KCE Electronics Public Company (KCE) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue reached Bt4,246.1 million, up 6.18% year-over-year and 8.17% sequentially; net profit was Bt635.1 million, up 68.82% year-over-year and 23.22% sequentially.

• Sales revenue in Baht grew 2.93% year-over-year, with PCB shipment volume up 6.87% year-over-year; special grade PCB (HDI) volume surged 33.76% year-over-year.

• Gross margin improved to 24.8% from 19.1% year-over-year, driven by FX gains and cost reduction initiatives.

• Net profit margin rose to 15.8% from 9.7% year-over-year, supported by a Bt144.5 million gain from asset sales.

Financial highlights

• Q2 2024 total revenue: Bt4,246.1m (+6.18% YoY, +8.17% QoQ); sales revenue: Bt4,011.9m (+2.93% YoY, +6.14% QoQ).

• Net profit: Bt635.1m (+68.82% YoY, +23.22% QoQ); basic EPS: Bt0.54 (Q2 2024).

• Gross margin: 24.8% (Q2 2024) vs 19.1% (Q2 2023); net profit margin: 15.8% (Q2 2024) vs 9.7% (Q2 2023).

• Six-month 2024 revenue: Bt7,791.6m (vs Bt7,922.7m in 2023); net profit: Bt1,164.3m (vs Bt733.5m in 2023); basic EPS: Bt0.97.

• Other income in Q2 2024 rose to Bt234.2m, mainly from a Bt144.5m gain on asset sales.

Outlook and guidance

• Backlog of orders at end-June 2024 was $5.9m, with $2.1m delayed shipments expected to contribute to Q3 2024 revenue.

• Company expects normalization of global PCB inventories in H2 2024, with special grade PCB (HDI) demand remaining strong.

• Focus remains on manufacturing efficiency, HDI capacity expansion, and cost control.