KCE: Stock Is Expensive Even with Strong 2021-22E Earnings

KCE: Expected 2Q21E Earning at Bt531m (+644%YoY, +6%QoQ)

HANA: Cheap Valuation and Clean Balance Sheet

KCE: Riding the European Automotive Upcycle

DELTA: Prime Beneficiary of Transition to Electric Vehicles

SIS: Cheap Valuation with Solid Earnings Growth

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

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Equity Bottom-Up

<p><strong>We maintain HOLD rating with a new 2021E target price of Bt31.25, from Bt27.00, derived from 22.7x PE’21E, which is +1 SD of its 5-year trading average.</strong></p><div>•KCE net profit in 3Q20 was Bt250m (-2%YoY, +252% QoQ). Effective expenses control help buoying earnings YoY, while the QoQ spike was from recovery from Covid-19.</div><div>
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</div><div>•We revised down 2020E earnings by 14%,  but revised up 2021-22E earnings forecast by 15% and 12%, respectively</div><div>
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</div><div>•We believe 2021E revenue would be back to pre trade war level, driven by bright outlook for automotive sector in Europe.</div><div></div><p><strong>We like KCE as it would ride the European automotive upcycle. However, the share price seems to already reflect its current business strengths, trading beyond +1 SD PE valuation.</strong></p>

We maintain HOLD rating with a new 2021E target price of Bt31.25, from Bt27.00, derived from 22.7x PE’21E, which is +1 SD of its 5-year trading average.•KCE net profit in 3Q20 was Bt250m (-2%YoY, +252% QoQ). Effective expenses control help buoying earnings YoY, while the QoQ spike was from recovery from Covid-19.
 
•We revised down 2020E earnings by 14%,  but revised up 2021-22E earnings forecast by 15% and 12%, respectively
 
•We believe 2021E revenue would be back to pre trade war level, driven by bright outlook for automotive sector in Europe.We like KCE as it would ride the European automotive upcycle. However, the share price seems to already reflect its current business strengths, trading beyond +1 SD PE valuation.

KCE: Bright Outlook but at Demanding Valuation

KCE Electronics PCL

KCE: Bright Outlook but at Demanding Valuation