thai stock market, Pie Securities estimates the SET index range at 1560 to 1580 points, viewing the market as having moved past flood concerns, with foreign investors beginning to sell less on a net basis. It recommends a short-term strategy of trading TECH stocks in the DELTA HANA KCE group, supported by the rise in US semiconductor stocks. Recommended stocks include CPN with a target price of 80 baht and WHA with a target price of 5.6 baht.

Four brokerages assess that the flood situation in Bangkok and its vicinity in 2026 will cause limited economic damage, as the waters have not yet spread into industrial estates or key production bases, unlike the great flood of 2011 that disrupted production chains on a wide scale. Finansia Syrus Securities estimates preliminary damage at around 20–40 billion baht, or roughly 0.1–0.2% of GDP, and views pressure on the stock market as reflecting short-term concerns rather than affecting earnings. Kasikorn Securities estimates damage at about 3,000–4,000 million baht per day, or roughly 20–30 billion baht per week; if severe conditions persist for one week, it could drag on GDP by about 0.1%. As of 27 September 2026, 25 provinces and 128 districts have been affected, with about 545,000 people impacted, compared with 2011 when floods hit 66 provinces, affected about 13.6 million people and caused damage of approximately 1.4 trillion baht. CGS International notes that Bangkok and its vicinity account for about 47.3% of the country's economy, and divides the situation into two scenarios: if water can be drained within 4–5 days, the impact will be limited, but if it drags on beyond 5 days, it could weigh more on purchasing power and consumption. For stocks that benefit after the waters recede, Finansia Syrus favours HMPRO, GLOBAL, DOHOME, TOA, SCGD, DCC and DRT, while Kasikorn favours retail and food groups as well as the ICT group. Pi Securities estimates a SET range of 1,590–1,620 points and picks BDMS, BCH, CPALL, PTT, PTTEP, PTTGC, TOP, ITC and TU, while CGS International says to watch DELTA, HANA and KCE if the SET falls below 1,600 points, on the theme of investment in artificial intelligence and digital infrastructure.

Asia Plus Securities, or ASPS, is advising investors to raise their cash allocation to 30-40% of their portfolios to reduce risk from volatility and wait for the right moment to accumulate fundamentally strong stocks. The recommendation comes amid pressure from the Persian Gulf situation, where the US Department of Defense is preparing to send another aircraft carrier along with more than 10,000 marines into the area if Donald Trump escalates his handling of Iran. That has pushed Brent crude to 102.3 US dollars per barrel. Meanwhile, European inflation in September came in higher than expected in several countries, with France at 3.0%, Spain at 4.9%, Italy at 4.1% and Germany at 3.3% year on year, driving overall eurozone inflation to 3.7% year on year. On the Thai side, the stock market saw net selling of 771 million US dollars, as 10-year bond yields worldwide rose by 0.20% to 1.50% over the past month, pressuring Thailand's market earnings yield gap down to 3.7% from 5.3% early in the year, while the baht weakened into a range of 35 to 37 baht per dollar. However, the weaker baht is a positive for three main business groups: exporters such as TU, ITC and CPF; the medical group such as BH, BDMS, BCH and PR9; and the tourism group such as AOT and CENTEL. In addition, the research team has selected five standout stocks for the day: AMAT01, MRVL06, KCE, SCC and CK. KCE is expected to see third and fourth quarter profits recover both quarter on quarter and year on year, benefiting from a shortage of PCB circuit boards. SCC drew a positive market response after excluding its olefins business, while CK benefits from accelerated disbursement and government project bidding, with third quarter results expected to mark the year's peak.

The Investment Analysts Association, or IAA, estimates that the SET Index in the fourth quarter of 2026 will move within a range of 1,537 to 1,683 points and is expected to close the year 2026 at 1,680 points. Sombut Naravuttichai, secretary-general of the association, said the survey of analysts and fund managers from 25 companies has not yet incorporated the impact of the flood situation, and puts the SET Index target for the end of 2027 at 1,727 points. It also forecasts average market EPS of 103.38 baht for 2026 and 104.29 baht for 2027, representing average EPS growth of 16.41% in 2026. Five stocks are recommended by four or more research houses in agreement: BDMS, KBANK, DELTA, GULF and CRC. The association recommends increasing weighting in tourism, healthcare, banking, power plants, utilities, commerce and electronics, while most analysts advise avoiding energy and petrochemical stocks, airlines and property. Wichit Arayapisit, senior director of the securities analysis department at Kasikorn Securities, said the firm has raised its SET Index target for the end of 2027 to 1,680 points from 1,620 points, and estimates EPS this year at 110 baht per share, while next year it is expected to fall about 5% to 105 baht per share. It recommends a defensive strategy for the fourth quarter of 2026, favouring electronics such as DELTA, KCE and HANA, power plants such as GULF and GPSC, banks such as KTB and KKP, and hotels and tourism such as CENTEL and AWC.

Asia Plus Securities Public Company Limited, or ASPS, recommends that investors raise their cash holdings to 30% - 40% of their portfolios and shift strategy toward seeking out "stocks resilient to selling pressure" to cope with pressure on the Thai capital market from both domestic and foreign sources, particularly the selling by foreign investors who dumped Thai stocks for 7 consecutive trading days between September 22 and 30, totaling more than 30,572 million baht, pushing trading value to exceed 100 billion baht. The safe-haven stocks are divided into two main groups. The first group benefits from the weak baht amid foreign selling, namely CPF, ITC, KCE and HANA. The second group consists of low-volatility stocks entering their high season (Defensive & Healthcare), namely BH, BDMS, BCH and PR9. Meanwhile, the 5 standout stocks and DRs recommended to cope with the volatile market conditions are AAPL80, on the positive factor of the upcoming launch of 3 new smartphone models in the middle of this month; GOOGL01, on positive sentiment from the launch of the AI model "GEMINI 4 ARGON" that has risen to number 1 in the world; BDMS, on its third-quarter 2026 operating results that are clearly recovering, with revenue in July-August growing 8-9% compared with the same period last year, while the share price remains a laggard; CK, after the unlocking of the barcode law issue supports progress on the 2027 budget and new bidding projects, along with receiving dividends from its subsidiaries BEM, CKP and TTW; and ITC, whose fourth-quarter 2026 profit trend is expected to recover strongly compared with the previous quarter and which is a stock that directly benefits from the weakening baht trend.

Koraphat Worachet, Head of Research at Krungsri Securities Public Company Limited, or KSS, said on the stock-focused market news program on October 1, 2026, that the Thai stock market has a chance to begin forming a base from now on if there are no additional significant negative factors from the flood situation. He assessed that overall water conditions have about a 65% chance of having already passed their peak, although some areas still face the risk of another round of flooding, the severity is not expected to exceed that of the past weekend. On the impact, KSS stated that water levels in the northern region that could flow down and add to the situation remain at about 70-75% of the level seen during the great flood of 2011, and if the impact is limited to one to two weeks, it could affect GDP by about 0.3%, compared with 2011, when the impact on GDP reached as much as about 3%. On investment strategy, KSS recommended six standout stocks: KBANK and KTB in the banking group, on the trend of large corporate customer loans growing in line with investment in data centers and AI infrastructure; KCE and DELTA in the electronic components group, with KSS raising its target price for KCE to 69.70 baht; PTTGC in the petrochemical group, on its joint venture cooperation with the Siam Cement Group and the chance of support from the MSCI index review in November; and COM7 in the consumer and finance group, on the trend of continued growth in smartphone and IT equipment sales. It also gave a support range for the SET Index at 1,545-1,550 points and a resistance level at 1,580 points.

Asia Plus Securities warns that the Thai economy is facing multiple compounding negative factors at once. Foreign investors sold Thai stocks on a net basis for seven consecutive trading days, totaling 30.572 billion baht between September 22 and 30, pushing trading value above 100 billion baht, with only four SET100 stocks closing higher. The main pressure comes from the 10-year US government bond yield, which surged to 5.30%, the highest since 2007, while US inflation remains above the 2.0% target after the August 2026 PCE index expanded 3.4%. Domestically, the Royal Irrigation Department increased water discharge from the Chao Phraya Dam to 2,500 cubic meters per second and expects water from Nakhon Sawan to reach 3,000 cubic meters per second on October 2. It estimates flood damage over one week could reach 5 billion to 10 billion baht and could push third-quarter 2026 GDP down to 2.1% to 2.2%. At the same time, during Golden Week from October 1 to 7, Thailand faces image risks from flooding and airport baggage problems, while the public debt-to-GDP ratio stands at 67.45%, near the 70% fiscal discipline ceiling. The research team recommends shifting strategy from seeking rising stocks to seeking stocks resilient to selling pressure, and raising cash holdings to 30% to 40% of the portfolio, choosing stocks that benefit from a weak baht such as CPF, ITC, KCE and HANA, along with low-volatility and healthcare names such as BH, BDMS, BCH and PR9.

Shares of KCE Electronics Public Company Limited, or KCE, rose 4.32% to 78.50 baht on trading value of 995.24 million baht after Kiatnakin Phatra Securities, together with BofA Global Research, initiated coverage of KCE with a buy rating and raised its target price to 104 baht from 67.75 baht, based on a target price-to-earnings ratio of 38.1 times. Analysts believe KCE's 2025 earnings have likely passed their trough and that the company is entering a new upcycle, forecasting net profit of 1.529 billion baht in 2026, up 95% from the previous year, and 3.212 billion baht in 2027, up 110% from the previous year and about 69% above market estimates. For 2028, net profit is expected to rise further to 4.174 billion baht. The drivers come from the recovery of the PCB industry, growing PCB demand in EVs and software-defined vehicles, and tightening automotive PCB supply amid the AI boom. The satellite communications business is expected to account for about 16% of PCB revenue in 2027, rising to 30% in 2028. KCE is also in talks with Tesla to make PCBs for humanoid robots, having passed part of the qualification process and awaiting final design approval. BofA estimates the global humanoid robot market could be worth as much as 100 billion US dollars by 2033, with global shipments rising nearly fivefold from about 290,000 units in 2027 to 1.2 million units in 2030.

Electronics sector stocks rose sharply across the board on September 29, moving against the decline in the Thai stock index. KCE Electronics Public Company Limited, or KCE, climbed 11.07%, or 7.50 baht, to close at 75.25 baht. Next came Cal-Comp Electronics (Thailand) Public Company Limited, or CCET, up 4.42%, or 0.40 baht, to close at 9.45 baht, and Hana Microelectronics Public Company Limited, or HANA, up 2.44%, or 1.25 baht, to close at 52.50 baht. Naphan Jaisaen, deputy manager of the research department and a fundamental investment analyst covering capital markets at Bualuang Securities Public Company Limited, said KCE received positive news flow from negotiations to develop printed circuit boards, or PCBs, jointly with Tesla for use in humanoid robot projects, artificial intelligence technology, and communication systems. He assessed that a price of 60 to 65 baht reflects value from the existing business and product price increases, while 70 to 75 baht reflects orders tied to Tesla, and 80 to 85 baht reflects the chance of winning orders related to AI technology. He recommended waiting to accumulate shares in the 60 to 65 baht range. As for HANA, he said it has already traded on the AI story ahead of actual earnings figures, giving a price range of 50 to 55 baht and recommending waiting for a pullback before buying. Meanwhile, an analysis by Kiatnakin Phatra Securities Public Company Limited recommended buying KCE with a target price of 104 baht and raised its target price for HANA to 61 baht from 42 baht, while lifting its profit forecasts for 2026 and 2027 by 8% and 31% respectively.

The analyst at TTB Wealth Securities Public Company Limited has upgraded KCE stock to "Buy" from "Sell," raised its target price to 100 baht from 31 baht, and lifted its profit forecasts for 2026-2029 by 0.6%, 35%, 95% and 137% respectively. The analyst believes the market share KCE lost to Chinese competitors is recovering as more orders flow in amid geopolitical factors, since KCE is a Thai company with production bases in Thailand. EPS for KCE is now expected to grow 85%, 107% and 38% in 2026-2028, while its customer base is expanding from Europe to the United States and existing US customers are increasing their orders. Dollar-denominated sales are expected to grow 21%, 64% and 17% in 2026-2028, compared with a decline of 9% per year in 2023-2025. KCE may also benefit from a shortage of a key raw material, fiberglass, for another one to two quarters, which helps ease price competition. As for the profit outlook for the second half of 2026, third-quarter 2026 profit is expected at 441 million baht, up 51% from a year earlier and 83% from the previous quarter, while fourth-quarter 2026 profit is expected at 573 million baht, up 315% from a year earlier and 30% from the previous quarter.

Kiatnakin Phatra Securities Public Company Limited, or KKPS, issued a research note dated 29 September 2026 recommending a "Buy" on KCE Electronics Public Company Limited, or KCE, with a target price of 104 baht, and maintaining a "Buy" on Hana Microelectronics Public Company Limited, or HANA, while raising its target price to 61 baht from 42 baht. It views both companies as entering a new growth cycle driven by a recovery in their core businesses and opportunities from artificial intelligence, or AI, related operations. For KCE, the research team sees it entering an upcycle in the printed circuit board, or PCB, business, expecting normal earnings per share to grow by about 95% in 2026 and 110% in 2027, which is about 69% above the market average. It expects net profit attributable to the company after excluding special items of about 1.529 billion baht in 2026, rising to 3.212 billion baht in 2027 and 4.174 billion baht in 2028. The communications business, especially PCBs for low Earth orbit, or LEO, satellites, is expected to increase its share to about 16% of PCB revenue in 2027 and 30% in 2028. As for HANA, KKPS raised its 2026 and 2027 earnings forecasts by 8% and 31% respectively, expecting profit growth of about 20% in 2026 and 53% in 2027, supported by a rise in capacity utilisation in its OSAT business in Ayutthaya province to 62% from 55%. It expects net profit attributable to the company after excluding special items of about 999 million baht in 2026, rising to 1.533 billion baht in 2027 and 1.78 billion baht in 2028. Meanwhile, two of HANA's three AI projects, Phononic TEC and High-density PCBA, have begun ramping up production and are expected to generate combined revenue of about 2.5 to 3.5 billion baht in 2027.

KCE shares closed the morning session at 74.75 baht, up 10.33%, driven mainly by a broker upgrading its target price to 104 baht. Kiatnakin Phatra Securities maintained its buy recommendation and sees strong profit growth potential for KCE as it enters a new growth cycle. The company's estimated 2026 profit is expected to surge 95%, reflecting a recovery in the automotive industry and an upcycle in the PCB industry, which is the company's core business. PCB prices are entering an upcycle amid rising demand for electronic components driven by the technology and AI cycle, while signs of tight PCB supply give the company room to raise selling prices. Kasikorn Securities sees KCE benefiting from PCB price increases from the second half of 2026 onward. As for third-quarter 2026 profit trends, they are improving on higher PCB selling prices and cost controls that are starting to bear fruit, especially for chemical costs, which account for a relatively high share of cost of sales, while lower oil prices help ease pressure from raw material costs. There is also speculative interest in electronics stocks after the broader technology and semiconductor industry recovered. Earlier, Bualuang Securities also picked KCE as one of its top stocks on the global technology and manufacturing cycle theme.

Kasikornbank Securities said Thailand is accelerating negotiations on a Thailand-EU FTA, which is now more than two-thirds complete, with a decisive round of talks set for September 28. It is also reviving the Thailand-UAE CEPA after a hiatus of more than three years. Both agreements would help expand exports, attract FDI and diversify markets toward Europe and the Middle East, though conclusions are still needed on sensitive issues covering agriculture, medicine and regulations. The research team views this as a positive for sentiment toward food exporters, autos, electronics and industrial estates such as CPF, TU, DELTA, KCE, HANA, AMATA and WHA, but the impact on earnings will become clear only after negotiations conclude and the agreements take effect.

Analysts at Kasikorn Securities remain positive on the electronics group in the fourth quarter of 2026, expecting second-half 2026 earnings to accelerate notably, led by DELTA benefiting from capacity utilization and recovering margins, HANA from the ramp-up of AI-related products, and KCE from higher PCB sales volumes and upward ASP adjustments. AI and data centers are the main structural growth drivers underpinning continued demand for power electronics, advanced PCB, PCBA, and semiconductor components, supported by high demand from hyperscalers, gradually easing component constraints, an improved product mix, and a weaker baht, which is a positive factor for exporters' gross margins. However, risks remain from high raw material costs, particularly copper, fiberglass, copper clad laminate, and various electronic components, as well as the uneven recovery of end markets unrelated to AI, especially the automotive and EV segments. Strategically, the analysts recommend gradually accumulating electronics stocks on market dips, with DELTA rated Buy at a 300 baht target price, HANA rated Buy at a 56 baht target price, and KCE rated Hold at a 60 baht target price.

Mr. Wikit Thirawannarat, IAA, Assistant Managing Director and Head of Investment Strategy at Bualuang Securities, unveiled a portfolio-adjustment strategy for the final stretch of the year in the fourth quarter of 2026, recommending investors rotate among sectors in step with the market. Stocks with their main revenue from overseas remain the key driver, because domestic purchasing power alone is not enough to move the market. The groups that outperformed the market in the third quarter of 2026 were those tied to the global economy and commodities, including petrochemicals, refineries, shipping stocks such as RCL and PRM, agricultural and food-export names such as TVO, TU and ITC, and electronic components such as KCE and HANA. Meanwhile, groups tied to domestic consumption, such as telecoms ADVANC and TRUE and retailers CPALL and CPAXT, rose more slowly than the market. Three investment themes lead the way. First, refineries and petrochemicals, where supply is tight and global demand is strong, with TOP trading at a price-to-book ratio of only about 0.7 times and paying consistent dividends. Second, power plants, expected to be the star performer in the fourth quarter, driven by the build-out of data centers and production bases by foreign companies, clarity on direct PPA contracts, and the power development plan. Third, energy and technology infrastructure, which benefits from transmission systems, substations, smart grids, smart meters, rooftop solar and submarine cable projects. As for industrial estates, after a big run-up in the first and second quarters of 2026, they are expected to enter a period of consolidation and rebound within a sideways range. On external factors, the surge in bond yields worldwide is a highlight to watch; if yields start to fall, that would be a key turning point for the stock market. The Bank of Japan may keep raising rates through the middle of next year, ending at around 1.75 to 2.0 percent, South Korea at 3.5 percent, Europe at 3.0 percent in the first quarter of next year, and the US Federal Reserve may hike another one to two times. As for new US tariffs, the assessment is that they will target specific rival countries rather than be imposed across the board, so Thailand is likely to escape them and may even benefit from cheaper imported raw materials such as soybeans and soybean meal, which would lower animal-feed costs and support meat-export groups such as chicken and pork. On investment strategy, short-term traders are advised to rotate through sector rotation, alternating between banks and commodities, while long-term investors are advised to focus on infrastructure and power plants, with standout large-cap stocks capable of winning projects and co-investing in infrastructure being GULF and PTT.

InnovestX Securities assesses that the Thai stock market is starting to gain supportive themes after Fitch Ratings revised its outlook on Thailand's creditworthiness from Negative to Stable, while affirming the sovereign rating at BBB+. As a result, Fitch Ratings, Moody's Ratings, and S&P Global Ratings all now hold a Stable outlook on Thailand. Fitch views the improved government stability as reducing political uncertainty, and expects Thailand's economy to expand 2.3% in 2026, close to 2.4% in 2025, supported by investment in AI and data centers as well as consumption stimulus measures. It also expects general government debt to stay below 63% of GDP in fiscal 2028, an improvement from the previous estimate of 65%. On the external front, Fitch sees Thailand's position as still strong, expecting the current account to post a temporary deficit of 0.5% of GDP in 2026 before returning to a surplus of 1.5% in 2027. InnovestX sees this as positive for the Thai stock market, particularly in spurring foreign capital to flow back into big-cap stocks, commercial banks such as Bangkok Bank, KTB, and Kasikornbank, and in lowering the financial costs of listed companies, especially the finance group such as Muangthai Capital, Srisawad, and TIDLOR, as well as attracting long-term investment into future industries, including industrial estates such as Amata and WHA, power plants such as Gulf, GPSC, BGRIM, and Gunkul, and electronics components such as Hana and KCE, for a total of 14 top picks. However, it views that although the Fitch news is positive, it may support the market only in the short term, given lingering external negatives including geopolitical tensions in the Middle East and risks in the Strait of Hormuz, as well as volatility from global trade policy. It therefore recommends a Buy on Dip strategy, waiting to accumulate rather than chasing prices.

The Ministry of Commerce reported Thailand's trade figures for August 2026, with exports expanding 24.3% year-on-year. Although this was below the market expectation of 24.8% year-on-year, it accelerated from 21.6% year-on-year in July 2026. Meanwhile, imports expanded 25.1% year-on-year, below market expectations and below July 2026's 30.0% year-on-year and 36.7% year-on-year respectively. Among export goods that grew well in the agricultural product group were fresh, chilled, frozen and dried fruit, up 24.0%; rubber, up 23.2%; fresh, chilled and frozen shrimp, up 18.8%; and processed chicken, up 10.5%. In the agro-industrial product group, pet food grew 17.5% and canned and processed seafood grew 4.8%. In the industrial product group, video and audio equipment and parts grew 1,155.7%; telephones, equipment and parts grew 151.2%; electrical transformers and parts grew 55.6%; computers, equipment and parts grew 42.1%; electrical appliances and parts grew 40.9%; integrated circuit boards grew 19.2%; and gems and jewelry, excluding gold, grew 3.2%, returning to growth after contracting the previous month. The research team at Phillip Securities sees this as positive sentiment for export stocks in the categories that grew well, as well as stocks related to those export goods, and views it as a boost for industrial estate and utility stocks. It selected 17 standout stocks: in the agricultural product group, CPF, NER, STA and TEGH; in the agro-industrial product group, AAI, ITC and TU; in the industrial product group, CCET, DELTA, HANA, HTECH and KCE; and in the industrial estate and utility group, AMATA, BGRIM, GPSC, ROJNA and WHA.

Pie Securities stated that crude oil prices falling below the three-digit level for both Brent and WTI is a factor easing pressure on global bond yields and supporting Anti Oil and Non Bank stocks, after investors began to expect that the situation between the United States and Iran will move toward greater easing. Last night, Brent crude closed down 1.2% after reports that Saudi Arabia will reopen its oil pipeline. Meanwhile, the Dow Jones Industrial Average closed down 185 points, or 0.4%, on concerns that high oil prices could prompt the Fed to raise interest rates, and the latest CME Fed reading gives about 54% weight to the Fed raising rates at its October meeting. This morning, the KOSPI rose 1.6%, supporting Thai SEMI stocks such as DELTA, HANA, and KCE. Pie Securities estimates today's SET range at 1590 to 1620 points and recommends buying BA with a target price of 22.4 baht, citing the rise in passengers passing through Samui Airport in July and August both year on year and quarter on quarter. It also recommends buying TIDLOR with a target price of 24 baht, citing second-half 2026 profit trends expected to grow as much as 25% year on year.

Phillip Securities (Thailand) has issued an "outperform" rating on the electronics sector, selecting DELTA as its Top Pick for the third quarter of 2026, citing its share price lagging the sector and its strongest exposure to the AI theme. KCE and HANA stand to benefit from higher PCB selling prices and their expansion into High Density PCBA and Power Management. First-half sector profit came in at 16 billion baht, up 46.2% year on year, with growth spread across nearly every company, and the bulk of the profit came from DELTA, which benefited from greater recognition of revenue tied to AI and data centers than a year earlier. Other companies showed a picture of revenue recovering more strongly in the second quarter of 2026. For the third-quarter 2026 outlook, DELTA's profit is expected to rise quarter on quarter on higher AI product shipments, helped by a low base in the second quarter of 2026. In the U.S. stock market, investors are watching the CPU stock theme after GPT-6 Astra shifted fully into Agentic AI competition, forcing the CPU-to-GPU ratio up to 1:1, which supports the appeal of INTC and AMD. Cybersecurity names such as CRWD and PANW are also looking more attractive amid the push to enforce rules governing AI usage.

Electronics sector stocks rose after U.S. President Donald Trump announced plans to establish an AI Force and appoint a new AI Czar to oversee and support U.S. AI development, reaffirming a pro-growth approach under which the government will not issue rules that obstruct industry growth and will use existing criminal and civil laws to handle cases of AI misuse. Trump views AI as the Next Industrial Revolution and estimates it could eventually reach as much as 25% of the U.S. economy. As of 10:07 a.m., HANA gained 4.19%, up 2.00 baht to 49.75 baht, with trading value of 391.47 million baht. DELTA gained 2.07%, up 5.00 baht to 246.00 baht, with trading value of 1.1237 billion baht. CCET gained 1.69%, up 0.15 baht to 9.00 baht, with trading value of 66.44 million baht. KCE gained 1.15%, up 0.75 baht to 65.75 baht, with trading value of 140.37 million baht. And SMT gained 0.88%, up 0.05 baht to 5.75 baht, with trading value of 10.60 million baht. Krungsri Securities said it holds a positive view on the AI Investment Cycle because it reflects a U.S. policy direction still focused on accelerating AI innovation and infrastructure investment rather than increasing regulatory burden, consistent with earlier policies that accelerated AI adoption, cybersecurity, and high-security computing infrastructure. The positive sentiment extends to the global AI supply chain and connects to Thai stocks in the DELTA, HANA, KCE, and CCET theme, as well as GULF/GPSC and the data center infrastructure group. For DELTA, the recommendation is Buy with a 2027 target price of 320 baht, after it passed the hedging period for bondholder status, combined with an AI CAPEX picture driving demand for AI-related products, supporting a rapid recovery in normal third-quarter 2026 profit, up 33% year on year and up 54% quarter on quarter, and set to reach a quarterly peak in the fourth quarter of 2026 forecast. Profit for 2027-2028 is expected to accelerate by 51.4% and 37.7%, with upside potential, while the stock has corrected about 35% from its recent peak. For HANA, the recommendation is Buy with a 2027 target price of 64.6 baht, after a positive surprise of no cash-strapped status last week, combined with support from an accelerating AI CAPEX cycle and China's economic stimulus focused on supporting smart devices, offering upside potential. Profit is expected to grow 23.7% in 2026 and 44% in 2027, while the stock trades at a 2027 forecast PER of 29.5 times and a low PEG of about 0.67 times.

Bualuang Securities says a new angle for KCE shares is the possibility that the selling price increase cycle could extend into 2027, even though the market has already priced in the July increase and another in the fourth quarter of 2026. The key driver is not direct demand for AI circuit boards, but the cost of standard E-glass, the upstream raw material for CCL, which continues to rise after producers gradually shifted capacity to higher-grade materials for AI that offer better returns. Morgan Stanley's price index for standard E-glass fiber rose from 1.0 times in September 2025 to 3.7 times in August 2026 and 4.1 times in September 2026, while KCE's fiberglass purchase price rose from 0.49 US dollars per meter in the second quarter of 2025 to 0.74 US dollars per meter in the second quarter of 2026, an increase of 51% year on year, which is still much smaller than the rise in upstream raw material prices, leaving a risk that cost pressure will feed through further. The research team has not yet included a third price increase in 2027 in its base-case estimates, because the general-grade CCL market is not yet entirely in shortage. It keeps its assumptions for the July and fourth-quarter 2026 price increases, maintains its TRADING BUY rating with a 70 baht target price, and views any additional price increase in 2027 as upside rather than part of the base case. Core profit is expected at 1.44 billion baht in 2026, up 78% year on year, 2.07 billion baht in 2027, up 43.9%, and 2.30 billion baht in 2028, up 11.1%.

Pi Securities estimates the SET index today will move in a range of 1570 to 1595, viewing Non Bank stocks as attractive for accumulation again on expectations of lower yields ahead. It names stocks in this group including MTC, SAWAD and TIDLOR. Meanwhile, US stock markets closed higher, with the DJIA up 0.61% and the S&P 500 up 1.14%, after the Fed raised interest rates by 25 basis points and signalled it may hike once more this year. Brent crude fell to around 104 to 105 dollars per barrel after Middle East concerns eased somewhat and Saudi Arabia said it would resume oil exports, helping push the US 10-year yield and 30-year yield lower. On US economic data released overnight, initial jobless claims came in at about 196,000, below market expectations. For short-term strategy, it recommends TECH names including DELTA and KCE after the Kospi rose about 2.5% this morning, as well as the tourism group including AOT, MINT, CENTEL, AWC, CPALL, CPN and HMPRO, and the hospital group including BDMS, BCH and PR9.

InnovestX Securities Company Limited expects the Thai stock market to remain volatile and has unveiled four standout stock themes to navigate the SET Index falling below 1,600 points. It estimates support at 1,580 and 1,575 points, with resistance at 1,605 and 1,610 points, and recommends a Selective Buy strategy focused on accumulating shares as prices decline. The first theme covers defensive stocks and high-dividend stocks expected to deliver consistent dividend yields above 5% per year, namely BBL, KTB, HMPRO, AP, SCCC and PTT. The second theme covers stocks benefiting from global economic factors and high bond yields. In the energy group it picks PTTEP, BCP, TOP and SPRC, while in shipping it selects PSL and TTA. High bond yields are a positive factor for banks, namely KTB, BBL and KBANK, as well as life insurers BLA and TLI, after the yield on 10-year US Treasury bonds rose to 5% for the first time in nearly three years. The third theme covers stocks benefiting from government policy, namely GULF, GUNKUL, AMATA and WHA, on progress with the draft PDP2026 plan and policies supporting rooftop solar, while STECON, CK and SCCC fall in the construction and construction materials group. As for economic stimulus measures, CPALL, CPAXT and BJC are seen benefiting from the extension of the Thai Chai Thai Plus program, while CPALL, CRC, ERW, CENTEL and AOT are supported by the Thai Tiew Thai Plus program. DELTA, HANA and KCE fall under the theme of promoting investment in data centers and artificial intelligence. The final theme covers laggard stocks, namely AP, PR9, SAWAD, HMPRO, BDMS, TU, BCH, MTC and TIDLOR, whose second-half 2026 earnings are expected to grow both year on year and compared with the first half of the year.