ASC 100: Thailand's KCE Electronics sees surging demand for car PCB

Thailand's major car component supplier KCE Electronics is seeing significant demand for car PCB and electronics.

KCE is the eighth largest car PCB manufacturer in the world, and its PCBs are also used in calculators, telecom devices, and other electronics.

KCE has become one of the tier-1 suppliers in the car supply chain across Europe and the US. Car applications represent 75% of KCE's revenue.

KCE's share price has surged over 200% in the past 12 months. Its founder Bancha Ongkosit is one of the richest businessmen in Thailand with a net worth of US$970 million.

KCE Electronics reported net profit of THB503 million (US$15.1 million) in the first quarter this year, which is almost half of its profits for the whole year of 2020.

According to DBS' estimates, KCE's profits are expected to double this year and to grow 17% more in the next year as demand and PCB price rise. KCE adding highly profitable products to its product mix also helps improve its profit margin.

According to Prismark Partners, global production of PCB in 2020 increased 4.4% to US$64 billion and is expected to grow at 5.1% CAGR from 2020 to 2024. The smartphone, car, and 5G network segments are driving demand for PCB higher.

Car PCBs represent about 10% of total global PCB production and will continue growing fast.

Source: Reuters, Compiled by Digitimes, August 2021