KCE Electronics Public Company (KCE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was Bt3,852.1 million, down 12.8% year-over-year and 9.3% sequentially; net profit fell to Bt216.3 million, a 58.4% year-over-year and 65.9% sequential decline.

• Sales revenue in Baht terms dropped 12.1% year-over-year, but in USD terms, sales were down 11.2% year-over-year and flat sequentially.

• Gross margin declined to 20.2% from 22.0% a year ago and 24.8% in Q2 2024, mainly due to Baht appreciation and high-cost inventory.

• Administrative expenses rose sharply due to a Bt169.9 million foreign exchange loss; excluding this, admin expenses were stable as a percent of sales.

• Basic EPS for Q3 2024 was Bt0.18, down from Bt0.44 in Q3 2023.

Financial highlights

• Q3 2024 sales revenue: Bt3,802.3 million (down 12.1% year-over-year, down 5.2% sequentially).

• Q3 2024 net profit: Bt216.3 million (down 58.4% year-over-year, down 65.9% sequentially).

• Gross margin: 20.2% (vs. 22.0% Q3 2023, 24.8% Q2 2024).

• Net profit margin: 5.7% (vs. 12.0% Q3 2023, 15.8% Q2 2024).

• 9M 2024 net profit: Bt1,389.8 million, up 10.2% year-over-year; 9M 2024 EPS: Bt1.16 (vs. Bt1.05 in 9M 2023).

Outlook and guidance

• Company expects to clear a USD 6 million order backlog and delayed shipments (USD 2.4 million) in Q4 2024.

• Machinery upgrades to be completed within 2024, aiming to boost HDI PCB capacity and efficiency.

• New factory project at Rojana Industrial Park remains under review, with timing dependent on market conditions.