Stocks relating to electronic parts in the Thai Exchange rose on Tuesday, following the increased sentiment in the US Nasdaq Composite.
At 10.17 a.m. (Bangkok Time), DELTA jumped by 2.96% or THB 2.50 to THB 87.00, with a trading value of THB 397.19 million. HANA grew by 1.93% or THB 1.00 to THB 52.75, with a trading value of THB 178.52 million. KCE edged up by 1.44% or THB 0.75 to THB 53.00, with a trading value of THB 97.14 million.
Yuanta Securities (Thailand) stated that tech stocks edged higher this morning in accordance with the rising Nasdaq Composite and the expectations from investors which anticipated that the US Fed interest rate had already passed the highest point, according to the statement from the Fed authority last night.
Meanwhile, the share price of Nvidia, the world’s most valuable chipmaker and the leading supplier of processors, hit a record high on Monday, following the announcement of the GeForce RTX 40 SUPER Series of graphics processors, which mainly focused on gaming performance and artificial intelligence (AI) usage. The company also unveiled components and software relating to AI ahead of the Consumer Electronics Show in Las Vegas this Wednesday.
Kasikorn Securities analysed that DELTA’s base price was at THB 87. The estimated normal profit in 4Q/23 will be at THB 4.7 billion, increased 4.6% YoY, but decreased 6.7% QoQ. The decline was caused by the slowing revenue QoQ, while SG&A may rise. The analyst expected the revenue and net profit to bounce back in 1Q/24, following the higher demand of EV components. The data center sales is expected to edge up by 10% in 2024, supported by further investment plans in the server and cloud projects for hyper-scale clients. As a result, the normal profit is expected to increase by 31% in 2024.
Krungsri Capital Securities stated that HANA is expected to gain a normalized profit of THB 679 million in 4Q/24, an increase YoY and the same amount QoQ. GPM is expected to showed flat growth or slightly decrease QoQ due to;
1. Microelectronic clients, including automakers are expected to continuously make purchase orders but with more cautiousness.
2. The PMS sales in Korea edged a bit higher.
3. Semiconductor clients, from both Ayutthaya and China, are expected to slow, as the downstream industry, which is smartphone, still remains in stock.
The material stock, such as semiconductors, could take around six months to unburden. Thus, the semiconductor business, such as HANA will show a distinct sign of recovery in 2Q/24, while the trading valuation on PER24F is around 19.2 times, which is investable.
The rise of Nvidia stock, recording a new high after unveiling the plan to deploy Generative AI chips to PC and laptop, has led to the business opportunities for other chipmakers. In addition, HANA could benefit from an upside in the next orders, with a target price of THB 57.
