Yuanta says electronics stocks have bottomed out, picks HANA as Top Pick

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Summary · why it matters

Yuanta Securities assesses that electronics stocks have already passed their bottom and are entering a period of accelerating profit, believing the earnings cycle still has room to run for another 12 months because AI demand is spreading from GPU and Memory into Networking, Optical, Power, Cooling, PCB and EMS. Q3/2026 will be a key proving point, with mid-cap stocks' profits likely to accelerate on recovering utilization and margins, making second-tier names in the sector stand out. The research team maintains an Overweight on the sector and is shifting focus from AI Leaders to stocks whose earnings are still in the early stage of recovery, selecting HANA as Top Pick with a BUY rating and a target price of 60.25 baht, followed by SMT at BUY with a target price of 8.40 baht, and CCET at BUY with a target price of 11.30 baht, on earnings upside and valuation catch-up, while DELTA and KCE are better suited to trading. As for signals to start watching, there are three: a slowdown in hyperscaler capex, orders and utilization ceasing to accelerate, and 2027–2028 earnings estimates beginning to be revised down. If these signals occur together, that would be the point at which the share price cycle may end ahead of earnings.

Impact on assets 5

Semiconductors▲
Robotics & Physical AI▲
Electrification & Mobility▲