Bualuang raises KCE target to 70 baht, eyes Tesla Optimus and AI/datacom work

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Bualuang Securities has raised its target price for KCE Electronics to 70 baht from 60 baht, maintaining a speculative buy recommendation. It estimates core profit for 2026–2027 at 1.44 billion baht, up 78% year on year, and 2.07 billion baht, up 44% year on year, respectively. The research team says the stock's next upside round depends on two factors that are not yet fully confirmed. The first is the chance to enter the supply chain of Tesla Optimus. KCE has not confirmed Tesla as a customer, only that there are potential transactions with a US company. It estimates that one robot uses about 40–50 PCB panels, or roughly 4 square feet, worth about US$90 per unit. If Fremont reaches its designed capacity of 1 million units a year and KCE wins a 10% share, that would generate revenue of about US$9 million, or roughly 2% of sales, and add about 5% to core profit. The second factor is AI/datacom work, which is the larger upside. KCE has installed capacity of 3.6 million square feet per month and is using only about 65%, leaving roughly 1.26 million square feet per month of spare capacity, plus space at the Rojana plant for another 1 million square feet per month. However, KCE is not yet ready to produce high-end AI circuit boards such as UBB/OAM or 800G/1.6T. A more likely starting point is 6–14 layer work for power systems, control and accessories, before moving up to network products of up to 400G after customer certification. If KCE shifts 50% of its spare capacity in 2027 to these higher-value jobs, the research team estimates upside of about 10–15% for revenue and 15–20% for core profit, with yield, process know-how and customer certification the deciding factors. In a bull case where KCE does enter AI/datacom work, the value is 85 baht.

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Bualuang raised KCE's target price to 70 baht from 60 baht and maintained a speculative buy rating on higher 2026-2027 profit estimates.

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CGSI maintains Hold on KCE with 70 baht target, raises EPS by 18-35%

CGSI has revised up its earnings per share forecasts for KCE Electronics Public Company Limited, or KCE, by 18-35% for 2026-2028, and raised its target price to 70 baht from the previous level, while maintaining its Hold recommendation, as it views the current share price as having already priced in much of the recovery in the printed circuit board business. The revision reflects higher assumptions for sales volume, average selling prices, and improved operating leverage. CGSI raised its PCB sales forecasts for 2027-2028 by 12-20% on rising demand for server boards and the recognition of capacity from new plants. For third-quarter 2026 results, CGSI expects KCE to post normalized profit of 495 million baht, up 70% year on year and 105% quarter on quarter, on sales growth of 25% year on year and a gross profit margin expected to rise to 22.5% from 18.9% in the second quarter of 2026. On new capacity, management said at an analyst meeting in August 2026 that KCE plans to add about 1 million square feet per month of PCB capacity, or a 28% increase from the current capacity of 3.6 million square feet per month, with the new plant expected to start production in mid-2028. CGSI expects capital expenditure of about 6-8 billion baht, compared with cash on hand of 1.7 billion baht at the end of June 2026 and projected 2026 EBITDA of 2.05 billion baht, which could force the company to borrow more and cut its dividend payout ratio during the investment period.
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