Earnings Report /
Thailand

KCE Electronics PCL: Core profit a miss

  • Earnings missed estimates

  • KCE posted a 2Q22 bottom-line of Bt572m

  • Management announced a DPS of Bt1 for 1H22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
10 August 2022

KCE’s stock price typically reacts to takeaways from meetings with analysts. Its 2Q22 post-result analysts meeting will be held this afternoon. Whatever management tells the audience could point to a trading play. We expect the firm to tell analysts about the progress of solutions to production and logistic problems. Our recommendation has shifted from TRADING BUY to HOLD.

Earnings missed estimates

KCE posted a 2Q22 bottom-line of Bt572m, down by 7% YoY and 3% QoQ. Stripping out a FX gain (Bt10m) and a loss from fair value of financial investment (Bt39m), core earnings would be Bt602m, up by 8% YoY and 8% QoQ. The core number was 20% below our estimate and 13% short of the consensus estimate, due to a slimmer GM and lower sales than anticipated. Management announced a DPS of Bt1 for 1H22, implying a 1.6% simple yield (XD Aug 23, payment Sep 9).