Interconnect & Passive Components

Inno Laser disclosed on October 10 during an investor relations event that its ultrafast laser drilling equipment secured its first order in the IC substrate sector at the end of 2025, and completed acceptance in the first half of this year. The company said the equipment offers advantages such as customized lasers, independently designed optical systems, and fast iteration response. The equipment can meet precision drilling needs for substrate-like PCBs and various specifications of PCB, and customer validation is currently being accelerated.

China Jushi announced that it expects net profit attributable to shareholders of the listed company for the first three quarters of 2026 to be between 5.136 billion yuan and 5.393 billion yuan, up 100% to 110% year on year. The change is mainly due to increased demand in major downstream application areas for fiberglass and a simultaneous rise in product volume and prices. On the same day, several other companies released earnings forecasts. Kinwong Electronic expects third-quarter net profit of 912 million yuan to 1.089 billion yuan, up 205.46% to 264.74% year on year, benefiting from faster mass production and shipments of high-performance PCBs in high-speed communications and AI data infrastructure. Delton Technology expects net profit of 1.45 billion yuan to 1.5 billion yuan for the first three quarters, up 100.33% to 107.23%, focusing on the computing power PCB market. Hongfuhan expects net profit of 170 million yuan to 200 million yuan for the first three quarters, up 108.19% to 144.93%, with mass production and delivery of liquid cooling plate cabinet module business becoming the core incremental driver. Bohai Leasing's controlling subsidiary Avolon, through its wholly owned subsidiary AALL, signed an agreement with Boeing to purchase 140 B737 MAX series aircraft. Based on Boeing's published list prices, the total value does not exceed 26.953 billion US dollars, while the actual purchase price carries a certain discount. The deal still needs shareholder approval and is expected to be fully delivered by the end of 2036. MicuRx Pharmaceuticals plans to sign an exclusive license agreement for the MRX-23 project and a platform technology cooperation agreement with ClearideBio of Switzerland. The upfront payment is 1 million US dollars, the nominal cap for MRX-23 development, registration and sales milestone payments totals 223 million US dollars, and the total payment cap when all platform cooperation project options are exercised and all milestones are achieved is 750 million US dollars. China Northern Rare Earth and Baogang Group both announced that the rare earth concentrate transaction price for the fourth quarter of 2026 will be adjusted to 38,769 yuan per ton excluding tax, up 0.53% quarter on quarter. Wuliangye has cumulatively repurchased 16.1278 million shares, with a total amount paid of about 1.201 billion yuan. ST Nachuan has been placed on file for investigation by the China Securities Regulatory Commission for suspected illegal information disclosure in its 2023 annual report. Yu Faxiang, the actual controller of Xiangyuan Cultural Tourism and Jiaojian Co., Ltd., has also been placed on file for investigation by the CSRC for suspected illegal information disclosure.

Sinoma Science & Technology disclosed on the evening of October 8 the results of its 2025 share issuance to specific investors. The company issued a total of 87.1819 million shares at 51.40 yuan per share to 15 investors, raising 4.481 billion yuan, of which more than 3.1 billion yuan will be used for an electronic fabric expansion project. Institutions dominated this private placement. E Fund Management was allotted 19.8833 million shares worth 1.022 billion yuan, making it the largest subscriber. Caitong Fund and Nuode Fund were allotted 485 million yuan and 427 million yuan respectively. UBS AG, Harvest Fund, and China Life Pension also participated. China National Building Material United Investment, a wholly owned subsidiary of the actual controller China National Building Material Group, was allotted 820 million yuan for 15.9562 million shares, with an 18-month lock-up period. Well-known retail investor Ge Weidong was allotted 13.6187 million shares worth about 700 million yuan. His highest bid of 59.15 yuan per share was the highest offer of the day. Retail investors Zhong Ge and Chen Xuegeng were each allotted 1.9455 million shares worth about 100 million yuan. Of the proceeds, 1.662 billion yuan is planned for a project with annual output of 35 million meters of low-dielectric fiberglass cloth, and 1.475 billion yuan is planned for a project with annual output of 24 million meters of ultra-low-loss low-dielectric fiberglass cloth.

Guoli Electronics announced that it expects net profit attributable to owners of the parent company in the third quarter of 2026 to be 27 million to 32.4 million yuan, up 35.11% to 62.13% year-on-year. The change in performance is mainly due to continued volume growth in capacitor products, accelerated volume growth in high-power magnetrons and klystrons in strategic new scenarios, and effective cost and expense control. The company's Q3 net profit is expected to be 27 million to 32 million yuan, compared with 25 million yuan in Q2, implying a quarter-on-quarter increase of 8% to 30%.

Guanghong Technology stated on an interactive platform on October 8 that with the continuous growth in demand for computing power infrastructure, the company's computing power business is expected to become an important driver of future growth. The company has now begun providing manufacturing services for various products to leading domestic and international clients, including computing power boards, cooling components, data center switches, server-specific power supplies, and high-speed connectivity components. The newly introduced liquid-cooled server supernode business has now entered the production stage.

Samsung Electro-Mechanics disclosed in a regulatory filing on October 6 that it signed a supply contract that day with a major global company for multilayer ceramic capacitors, or MLCCs, used in AI servers, with a contract value of about 285.611 billion Korean won, equivalent to roughly 210 million US dollars. Earlier, on September 1, Samsung Electro-Mechanics had disclosed a 1.07 trillion Korean won MLCC supply contract with a well-known global customer, also for AI server applications, with a supply period covering all of 2027. A research report from Northeast Securities noted that demand for high-capacitance MLCCs in AI servers is five to ten times that of traditional servers. As major Japanese and Korean manufacturers shift capacity toward higher-end automotive-grade and AI products, the supply of mid- and low-capacitance MLCCs is experiencing structural shortages, and expectations for industry price increases are strong. Among companies, Sinocera is a core leader in MLCC dielectric powder, with a domestic market share exceeding 80 percent, while Sidike's full range of functional release films for MLCCs covers leading MLCC manufacturers.

Qingding Precision Electronics (Huai'an) Co., Ltd., a wholly owned subsidiary of Pengding Holding, recently acquired the right to use two parcels of state-owned construction land in Huai'an, with a total transaction price of 78.75 million yuan. The company announced on October 8 that the land acquired comprises the plot east of Fujing Road (2026GGK20) and the plot east of Baowu Road (2026GGK21), with a combined area of 210,000 square meters, designated as Class II industrial land. The plot east of Fujing Road covers 63,000 square meters and was acquired for 24.17 million yuan, while the plot east of Baowu Road covers 147,000 square meters and was acquired for 54.58 million yuan. In the first half of 2026, Pengding Holding achieved revenue of 17.217 billion yuan and net profit attributable to the parent company of 1.284 billion yuan.

Nanya New Material Technology announced on the evening of October 8 that the second meeting of the company's fourth board of directors reviewed and approved a proposal to use 740 million yuan of raised funds to increase capital in its wholly owned subsidiary Nanya New Material Technology Jiangsu Company Limited, in order to advance the construction of the fundraising project. Of the 740 million yuan capital increase, 50 million yuan will be included in paid-in capital and 690 million yuan will be included in capital reserves. After the capital increase is completed, Jiangsu Nanya's registered capital will rise from 200 million yuan to 250 million yuan, and the shareholding structure will remain unchanged, with the company still a wholly owned subsidiary. The matter does not need to be submitted to a shareholders' meeting for review, and the sponsor institution Everbright Securities has issued a verification opinion. The funds come from the proceeds of the company's 2025 A-share private placement, which involved the issuance of 3,224,535 shares at 279.11 yuan per share, raising total proceeds of about 900 million yuan and net proceeds of 889 million yuan after deducting issuance expenses. Pan-China Certified Public Accountants issued a capital verification report on September 24, 2026. According to the prospectus, the net proceeds after deducting issuance expenses will be allocated to two major projects: 740 million yuan is planned for the research, development and industrialization of high-end high-frequency high-speed copper-clad laminates based on AI computing power, and 148.7245 million yuan is planned for a supplementary working capital project. Jiangsu Nanya is the implementing entity for the AI computing materials project. Jiangsu Nanya was established on April 19, 2024, with its registered address in Haimen District, Nantong City, Jiangsu Province, and its legal representative is Zhang Liu. It is 100 percent owned by Nanya New Material Technology. As of the end of 2025, its total assets were 81.4876 million yuan and net assets were 81.3726 million yuan. By the end of June 2026, total assets had increased to 218.1253 million yuan and net assets to 207.2758 million yuan. Because it is still in the construction phase, it has not yet generated operating revenue, and it recorded a net loss of 1.6798 million yuan in the first half of 2026. The company said the capital increase is based on the construction needs and funding requirements of the fundraising project, will help ensure the smooth implementation of the project, and will not have a material adverse impact on production and operations.

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.

Jabil reported fourth-quarter revenue up 29% year over year and core earnings per share up 34% to $4.40, and guided fiscal 2027 core EPS to $17.55, another gain of about 34%. The company generated $14.4 billion of AI-related revenue in fiscal 2026 and expects $22.1 billion in fiscal 2027, a 54% increase, with six customers in the segment expected to top $1 billion each in fiscal 2027. Jabil supported $36.0 billion of revenue in fiscal 2026 on just $470 million of net capital spending, lifting core return on invested capital to 59%, nearly triple the fiscal 2020 level, and buybacks absorbed about $1.1 billion of free cash flow during the year. On the risk side, chief supply chain officer Francis McKay said memory is being pulled toward AI and hyperscale buyers, squeezing other markets, and Connected Living is expected to shrink 15% to $2.3 billion, while healthcare fell short in the fourth quarter on equipment delays and a slipped customer program. Jabil is adding more than $8.5 billion of revenue in fiscal 2027, which management called unprecedented, and a second hyperscale customer is expected to pass 10% of total revenue, while net inventory days of 64 remain above the 55 to 60 day target.

The analyst team at Krungsri Securities has raised its recommendation on the electronic components sector to Bullish from Neutral, expecting every company in the group to post stronger earnings in the third quarter of 2026 than in the second quarter, with momentum continuing through the fourth quarter of 2026 and into 2027. The brokerage expects the industry's combined profit to grow 52% in 2027, accelerating from 42% in 2026, driven by demand for both AI-related and non-AI products. It recommends buying all three stocks under coverage: DELTA with a target price of 320 baht and KCE with a target price of 97 baht, naming them top picks on the theme of product price increases, which should deliver the strongest net profit per share growth in 2027. DELTA is expected to post profit growth of 51% in 2027, up from 42% in 2026, while KCE is seen growing from 77% in 2026 to 82% in 2027, and HANA from 24% in 2026 to 45% in 2027. The brokerage also raised its earnings forecasts for KCE by 5% for 2026 and by 28% for 2027 to reflect its positive view that KCE is entering a sustained cycle of product price increases, including one more price increase in October 2026 on top of the two previously expected in July 2026 and January 2027. Among non-AI stocks, it still prefers KCE over HANA because KCE operates further upstream and owns its own laminate factory, giving it better control over raw material costs.

TTM Technologies reported record quarterly net sales of $1.00 billion for its second quarter, up 37.4% year on year and 4.8% above analysts' expectations, with next-quarter revenue guidance also exceeding consensus. Chief Executive Officer Edwin Roks credited robust Data Center and Networking demand, which rose 91% year on year, along with 33% growth in the Medical, Industrial and Instrumentation end market and 14% growth in Aerospace and Defense. The stock has fallen 6% since the results and trades at $123.42. Across the 10 electronic components and manufacturing stocks tracked in the group, revenues beat consensus by 4.7% and next-quarter revenue guidance came in 6.3% above estimates, with share prices up 2.1% on average since reporting. Amphenol led the group with revenue of $8.76 billion, up 55% year on year, while Jabil posted $10.62 billion, up 28.6%, and Plexus reported $1.30 billion, up 28.1%; Rogers was the weakest, with revenue of $216.8 million, up 6.9%, and a significant miss on earnings per share.

ICAPE Group reported first-half 2026 consolidated revenue of €113.3 million, up 12.5% from the restated €100.7 million a year earlier, and raised its full-year 2026 consolidated revenue growth target to at least 18% from the previous 12%. The French printed circuit board distributor said organic growth was 12.3% in the half and 18% excluding currency effects, with second-quarter growth of 22.9%, while EBIT came in at €4.7 million and the EBIT margin was 4.1% for the half, including 6% in the second quarter, keeping the company on track for its roughly 6% full-year EBIT margin target. Net income attributable to the group rose to €1.6 million from €1.1 million in the first half of 2025, and recurring net income attributable to the group was €3 million. The order backlog reached a record US$134.9 million as of 25 September 2026, up 44% from US$93.6 million at the end of June 2026 and up 133% from 30 September 2025, while net financial debt stood at €27.6 million at 30 June 2026, down from €28.8 million at 31 December 2025, in compliance with banking covenants. The revised annual target combines organic revenue growth of around 18%, up from a previous range of 6% to 8%, with approximately €5 million in additional revenue from external growth by the end of 2026, down from the €28 million previously targeted after a transaction under way since the start of the year failed to close in July. ICAPE will present its new medium-term operational, strategic and financial targets at a Capital Markets Day on 24 November 2026.

The Office of Industrial Economics (OIE) has revised the structure of the industrial index, resulting in the Manufacturing Production Index (MPI) for August 2026 standing at 103.43, an expansion of 4.44% from the same period last year, with a capacity utilisation rate of 58.28%. Supakit Boonsiri, Director-General of the OIE, disclosed that as a result of the index revision, the OIE has raised its 2026 forecast, with the MPI now expected to grow 2.75-3.75%, up from 0.0-0.5%, and industrial GDP to grow 0.8-1.8%, up from 0.75-1.75%. Positive factors come from continued expansion in global demand for electronic goods driven by AI technology and data centre investment, government measures including the Thai Help Thai Plus scheme and a 2.40 baht per litre reduction in diesel prices, and an average weaker baht of 33.20 baht per dollar, depreciating 1.7% from last year. Key industries contributing positively included communication equipment, which expanded 24.41%, petroleum refining products, which expanded 8.14%, and electronic components and circuit boards, which expanded 14.55%. Industries with a negative impact included primary plastics and synthetic rubber, which contracted 13.37%, computers and peripheral equipment, which contracted 10.91%, and basic iron and steel, which contracted 7.64%. The index revision added new products playing an important role, including notebooks and laptops, optical transceivers, and uninterruptible power supplies for data processing units, and added new sample factory groups in two categories: integrated circuit manufacturing and the manufacturing of other electronic components. The OIE will next test an approach to annual reweighting through continuous index linking. Regarding the impact of flooding on the industrial sector, Supakit said information is still being gathered and assessed.

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.

Murata Manufacturing has begun mass production of the LLD series, which it calls the world's smallest three-terminal low-equivalent series inductance multilayer ceramic capacitors. The new parts measure just 0201-inch size, or 0.6 by 0.3 millimeters, cutting mounting area by approximately 64 percent compared with Murata's previous smallest 0402-inch size of 1.0 by 0.5 millimeters. Murata said it overcame the difficulty of miniaturizing three-terminal capacitors, whose internal and external electrode structures are more complex than conventional two-terminal types, by optimizing the electrode design and advancing its manufacturing processes. Two models are available: the LLD033R60G105ME01 with 1 microfarad capacitance, 4 Vdc rated voltage and an operating temperature range of -55 to +85 degrees Celsius, and the LLD033D80E105ME01 with 1 microfarad capacitance, 2.5 Vdc rated voltage and a range of -55 to +105 degrees Celsius. The company said the smaller footprint frees up printed circuit board space in compact devices such as smartphones and wearables while stabilizing power supply voltage near ICs at high frequencies.

TDK and Taiyo Yuden announced on the 29th that they will form a business alliance for the joint development of cutting-edge electronic components, sending both companies' share prices sharply higher. TDK's stock rose as much as 5.0% from the previous day to 3,066 yen, while Taiyo Yuden climbed as much as 9.1% to 9,955 yen. With demand growing for multilayer ceramic capacitors and other components for data centers and physical AI, the two companies will pool their technology and management resources to build a stable supply system, and will also explore the possibility of a future capital alliance. As the pairing brings together two Kanto-based companies, some see it as a counterweight to Murata Manufacturing of Kansai, and IwaiCosmo Securities senior analyst Kazuyoshi Saito noted, "It could become a force capable of rivaling Murata Manufacturing, and the east-versus-west rivalry will become clearer." In the MLCC field, Taiyo Yuden is said to be strong in small, high-performance types for package substrates used in data centers, while TDK is strong in components for power semiconductors.

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.

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.