Earnings Report /
Thailand

KCE Electronics PCL: 2Q20 core profit much better than the street estimate

  • 2Q20 core profit was in line with our estimate

  • KCE posted a 2Q20 bottom-line of Bt71m

  • The bottom-line was in line with our expectation

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Follow
Bualuang Securities
13 August 2020

KCE’s stock price typically reacts to takeaways from analyst meetings. Its 2Q20 post-result analyst meeting will be held this afternoon (Aug 13). Predicting what management will tell the audience can point to a trading play. We think KCE will tell analysts about nascent recovery signs for 2H20, so have a BUY call ahead of the meeting.

2Q20 core profit was in line with our estimate

KCE posted a 2Q20 bottom-line of Bt71m, down by 55% YoY and 83% QoQ. Excluding extra items—an FX gain and impairment provisions of Bt56.5m for unproductive machinery—core profit would be Bt128m, down by 40% YoY and 63% QoQ. The bottom-line was in line with our expectation (but was much better than the street estimate of Bt8m). KCE announced an interim DPS of Bt0.40 for 1H20, implying a 1.4% simple yield (XD Aug 24, payment Sep 9).