STOCKS NEWS THAILAND-KCE Electronics near 9-year high on earnings hope

Tue Jan 8, 2013 11:02pm EST

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Shares in KCE Electronics Pcl rose to their highest level since March 2004 amid expectations the electronic component manufacturer would report strong earnings for the fourth quarter of 2012 and a record high earnings for 2013.

KCE shares were up 1.8 percent at 11.2 baht, having hit 11.3 baht, versus a 0.6 percent gain of the electronic components subindex. About 15.4 million shares changed hands, 2.6 times the average full-day volume in the last 30 days.

Maybank Kim Eng Securities forecast the company to report a rise in normalised profit for the fourth quarter to 100-120 million baht ($3.29-$3.94 million). It expects KCE's 2013 net profit to reach a record high of 604 million baht.

"We have a positive view on KCE 2013 forecast earnings after the 97 percent acquisition of Chemtronic Technology in the third quarter of 2012 that strengthens KCE business, reduces long-term costs and will drive the gross margin upward," it said.

The broker said KCE was its electronic top pick, with a fair value target of 12.9 baht. 1051 (0351 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Anand Basu)

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