Hana Microelectronics Public Company Limited

The Ministry of Commerce reported that Thailand's export value in July 2026 stood at 34.8 billion US dollars, expanding 21.6% year-on-year, higher than the market's expectation of 17.8%. Meanwhile, imports for the same month were 38.4 billion US dollars, up 37.8%, lower than expected, resulting in a trade deficit of 3.61 billion US dollars, less than forecast. Products with good growth include rubber, processed chicken, pet food, processed canned seafood, and electronic goods. Stocks in these sectors, such as STA, GFPT, ITC, TU, DELTA, HANA, and KCE, benefit accordingly. In the first seven months of the year, exports totaled 232 billion US dollars, up 18.2%, while imports were 267 billion US dollars, up 37.8%, with a trade deficit of 35.4 billion US dollars. The Ministry of Commerce sees support from global demand for technology products and digital infrastructure, as well as accelerated imports to prepare for US trade policies. Meanwhile, brokers like Krungsri Securities and Phillip Securities view positively on export-related stocks and recommend top picks such as DELTA, HANA, KCE, AMATA, GULF, GPSC, KBANK, and KTB.

Krungsri Securities Public Company Limited stated that the total net profit of the Electronics group in the second quarter of 2026 was 6.67 billion baht, up 38% year-on-year but down 29% quarter-on-quarter. The year-on-year increase was driven by improved profits across all companies in the group, especially HANA, whose profit surged 840%, and KCE, which rose 52%. Meanwhile, DELTA increased only 31% and declined 33% quarter-on-quarter due to raw material shortages. DELTA's profit is expected to recover in the third quarter of 2026, but not as strongly as the first quarter's 9 billion baht. In contrast, HANA and KCE are expected to see stepwise profit growth from a new upward earnings cycle. The group's profits are forecast to grow 45% and 41% in 2026 and 2027, respectively, with HANA growing 44% and KCE 50% in 2027, while DELTA's growth slows to 29% from 42% as hyperscalers like Amazon and Microsoft delay data center investments. The brokerage maintains a Reduce rating on DELTA with a target price of 244 baht, and recommends buying HANA and KCE, with KCE as the top pick due to its upstream position and better raw material cost control.

Krungsri Securities (KSS) expects the SET to move sideways/up today, with resistance at 1,614 and 1,630 points and support at 1,592 and 1,587 points. This is supported by accelerating AI CAPEX after NVIDIA reported better-than-expected earnings, and US PCE inflation rose slightly. Meanwhile, the Thailand Focus event highlights Thailand's strengths in attracting foreign investment, recommending three investment themes: stocks benefiting from AI CAPEX such as HANA, DELTA, and GULF, as well as power stocks and re-rating stocks.

Brokers expect the Thai stock market to have a chance to rise to the resistance level of 1,620 points today, supported by tech stocks, especially DELTA and HANA, after NVIDIA reported better-than-expected Q2 FY70 results. Profit expanded 126% year-on-year, revenue increased 106%, and gross margin stood at 75%, 6% higher than Bloomberg's forecast. This drove NVIDIA's stock price up 4.6% in after-hours trading, and this morning the KOSPI index rose 2.5%. On the domestic front, the Monetary Policy Committee kept interest rates unchanged but assessed that the Thai economy is supported by AI, although growth remains low and uneven. They believe that looser interest rates will help revive the economy. Analysts from Pai Securities stated that SET today has a trading range of 1,590 – 1,620 points, recommending investment in tech, tourism, retail, banking, power plant, and industrial estate stocks.

Hana Microelectronics (HANA) reported its Q2/69 results, benefiting from the semiconductor cycle and AI trend recovery, and is proceeding with restructuring its Jiaxing plant toward power modules. Total revenue from its five main plants: Ayutthaya 2,850 million baht, up 22% QoQ and 14% YoY; Lamphun 2,315 million baht, up 7% QoQ but down 9% YoY; Jiaxing 272 million baht, down 33% QoQ but up 10% YoY; Ohio 458 million baht, up 25% QoQ and 51% YoY; and Cambodia 138 million baht, down 5% QoQ but up 53% YoY. The company holds cash reserves of 11,200 million baht to support a major capacity expansion in 2027. It faces higher raw material and memory chip costs, as well as uncertainty over Section 301 tariffs, but expects Thailand's new tariff rate to be around 12-15%, which is manageable.

Third-quarter net profit of Thai listed companies is expected to expand from a year earlier but slow from the previous quarter, with the main support coming from higher energy prices, petrochemical spreads, mobile and internet service revenue, electronics demand, as well as new power generation capacity and profit from GULF's overseas power plant business. Meanwhile, higher jet fuel costs are pressuring the airline group, and narrowing interest margins are pressuring the banking group. Groups whose core profit is expected to grow from a year earlier are led by energy, petrochemicals and construction materials, supported by average Brent crude prices in July to August rising 28% from a year earlier and Singapore GRM refining margins rising 434% from a year earlier. The electronics group is supported by strong AI and data center demand, with DELTA Taiwan's power electronics sales in July growing 59% from a year earlier and 17% from the previous quarter. KCE expects PCB revenue may rise 17 to 19% from the previous quarter thanks to product price increases effective from July 1, which should lift average selling prices by about 9 to 10%. HANA is seeing IC capacity utilization recover, and AI-related products are expected to begin commercial production from the third quarter. The communications group is supported by mobile and internet service revenue. The hospital group expects revenue to return to growth both from a year earlier and from the previous month in July, supported by Thai and Middle Eastern patients, with flights from the Persian Gulf estimated to have recovered to pre-war levels since early July. The retail group saw same-store sales rise 1% from a year earlier in July, led by IT product retailers, with COM7 expecting total sales to grow 15% from a year earlier and ADVICE growing 17% from a year earlier. CPALL expects same-store sales to expand 0.5% from a year earlier on average in July to August, while Makro was flat and Lotus contracted 5% from a year earlier. The tourism group saw revenue per available room in July at AWC rise 26% from a year earlier, CENTEL rise 8% from a year earlier, ERW rise about 5% from a year earlier, and MINT rise 4% from a year earlier. Groups whose core profit is expected to decline from a year earlier are led by transport, pressured by higher jet fuel costs, banking, pressured by persistently narrowing interest margins, and meat, pressured by lower meat prices, with average pork prices in July falling 14% from a year earlier and chicken prices falling 1% from a year earlier. Meanwhile, the pet food export group expects sales to still grow 10% from a year earlier and 7% from the previous quarter in July. Analysts recommend being selective in stocks whose third-quarter earnings trends are still expected to grow strongly, have not seen sharp earnings downgrades over the past three months, and have clear positive factors supporting recovery. These include KCE in electronics, CBG in beverages, which expects domestic energy drink sales to grow 10% from a year earlier and Myanmar sales to grow 70% from a year earlier in the third quarter of 2026, ITC in pet food exports, BH and BDMS in hospitals, AOT and CENTEL in tourism and airports, and GPSC in power plants, which recognizes full-quarter profit from GHECO-One and Glow IPP power plants.

Brokers are recommending buying shares of Hana Microelectronics, or HANA, and raising their target prices after second-quarter 2026 results came in stronger than expected and signalled that the company has passed its two-year low point. They have raised profit forecasts for 2026 and 2027 to reflect second-half momentum from gradually recognising high-margin AI revenue, including solid-state cooling systems, high-density PCBA boards for AI oscilloscopes, and co-development of co-packaged optics supporting 1.6T GPUs, which began production in the third quarter of 2026 and will ramp to full capacity in the fourth quarter. Krungsri Securities maintained a buy rating and raised its target price to 64.6 baht from 51.7 baht, expecting full-year 2026 profit of 995 million baht, up 23.7 percent, accelerating to 44 percent growth in 2027. UOB Kay Hian raised its target from 38 baht to 54 baht and lifted profit forecasts by about 20 percent after the company emerged from a weak two-year period. InnovestX raised its 2026 normalised profit forecast by 25 percent and its 2027 forecast by 15 percent, expecting normalised profit to grow 64 percent in 2026 and 34 percent in 2027, while raising its mid-2027 target price to 58 baht from 46 baht. However, HANA shares have been placed under cash balance rules from 24 August to 11 September 2026, causing the stock to pull back on the first day of the measure. It closed the morning session at 45.25 baht, down 2.50 baht or 5.24 percent, after rising 33 percent between 13 and 21 August.

A survey of second-quarter 2026 earnings among companies listed on the Stock Exchange of Thailand found that 71 firms recorded net profit growth of more than 100% compared with the same period last year. TMT Steel Public Company Limited, or TMT, led the pack with net profit of 299.87 million baht, up 910.23% from 29.68 million baht. Hana Microelectronics Public Company Limited, or HANA, followed with net profit of 326.31 million baht, up 838.35%, and Susco Public Company Limited, or SUSCO, posted net profit of 120.59 million baht, up 797.01%. Among large-cap stocks with profit growth above 100%, True Corporation reported net profit of 6.55 billion baht, up 222.68%; Berli Jucker Public Company Limited posted net profit of 2.88 billion baht, up 191.07%; PTT reported net profit of 52.52 billion baht, up 143.93%; SCG Packaging posted net profit of 2.30 billion baht, up 128.15%; and PTT Exploration and Production reported net profit of 27.20 billion baht, up 101.23%.

Six listed electronics component makers reported higher net profit in the second quarter of 2026 compared with the same period a year earlier, with HANA and TEAM growing more than 100 percent, while KCE, CCET, DELTA and METCO rose 13 to 51 percent. The growth was supported by a recovery in overseas orders, higher electronics and semiconductor sales, and a shift in product mix toward higher-margin goods. Global investment trends in AI and data centers remain supportive factors for demand for power supply systems, cooling systems, printed circuit boards and related products, especially for companies in the supply chains of global cloud service providers and semiconductor manufacturers. HANA reported net profit of 326.31 million baht, up 838.35 percent from 34.78 million baht. TEAM posted profit of 79.99 million baht, up 173.11 percent from 29.29 million baht. KCE reported profit of 275.92 million baht, up 51.49 percent from 182.14 million baht. CCET posted profit of 711.32 million baht, up 48.13 percent from 480.20 million baht. DELTA reported profit of 6.07 billion baht, up 31.23 percent from 4.63 billion baht. METCO posted profit of 234.57 million baht, up 13.38 percent from 206.90 million baht. Analysts from Krungsri Securities, KGI Securities, Kasikorn Securities and Maybank Securities all assessed the outlook for the second half of 2026 as positive, especially for DELTA, HANA and CCET, which are beginning to benefit from new products and new production capacity.

Krungsri Securities assesses that investment momentum in AI hubs and data centers will help unlock the Thai stock market from de-rating and push the index into a range of 1,680 to 1,750 points within the third to fourth quarter. Korrapat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities, said at the Final Call 2026 seminar that the global economic cycle is transitioning, with Asia becoming the next growth cycle driven by the AI technology wave amid geopolitical tensions and global trade friction, causing significant investment inflows into Thailand and Asia. This round of momentum comes from the fixed-asset investment cycle of hyperscalers to build scarce computing capacity, with data centers attracting the entire technology supply chain into the region. The first business groups to benefit are finance and banking, followed by electronic components and cooling systems such as KCE and HANA, property development and construction contractors, and utilities and energy. Korrapat said this investment cycle will push the Thai stock market's P/E ratio to expand by an average of up to five times, as the market currently reflects too little of the positive factors.

Krungsri Securities Public Company Limited, or KSS, said the US Treasury is preparing to increase the size of its long-dated government bond buybacks to at least 4 billion US dollars per operation, focusing on bonds with maturities of 10 to 20 years and 20 to 30 years, starting from 9 September 2026 onwards. The measure caused the yield on 30-year US government bonds to fall by 0.07%, while the 10-year yield fell by 0.04%, alongside a weaker US dollar and a recovery in global risk assets. KSS views this bond buyback as a measure to support liquidity and manage the average maturity of debt securities rather than as quantitative easing, because the US Treasury is using short-term Treasury bill issuance as the main funding source for buying back long-term bonds. These factors pushed the dollar index down to its lowest level in one month, while the baht strengthened to trade around 32.80 to 32.90 baht per US dollar, reflecting conditions that favour foreign capital inflows into Asian and Thai equity markets. In the medium to long term, the Thai economy should also benefit from foreign direct investment flowing into the ASEAN region, supporting the investment cycle in artificial intelligence infrastructure and data centres. This should be positive for commercial banking stocks as the main funding source, without concern over non-performing loan risk among SME businesses, because this credit cycle is being driven by large corporates and the government continues to provide assistance measures for SMEs. Stocks expected to benefit directly from easing bond yields and the technology trend include Delta Electronics Thailand Public Company Limited, or DELTA; KCE Electronics Public Company Limited, or KCE; Hana Microelectronics Public Company Limited, or HANA; Gulf Development Public Company Limited, or GULF; Global Power Synergy Public Company Limited, or GPSC; WHA Utilities and Power Public Company Limited, or WHAUP; Muangthai Capital Public Company Limited, or MTC; and Krungthai Card Public Company Limited, or KTC.

Analysts at InnovestX Securities expect combined net profit of Thai listed companies in the third quarter of 2026 to continue growing from the same period last year, despite pressure from geopolitical risks and a prolonged El Niño. Combined net profit in the second quarter of 2026 expanded 14.3 percent from a year earlier and 12.0 percent from the previous quarter, marking a sixth consecutive quarter of growth and a fifth consecutive quarter of double-digit growth, supported by higher margins and selling price increases amid expanding demand, especially in energy, petrochemicals, and construction materials, which benefited from the Middle East conflict. More than 50 percent of the 107 listed companies with market forecasts reported net profit above expectations. The broker recommends avoiding sectors where earnings remain weak and accumulating five The Star stocks: HANA, ERW, PR9, BCH, and TIDLOR, which have potential for standout profit growth both from a year earlier and from the previous quarter, driven by company-specific positive factors and government stimulus measures.

Bualuang Securities said combined core profit of four electronics stocks in the second quarter of 2026 was 6.8 billion baht, up 16% from a year earlier but down 32% from the previous quarter, with the decline driven mainly by Delta Electronics Thailand. Excluding Delta, combined core profit of the other three companies was 1.19 billion baht, up 58% from both a year earlier and the previous quarter. Cal-Comp Electronics Thailand posted the strongest core profit growth from a year earlier at 182%, while Hana Microelectronics showed the strongest recovery from the previous quarter at 169%. On gross margin, KCE Electronics was the only stock that expanded from both a year earlier and the previous quarter. Delta's gross margin rose 180 basis points from a year earlier but fell sharply by 490 basis points from the previous quarter. A key issue to monitor is working capital after all four companies accelerated inventory accumulation, up 12% from the previous quarter for KCE, 24% for Hana, 25% for Delta and 40% for Cal-Comp, due to tight component supply and higher memory and copper raw material prices. However, cash flow at Delta, KCE and Hana recovered, with Delta posting operating cash flow of 10.8 billion baht, KCE 507 million baht and Hana 439 million baht, while Cal-Comp posted negative operating cash flow of 2.9 billion baht despite the strongest profit growth in the group. For the third quarter of 2026, the trend is improving. Delta views the second-quarter issue as merely a delivery postponement, not disappearing demand, after supply constraints began to ease. It expects third-quarter revenue to grow 10-15% from the previous quarter and maintains a 30% gross margin target, with second-half core profit expected at around 22-23 billion baht, up 55% from a year earlier and 45% from the first half. KCE gave a more positive outlook, expecting third-quarter volume to rise 8-9%. Price increases effective from July 1 are seen lifting printed circuit board revenue by a combined 17-19%, with gross margin expected at around 25%. As a result, quarterly core profit in the second half is likely to approach 500 million baht, and there is a chance of raising the 2027 revenue assumption from the previous plus 15% to around plus 20%, which could push 2027 core profit above 2.0 billion baht. Bualuang Securities maintains a neutral view on the electronics group, with the second-half trend improving on Delta's recovery and accelerating momentum at KCE. Delta keeps a buy rating with a target price of 440 baht. Hana is rated hold with a target price of 46 baht. KCE keeps a trading buy rating, but its target price is under review.

Kasikorn Securities said private investment in the second quarter of 2026 grew 13.4 percent, the highest in 11 years, supported by investment flows into S-Curve industries such as electronics, AI, and clean energy. Exports grew 12.5 percent, reflecting economic restructuring toward a New Economy production base, even as GDP slowed to 1.9 percent due to pressure from energy, inflation, and weaker consumption. The research team views this as positive for industrial estates, electronics, data centers, and clean energy, including WHA, Amata, Delta, Hana, KCE, and Gulf, driven by accelerating FDI and new infrastructure investment.

HANA shares closed up 22.01% at 48.50 baht after second-quarter results beat expectations and the stock was selected for inclusion in the MSCI Small Cap Index. Trading value reached 5.458 billion baht, the third highest on the market. DELTA closed at 277 baht, up 7 baht, on turnover of 6.108 billion baht. Several analysts raised their target prices for HANA to a range of 46.00 to 54.00 baht, but the current price is starting to look stretched and carries short-term correction risk. They recommend waiting for a pullback to the 43.00 to 45.00 baht support zone before accumulating. Investors holding the stock at low cost may consider selling part of their position to lock in profits. When comparing HANA and DELTA, HANA suits value investors focused on upside and dividends, while DELTA suits momentum investors riding the AI and data center theme, even though its valuation is much more expensive.

Several brokers are lining up to recommend buying HANA after second-quarter net profit for fiscal 2026 jumped 840% from the same period last year to 326 million baht. An analyst at Krungsri Securities set a 2027 target price of 51.70 baht, saying the share price rise is still not expensive at a P/E of only 24 times and a PEG of 0.55 times. Finansia Syrus raised its 2026-2028 profit estimates and lifted its target price to 53 baht. KGI Securities Thailand upgraded the stock from sell to buy and raised its end-2027 target price to 45 baht from 28 baht, noting the stock still has 13% upside from the latest close.

Hana Microelectronics, or HANA, reported core profit for the second quarter of 2026 at 278 million baht, up 169 percent from the first quarter and significantly above analyst forecasts. The result sent the share price up more than 20 percent to 48.75 baht, lifting the electronics sector including Delta Electronics, Cal-Comp Electronics, and KCE Electronics. Bualuang Securities said core profit was 25 percent above its estimate of 225 million baht and 54 percent above the market consensus of 181 million baht. It raised its 2026 core profit forecast by 10 percent to 1.065 billion baht and lifted its target price to 46 baht from 42 baht, while maintaining only a hold rating. Krungsri Securities kept a buy rating with a target price of 51.70 baht, forecasting 2026 profit of 995 million baht and 2027 profit of 1.431 billion baht. Phillip Securities raised its base-case target to 53.50 baht, while DBS Vickers set the highest target price at 54 baht.

Bualuang Securities released its review of the financial statements of 11 companies, finding that 8 reported better-than-expected profits: GUNKUL, CK, SPRC, CPF, CBG, AWC, HANA, and BCH. STECON and BH posted profits in line with expectations, while BTS reported a smaller loss than expected. GUNKUL posted core profit of 567 million baht, 7% above expectations. CK posted core profit of 800 million baht, 17% above expectations, and announced an interim dividend of 0.20 baht per share. SPRC posted core profit of 7.09 billion baht, 11% above expectations, and announced a first-half dividend of 0.50 baht per share. CPF posted core profit of 4.57 billion baht, 13% above market expectations. CBG posted core profit of 736 million baht, 13% above expectations. AWC posted core profit of 232 million baht, above expectations. HANA posted core profit of 278 million baht, 25% above expectations. BCH posted core profit of 343 million baht, 13% above expectations, and announced an interim dividend of 0.15 baht per share. STECON posted core profit of 910 million baht, in line with expectations. BH posted core profit of 1.89 billion baht, in line with expectations, and announced an interim dividend of 4 baht per share. BTS reported a core loss of 601 million baht, smaller than the slight profit originally expected.

MSCI rebalancing supports Thai stocks with net inflows of 500 million baht. GUNKUL and HANA surprised by entering the small-cap index, while PTTEP and TRUE received higher weightings. The market impact is expected to be neutral to slightly positive. PTT posted second-quarter profit for fiscal year 2026 surging 143.9 percent to 52.525 billion baht, supported by international trading, petrochemicals, refining and oil businesses as product price spreads improved, pushing first-half profit to 78.263 billion baht, up 74.5 percent. TOP reported net profit of 8.284 billion baht, up 28 percent year-on-year, with first-half net profit of 27.765 billion baht, and is moving ahead with the CFP project scheduled for 2028. AOT showed third-quarter profit for fiscal year 2026 of 4.44168 billion baht, up 14.93 percent, supported by a 2.61 percent increase in aeronautical revenue, especially passenger service charge revenue rising by 168.36 million baht, or 2.85 percent, after the charge was raised from 730 baht to 1,120 baht per person, pushing nine-month net profit to 14.81233 billion baht, up 3.86 percent, while total passengers reached 99.03 million, up 1.84 percent, with an average target price of 67.56 baht. BGRIM posted second-quarter profit for fiscal year 2026 growing by 676 million baht, up 9,557 percent, on higher total electricity sales volume, and continues expanding its renewable portfolio, targeting six LNG cargoes of 280,000 tonnes this year and gradually achieving commercial operation dates for new power plants, with an interim dividend of 0.18 baht per share. ACE reported second-quarter net profit for fiscal year 2026 of 278.7 million baht, surging 87.3 percent, supported by strong growth in solar and waste-to-energy power plants and lower financial costs, and is advancing a clean energy portfolio of 92 projects with total capacity of 767.42 megawatts. MGC posted second-quarter profit for fiscal year 2026 surging 554 percent to 352 million baht, a record high for four consecutive quarters, pushing first-half net profit to 675 million baht, up 521 percent, supported by deliveries of XPENG and Alpha X electric vehicles growing 688 percent, and the board approved an interim dividend of 0.24 baht per share with the XD date on 26 August. JMART's CEO is confident second-half profit for fiscal year 2026 will exceed the first half, driven by the lock-phone business, SINGER, JMT and Suki Tee Noi, maintaining a profit target for 2028 of more than 2 billion baht. ACE said it will continue seeking opportunities to bid for clean energy power plants in the second half of 2026 and accelerate construction of new projects, expecting several more projects to reach commercial operation by 2027. 88TH has laid out three growth strategies, expanding the LYO portfolio into China and Hong Kong and building a new S-curve in the pet business through Monster Lab, with new revenue expected to be recognised from the second half of 2026 after second-quarter revenue reached 151.82 million baht, up 10.16 percent. GFC is shifting its second-half strategy with digital marketing plans targeting Gen Z to drive egg-freezing services, while accelerating expansion of its foreign customer base through nine agents, aiming to raise the foreign customer share to 25 percent, partnering with more than eight hospitals, and approving an interim dividend of 0.03 baht per share. ILINK expects solar product sales revenue to double this year, benefiting from government subsidies of 50,000 baht per household for rooftop installation and a 200,000 baht tax deduction, with about 9 billion baht in auctions still pending, and hinted third-quarter results will grow on surging trading and engineering demand. III expects second-half performance to improve as the freight transport business enters its high season, advancing its Logistics and Beyond strategy to build an aviation ecosystem, with two to three M&A deals under negotiation and expected to be concluded within this year, while raising this year's revenue growth target to 20 percent from 15 percent, after posting second-quarter profit for fiscal year 2026 of 140.9 million baht, a ten-quarter high. SAWAD is pushing ahead at full speed, benefiting from the high season in the second half, confident this year's growth will meet targets, with first-half profit of 2.74 billion baht, up 16 percent, and brokers see SAWAD's asset quality as having passed its lowest point. TEAMG posted first-half revenue for fiscal year 2026 of 1.266 billion baht, up 22 percent, and profit of 111 million baht, up 18 percent, after second-quarter revenue of 635 million baht, up 19 percent, and profit of 61 million baht, up 29 percent, with the zoo phase two and light red line rail projects lifting backlog to 5.988 billion baht, and targets new work of at least 1 billion baht in the second half. KLINIQ posted second-quarter net profit for fiscal year 2026 surging to 111.53 million baht, up 24.9 percent, pushing first-half profit to 232.66 million baht, and the board approved an interim dividend of 0.88 baht per share with the XD date on 27 August and payment on 11 September 2026. PIS posted first-half net profit of 164 million baht, up 8 percent, with total revenue reaching 1.531 billion baht, up 6 percent, on continued project deliveries and effective cost control, and the second-half outlook is bright as it bids for new work to add to a backlog of more than 6.096 billion baht to be recognised over the next three to four years, confident of driving this year's revenue growth of 10 to 15 percent. MTC is expanding its loan portfolio amid Thailand's slowing economy, with first-half revenue of 16.064 billion baht, up 8.63 percent, and net profit of 3.728 billion baht, up 15.84 percent, while keeping NPLs at 2.61 percent and expressing confidence that second-half loan growth will be around 10 percent.

MSCI announced the results of its latest index review, with no changes to Thai stocks in the MSCI Global Standard index, but with additions and deletions of Thai stocks in the MSCI Global Small Cap index, effective after the close of trading on August 31, 2026. Two Thai stocks were added: Gunkul Engineering Public Company Limited, or GUNKUL, and Hana Microelectronics Public Company Limited, or HANA. Two stocks were removed: Chularat Hospital Public Company Limited, or CHG, and Jasmine Technology Solution Public Company Limited, or JTS.

Krungsri Securities expects the MSCI index rebalancing in August 2026 to drive net inflows into the Thai stock market of about 15 million US dollars, or roughly 500 million baht. In the MSCI Standard Index, no Thai stocks will be added or removed, with the number of constituents held at 18 companies and Thailand's investment weight steady at 1.0 percent, translating into inflows of 5 million US dollars, or about 165 million baht. Meanwhile, PTTEP's weight is being increased by about 23 million US dollars, or roughly 760 million baht, and TRUE's by about 17.5 million US dollars, or roughly 578 million baht. CPN's weight is being reduced by about 23.5 million US dollars, or roughly 777 million baht. In the MSCI Small Cap Index, GUNKUL is a new Thai entrant and is expected to receive about 8 million US dollars, or roughly 264 million baht, while HANA is expected to receive about 10 million US dollars, or roughly 330 million baht. CHG and JTS are being removed from the index, resulting in total net inflows into the MSCI Thailand Small Cap Index of 10 million US dollars, or roughly 330 million baht, and Thailand's weight rising from 2.5 percent to 2.6 percent.

Asia Plus Securities said the combined net profit of 277 Thai listed companies in the second quarter of 2026 came in 11.8% above market expectations, a factor supporting the SET Index's tendency to swing upward and test resistance at 1,630 points this week. Companies that reported standout earnings included CENTEL, BA, SPALI, BCP, SCC, PTTGC, SJW, ITC, SCGP, PTTEP, GULF, TTB, KTB and KCE, and this is expected to lead to upward revisions in market earnings estimates in the next phase. Asia Plus Securities recommends a Selective Buy strategy, naming ADVANC, HANA and SPALI as top picks for the day. It noted that ADVANC is attractive for its interim dividend yield of 2.3% of the market price. HANA's second-quarter results are expected to recover both quarter-on-quarter and year-on-year, and it is benefiting from being selected for the latest MSCI Small Cap Index. SPALI reported second-quarter net profit above expectations and announced an interim dividend of 0.55 baht per share, representing a yield of 3.5%.

Krungsri Securities expects the SET index to recover today, with resistance at 1,630 and 1,635 points and support at 1,607 and 1,598 points. US consumer inflation in July 2026 came in at 3.4 percent year on year and 0.1 percent month on month, down from 3.5 percent year on year, in line with expectations. This led the market to cut the probability of a Fed rate hike at the September meeting to 38 percent from 50 to 60 percent previously. On the domestic front, second quarter market earnings beat expectations, accelerating to 11.8 percent from 11.0 percent, and the 2026 power development plan shows signs of progress. The subcommittee drafting the plan met on August 17 and concluded a plan to expand power generation capacity by 20,000 megawatts, and may adjust direct power purchase agreement criteria to support data center demand. Top picks are GULF, KCE and HANA.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

Kasikorn Securities forecasts that Hana Microelectronics Public Company Limited, or HANA, will post a net profit of 200 million baht in the second quarter of 2026, a 4.8-fold increase from the same period last year and a 94 percent rise from the previous quarter. This is supported by a foreign exchange gain of about 30 million baht, compared with a loss of 118 million baht in the second quarter of 2025. Core profit is expected at 170 million baht, up 12 percent from a year earlier and recovering 16-fold from a low base in the first quarter, driven by stronger gross margins, higher revenue from accelerated orders in the printed circuit board assembly and outsourced semiconductor assembly and test businesses, as well as lower inventory provisions and a positive impact from a weaker baht. Sales revenue is projected at 162 million US dollars, up 3 percent year-on-year and 4 percent quarter-on-quarter. Gross margin is expected at 10.1 percent, up 0.7 percentage points from a year earlier and 2 percentage points from the prior quarter, as there is no net realizable value loss on inventory recorded, unlike the 168 million baht booked in the first quarter of 2026. Kasikorn Securities maintains a buy rating and a target price of 42.00 baht, based on the profit growth outlook for the second half of 2026.

The SET index closed on 31 July up 25.53 points at 1,623.64 points, with turnover of 89.032 billion baht. Buying came from foreign investors at 3.516 billion baht, funds at 2.037 billion baht, and broker portfolios at 493 million baht, while retail investors were net sellers of 6.046 billion baht. DELTA and electronics stocks such as HANA, KCE, and CCET were key drivers that pushed the index to close above 1,600 points. Meanwhile, THAI, which exits its trading suspension on 4 August, has up to 19 billion shares eligible for sale. An estimated 8 billion shares could be sold in the first minute by retail investors, funds, and insurance companies, while cooperatives and commercial banks that converted debt to equity at a cost of 2.50 baht are still weighing their decisions. TCAP closed at 78.75 baht, up 7 baht or 9.82%, hitting a 30-year high after the board approved a 7.5 billion baht share buyback programme between 17 August and 16 February 2026.

Electronics component stocks bounced back strongly, supported by a global upswing in technology and semiconductor investment sentiment. Delta Electronics Thailand, or DELTA, at 10:01 a.m. was at 276.00 baht, up 12.00 baht or 4.55 percent. HANA rose 5.22 percent to 35.25 baht, KCE added 4.64 percent to 39.50 baht, CCET gained 3.75 percent to 8.30 baht, SMT advanced 4.48 percent to 4.66 baht, and TEAM increased 3.14 percent to 4.60 baht. Analysts at Asia Plus Securities noted that DELTA reported second-quarter 2026 net profit of 6.075 billion baht, down 33 percent from the previous quarter but up 31 percent from the same period last year. The result came in below market expectations due to shortages of certain key raw materials. However, profit is expected to resume an upward trend from the third quarter of 2026, supported by the seasonal sales period and approximately 100 million US dollars in orders deferred from the second quarter, while raw material shortages are likely to ease from July 2026 after the company secured new alternative suppliers. The research team maintained a buy rating with a target price of 342 baht. For KCE, Kasikorn Securities estimates it will report second-quarter 2026 net profit of 237 million baht, up 30 percent year-on-year and flat quarter-on-quarter. Second-half 2026 profit is expected to grow both year-on-year and compared with the first half, driven by strong seasonal demand and an improving gross margin trend after major global PCB makers gradually raised average selling prices by about 30 to 50 percent. The firm kept a buy rating with a target price of 45 baht. As for HANA, Yuanta Securities Thailand estimates normalised profit of 182 million baht for the second quarter of 2026, up 76 percent quarter-on-quarter and 19 percent year-on-year. Normalised profit is expected to continue recovering in the second half of 2026 in line with the electronics industry cycle. The broker upgraded the stock to buy and raised its target price to 45 baht from 38 baht.

Thailand's exports in June 2026 expanded 20.8 percent from a year earlier, exceeding market expectations of around 15 percent, with a value of 34.6 billion dollars. Meanwhile, imports rose 50.3 percent to 41.1 billion dollars, resulting in a trade deficit of approximately 6.53 to 6.57 billion dollars. Key export growth drivers included pet food, which expanded for the tenth consecutive month, rising 22 percent, supporting ITC and AAI. Processed chicken grew for the seventh straight month, up 8.2 percent, boosting GFPT. Computers and components expanded for the 27th consecutive month, rising 57.4 percent, while phones, equipment, and components grew for the 13th straight month, surging 186 percent, benefiting electronic component stocks such as DELTA, HANA, and CCET. Rubber returned to growth for the first time in 14 months, supporting STA. On the risk side, new US tariff measures under Section 301 could affect some export stocks in the second half of the year.

Kasikorn Securities said DELTA's second-quarter 2026 net profit of 6.1 billion baht was 34% below its research forecast. While profit rose 31% from the same period a year earlier, it fell 33% from the previous quarter. Gross profit margin shrank to 26.8% from 31.7% in the first quarter of 2026, due to raw material shortages, higher component costs, and an additional inventory provision of 804 million dollars. Year-on-year profit growth was supported by a 47% increase in revenue, driven by strength in AI electronics and ICT infrastructure solutions. The quarter-on-quarter profit decline stemmed more from margin pressure than from the 6% rise in sales. The research team maintained a hold rating with a mid-2026 target price of 320 baht, and recommended switching into KCE and HANA instead.

Yuanta Securities Thailand has upgraded HANA to buy with a year-end 2027 fair value of 45.00 baht, seeing attractive upside on 2027 estimates despite a tight 2026 price-to-earnings ratio. The research team maintains its full-year 2026 profit forecast at 812 million baht, up 1 percent from the prior year, and expects earnings to accelerate in the remainder of the year driven by a semiconductor cycle recovery and a better gross margin from a weaker baht. For 2027, it projects normalised profit of 1.41 billion baht, a 74 percent increase from the prior year, marking the first full year of revenue contribution from the AI business and a significant reduction in losses at the PMS unit. For the second quarter of 2026, it estimates normalised profit of 182 million baht, up 76 percent quarter-on-quarter and 19 percent year-on-year, supported by a recovery in US-dollar revenue, lower extraordinary costs in cost of sales, and a weaker baht.

Phillip Securities assesses that the impact of the new US tariff wall on Thai stocks will be limited. Exempted goods include electronic components, communication equipment and devices, computer storage units, and other electronic devices, meaning stocks in the electronic components sector such as KCE, HANA, DELTA, and CCET will see minimal impact. Meanwhile, animal feed stocks like ITC and AAI may experience some effects. In a worst-case scenario, ITC's profit could decline by 240 million baht, or 7.1% from current levels, but the new base price of 18.02 baht still offers 5.88% upside from the current price. Thailand's trade figures for June 2026 continued to expand, with exports growing 8% year-on-year and imports rising 3% year-on-year.

The Trade Policy and Strategy Office of the Ministry of Commerce reported that Thai exports in June 2026 reached 34.66 billion dollars, up 20.8 percent from the same month last year, extending growth for a 24th consecutive month and exceeding market expectations of 13.7 to 15.2 percent. Meanwhile, imports totaled 41.19 billion dollars, rising 50.3 percent, resulting in a June trade deficit of 6.53 billion dollars. For the first half of the year, exports amounted to 196.74 billion dollars, up 17.6 percent, and imports reached 228.49 billion dollars, up 38.0 percent, leading to a cumulative trade deficit of 31.74 billion dollars. Analysts at Yuanta Securities noted that the stronger-than-expected exports and the deficit are factors weighing on the currency, and highlighted five stock groups poised to benefit: rubber, which returned to growth of 12.5 percent after 14 months, supporting STA, NER, and TEGH; processed chicken, supporting GFPT, TFG, and CPF; pet food, which continued to grow 22.3 percent for a tenth straight month, supporting ITC and AAI; canned seafood, which resumed expansion at 17.5 percent, supporting TU; and electronic components, which accelerated growth, supporting SMT, CCET, KCE, and HANA.

Hana Microelectronics, or HANA, expects normalized profit in the second quarter of 2026 to recover markedly to 182 million baht, up 76 percent from the previous quarter and 19 percent from a year earlier. The improvement is driven by US dollar revenue projected at 160 million dollars, up 3 percent quarter-on-quarter and 2 percent year-on-year, thanks to a recovery in the PCBA and IC businesses, while the PMS business is still seeing a limited rebound. Gross margin is expected at 10.0 percent, up 192 basis points from the prior quarter and 58 basis points from a year ago, helped by a 3.4 percent depreciation of the baht against the dollar and better capacity utilization. Selling and administrative expenses are forecast to drop 9 percent from the previous quarter to 450 million baht, as the prior quarter included special expenses. The company is scheduled to announce its results on August 14, 2026. For the remainder of the year, the outlook is for a gradual improvement along with the semiconductor industry upcycle, and there is still an opportunity to receive additional orders from AI customers later in the year, which could provide further support. HANA maintains its normalized profit forecast for 2026 at 812 million baht and for 2027 at 1.41 billion baht, which is expected to be the first year to fully recognize revenue from the AI business.

Electronics stocks moved higher across the board this morning, supported by a weaker baht and the technology and AI investment trend. At 10:41 a.m., DELTA was at 306.00 baht, up 0.66 percent; KCE at 42.00 baht, up 0.60 percent; HANA at 39.25 baht, up 0.64 percent; SMT at 4.80 baht, up 1.69 percent; and CCET at 9.10 baht, up 0.55 percent. Yuanta Securities noted that the persistently weaker baht is positive for exporters, and the electronic components industry is showing signs of recovery. HANA is supported by Texas Instruments' better-than-expected earnings, while DELTA benefits from Google increasing its AI investment budget. Meanwhile, KCE's target price has been raised to 48.50 baht on expectations that earnings have passed their trough, and SMT remains a stock of interest due to its earnings turnaround potential.