KCE, TH0122010R10

KCE stock faces margin test after strong third-quarter growth

Published on 11/11/2026 at 01:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KCE stock faces scrutiny over the durability of its margin recovery. Maybank sees near-term targets as achievable but flags raw-material risks.

KCE faces a margin test

Maybank considers KCE's fourth-quarter sales and margin targets achievable but remains cautious about longer-term profitability.
Management expects higher selling prices, greater production volumes and capacity expansion to support growth into fiscal 2027.
Raw-material costs and the fiberglass supply remain key risks for the outlook.

KCE, TH0122010R10, Illustration mit AI erstellt.

KCE Electronics is targeting a stronger fourth quarter and further growth in fiscal 2027, but Maybank Securities sees the margin outlook as the central issue for investors. In its November 9 report after KCE's third-quarter analyst meeting, Kaohoon International said the broker had placed the stock under review, with its latest rating at Hold and a target price of THB 53.

KCE stock traded at 1.54 euros on Lang & Schwarz at 22:59 Berlin time on Tuesday, November 10, 2026.

Sales growth meets margin caution

KCE expects fourth-quarter sales to increase 24 to 27 percent, supported by average selling-price increases of 13 to 15 percent and volume growth of about 10 percent. Management is targeting a gross profit margin of 27 to 30 percent, compared with about 22 percent in the third quarter.

For fiscal 2027, the company expects sales growth of 35 to 40 percent and a gross profit margin of 27 to 30 percent. Maybank considers the sales objective realistic, but says the margin outlook depends on stable input costs and could prove aggressive if artificial-intelligence demand pushes raw-material prices higher.

Capacity expansion adds upside

KCE is expanding production capacity to 7 million square feet from 6.2 million in the third quarter, with most additions aimed at high-density interconnect products. The order backlog stood at 7.6 million square feet, while management expects the fiberglass shortage to ease in the second half of 2026.

The company is also seeking approval for a new factory, with mass production targeted for early 2028 if the plan proceeds. Maybank said improved fiberglass availability could reduce the advantage provided by KCE's laminate subsidiary, Thai Laminate Manufacturer, leaving execution and cost control as important variables.

Thai PCB specialist in a global market

KCE Electronics manufactures and distributes printed circuit boards from Thailand, using epoxy glass copper lead laminate in its core products. The company was established in 1982 and serves local and overseas markets through PCB production and related laminate operations. In the global industry, larger manufacturers such as Zhen Ding Technology, Unimicron and TTM Technologies operate at greater scale, while KCE remains a more specialized Thailand-based supplier, according to MPBxChange research.