KGI Securities (Thailand) Public Company Limited

Technology component stocks led by KCE and HANA rose more than 2%. At 10:55 a.m., KCE stood at 67.25 baht, up 1.50 baht or 2.28%, with trading value of 764.19 million baht, while HANA stood at 49.50 baht, up 1.00 baht or 2.06%, with trading value of 677.56 million baht. This followed an analysis note from KGI Securities (Thailand) stating that KCE has an opportunity to expand into the printed circuit board, or PCB, business for humanoid robots, after KCE informed the Stock Exchange of Thailand on September 11, 2026, that it is in negotiations to buy and sell products with a company in the United States, which KGI believes could be Tesla, and the product could be PCBs for the Tesla Optimus robot. Tesla aims to scale up robot production from about 10,000 units initially to 1 million units per year, and eventually to 10 million units in the long term. KGI preliminarily estimates that revenue from this project could account for roughly 0.3% to 1.3% of KCE's total revenue, under the assumption of production of 1 million robots using PCBs worth 150 to 200 US dollars per unit and KCE holding an order share of about 1% to 3%. It has therefore not yet included revenue from this project in its forecasts. It also raised its core business profit forecasts for 2026-2027 by 6% to 25%, recommended "Hold" on KCE, and raised its end-2027 target price to 62 baht from 48 baht, based on a PER of 40 times. Meanwhile, HANA is expected to benefit indirectly from the upgrading of the AI server supply chain through three key businesses: thermal solutions for HBM and GPU through a partnership with Phononic, high-density PCBA testing equipment, and SiC solid-state transformers. KGI raised its profit forecasts for HANA by 6% to 11%, maintained its "Buy" recommendation, and raised its end-2027 target price to 63 baht from 45 baht, based on a PER of 40 times, expecting normal operating profit in 2027 to grow 44%.

Two brokerages have maintained their buy recommendations on BEM shares, with KGI Securities (Thailand) setting a sum-of-the-parts target price of 8.40 baht and Yuanta giving a fair value of 10.50 baht for the end of 2026. This follows the August 2026 report on Blue Line electric train passenger volumes, which averaged 444,000 people per day, up 1.0% year on year and 4.2% month on month, while ticket sales revenue came in at 13.2 million baht. Average daily vehicle volume on the expressway was 1.12 million vehicles, up 0.7% year on year and 1.4% month on month, generating revenue of 25.6 million baht. For the first eight months of 2026, average passenger volume was 424,500 people per day, up 0.8% year on year, and average vehicle volume was 1.1 million vehicles, up 0.8% year on year. KGI maintained its 2026 profit forecast at 3.9 billion baht, up 4% year on year, and its 2027 forecast at 4.0 billion baht, up 3% year on year, excluding any upside from the Orange Line. Yuanta maintained its 2026 normalized profit forecast at 3,973 million baht, up 5.1% year on year, and expects third-quarter 2026 profit to hit a new all-time high, driven by a dividend of 221 million baht received from TTW and the start of maintenance cost savings on the Purple Line. Meanwhile, the first of 32 trains for the entire Orange Line will be delivered to Thailand in November 2026, with the eastern section expected to begin commercial service by January 2028 and the western section by July 2030.

KGI Securities (Thailand) said in an analysis that Bangkok Expressway and Metro, or BEM, will post strong profit in the second half of the year. In August 2026, average electric train ridership was 444,000 passengers per day, up 1.0% from the same period last year and up 4.2% from the previous month, while average fare revenue was 13.2 million baht per day. In the expressway business, average traffic volume was 1.12 million vehicles per day, up 0.7% from a year earlier, with average revenue of 25.6 million baht per day. For the first eight months of 2026, average train ridership was 424,500 passengers per day, up 0.8%, and average expressway traffic was 1.10 million vehicles per day, up 0.8%. KGI expects third-quarter 2026 ridership and revenue to rise about 1-1.3% from the same period last year and 11-12% from the previous quarter. It maintained its 2026 net profit forecast at 3.9 billion baht, up 4% from a year earlier, and its 2027 forecast at 4.0 billion baht, up 3%. It also maintained its Buy recommendation with a sum-of-the-parts target price of 8.40 baht, comprising 6.30 baht for the core business, 0.75 baht for investments in TTW and CKP, and 1.35 baht for the Orange Line electric train project.

KGI Securities (Thailand) stated that the Cabinet has approved Bangkok Flight Services Ground Company, or AOTGA, as the winner of the bidding for the cargo warehouse, aircraft parking, and ground services project at Suvarnabhumi Airport under the PPP Net Cost model. AOTGA will become the third service provider. The project comprises two main contracts: cargo warehouse services, and aircraft parking, ground support equipment, and passenger services, with a concession period of 25 years and a total value exceeding 67 billion baht. AOTGA is a joint venture between AOT, holding 49%, and Bangkok Flight Services Ground Company, or SAL, holding 51%. SAL is a subsidiary of Sky ICT, or SKY. KGI Securities estimates that AOTGA will manage approximately 400,000 to 600,000 tons of cargo per year, generating revenue of about 4 to 6 billion baht annually, and expects AOT to recognize profit sharing of approximately 400 to 600 million baht per year, representing an opportunity to increase its FY2027 net profit forecast by about 1.5% to 2.2%. KGI Securities maintains a "Buy" recommendation with a FY2027 target price of 71 baht.

KGI Securities (Thailand) stated that CPAXT has launched "The Happitat" project on August 21, 2026, under the concept of "Happiness-Led Destination," with a total investment value of 15 billion baht. The project is divided into three main towers, with a total retail area of approximately 43,000 square meters and a total office area of approximately 24,000 square meters. It is expected to attract about 19 million visitors per year and is expected to recognize a loss of 500 million baht from this project this year. In the acquisition of ordinary shares of The Food Purveyor Sdn. Bhd. Group (TFP), the final price was MRR 1,597 million, or approximately 13.095 billion baht, with 80% of the funding coming from bank loans. The company expects TFP's sales to account for approximately 4% of its retail sales and to support profit growth from 2027 onwards. However, CPAXT's profit is expected to decline in the third and fourth quarters of this year due to the impact of government stimulus measures and business expansion costs. The company maintains its 2026 profit forecast at 8.8 billion baht and maintains a "Hold" recommendation with a year-end 2026F target price of 15.00 baht, based on a PER of 18.0 times.

CP Axtra, or CPAXT, announced the completion of its acquisition of The Food Purveyor, a premium supermarket operator in Malaysia, for 1,660 million Malaysian ringgit, or approximately 13,483 million baht. Its subsidiary, Lotuss Stores (Malaysia), acquired 100% of the shares on September 1, 2026, after fulfilling conditions and obtaining regulatory approvals. This makes The Food Purveyor an indirect subsidiary, operating under the brands Village Grocer, B.I.G., BSC Fine Foods, OTK, and The Food Merchant, with a total of 50 branches. KGI Securities expects TFP's profit to be around 38 million ringgit, or 300 million baht per year, based on a 31% market share in Malaysia's premium supermarket market, which is valued at 4.1 billion ringgit, and a net margin of 3%. Meanwhile, CPAXT may incur debt of 60-70% of the investment value and use some cash of around 4-5 billion baht, causing its debt-to-equity ratio to rise from 0.4 times to 0.42-0.43 times. The outlook is neutral due to limited synergies, and third-quarter profit is expected to decline due to government stimulus measures and business expansion costs. The recommendation is 'Hold' with a target price of 15 baht.