Earnings Report /
Thailand

KCE Electronics PCL: Core profit a miss

  • Earnings missed estimates

  • KCE posted a 3Q22 bottom-line of Bt655m

  • Revenue totaled Bt4.6bn for 3Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Follow
Bualuang Securities
9 November 2022

KCE’s stock price typically reacts to takeaways from meetings with analysts. Its 3Q22 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 outlook of order bookings and the path of GM recovery. For us, we are still cautious on demand outlook in 2023, due to the global recession. We recommend a wait-and-see stance for now.

Earnings missed estimates

KCE posted a 3Q22 bottom-line of Bt655m, up 9% YoY and 15% QoQ. Stripping out a FX gain (Bt41m) and a loss from unused assets sold included in asset impairment (Bt22m), core earnings would be Bt636m, up 6% YoY and 6% QoQ. The core number was 8% below our estimate and 11% short of the consensus estimate, due to lower sales than anticipated.