On 3 January, share prices of the electronic sector started to recover, after a nose-diving session yesterday in response to an announcement from the director-general of the Revenue Department, saying that Thailand will start imposing a 15% global minimum tax (GMT) on multinational enterprises on 1 January 2025.
Stocks in the electronics sector saw their prices edged higher at the opening on Friday, but pared gains as the session progressed to settle the morning session up around 1%.
The upsurge was led by KCE Electronics Public Company Limited (SET: KCE) whose share rose 1.68% to THB 24.20 during the morning session, with price reaching its highest at THB 24.90 and lowest at THB 23.90, with a total trading value of THB 216.48 million.
Hana Microelectronics Public Company Limited (SET: HANA) has its share price at THB 24.70 or 1.65% gain, with price reaching its highest at THB 25.50 and lowest at THB 24.40, with a total trading value of THB 118.67 million.
Delta Electronics (Thailand) Public Company Limited (SET: DELTA) has its share price at THB 141.00 or a 1.44% gain, with price reaching its highest at THB 142.50 and lowest at THB 139.50, with a total trading value of THB 1,009.47 million.
Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) has its share price at THB 9.95 or a 1.02% gain, with price reaching its highest at THB 10.10 and lowest at THB 9.85, with a total trading value of THB 296.20 million.
Analysts from Bualuang Securities have estimated an impact of 15% GMT on the bottomline of listed companies in Thailand in 2025 at 0.5-0.7%, and the industries that would be impacted the most are the electronics group, food group, motor vehicle group, and energy group.
DELTA will receive the most impact starting in 1Q25, where the company is expected to have its profit cut down to THB 5,500 million from the initial estimation of THB 6,000 million, and the company’s overall profit in 2025 is expected to shrink down to THB 26,000 million from the initial estimation of THB 28,000 million. Judging from the impact, the securities have lowered the target price down to THB 110 from THB 126.
Companies in electronic groups such as CCET, which have revenue more than EUR 750 million, would also be impacted by the tax as well, while HANA and KCE will not be impacted by the tax, as their revenue does not exceed the tax’s threshold.
