Earnings Report /
Thailand

KCE Electronics PCL: A core profit miss

  • Earnings missed estimates

  • KCE posted a 1Q22 bottom-line of Bt590m

  • Revenue totaled Bt4.5bn for 1Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
11 May 2022

KCE’s stock price typically reacts to takeaways from meetings with analysts. Its 1Q22 post-result analyst meeting will be held this afternoon. Whatever management tells the audience could point to a trading play. We think the firm will tell analysts about the progress of solutions to production problems We may therefore see more juice in the stock!

Earnings missed estimates

KCE posted a 1Q22 bottom-line of Bt590m, up by 17% YoY but down 16% QoQ. Stripping out a FX gain (Bt62m) and a loss from fair value of financial investment (Bt30m), core earnings would be Bt558m, up by 30% YoY but down by 14% QoQ. The core number was 13% below our estimate and that of the consensus, due to a slimmer GM than we had anticipated.