Maybank Thailand Securities maintains a “Buy” rating on Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET), highlighting it as a top pick in the Thai electronics sector for strong growth from a new manufacturing facility.
The company projects a strong growth trajectory for 2025 and 2026, expecting “at least double-digit” increases in revenue and earnings driven chiefly by sales from new laser printing and SSD clients.
The new manufacturing facility in Phetchaburi is progressing on schedule, with production for its first laser printing client anticipated to start in the first half of 2025, while another laser printing client is set to commence production in the second half. However, Cal-Comp Electronics has yet to finalize a new contract for Factory 14 after foregoing an agreement in November 2024 with a potential customer who could not commit to long-term orders. Maybank Thailand emphasizes that this poses no risk to their forecasts, as predictions are based solely on secured deals.
The management at Cal-Comp perceives the decline in gross profit margin (GPM) during the fourth quarter of 2024 as temporary, resulting from seasonal product variations and substantial labor bonuses. Looking forward, they anticipate an upward trend in GPM year-over-year from 2025, barring any foreign exchange impacts. This growth is expected to be fueled by an enhanced product mix and a strategic shift towards increased automation.
Maybank Thailand remains positive on Cal-Comp Electronics, viewing the recent drop in share prices as unwarranted, a reflection of negative sentiment toward the sector rather than the company’s fundamentals. Notably, revenue for January and February has already climbed 18% YoY, excluding the impending impact of new laser printing clients. Maybank Thailand plans to provide an updated perspective on the company’s performance in the coming weeks.
