Tuesday, September 22, 2020

Price of electronic shares skyrocket in morning trade

Jul 29. 2020
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By The Nation

The price of electronic shares surged by 8 per cent this morning (July 29) in response to strong second-quarter performance by Delta Electronics (Thailand).

The price of Delta’s shares rose by 11 per cent, KCE Electronics 8 per cent, Hana Microelectronics 5 per cent and SVI 5 per cent.

Delta, in its second-quarter performance announcement on July 24, said the company's net profit was Bt2 billion, up 130 per cent year on year as its operating costs dropped by 4.2 per cent while sales increased by 3.5 per cent.

A stock analyst at UOB Kay Hian Securities said Delta’s gross profit margin was 27 per cent, better than the expected 22.

“We expect Delta’s gross profit margin to increase further in the second half of this year, so we increased the company’s profit forecast this year and next year to 61 per cent and 45 per cent, respectively,” the analyst said.

“Also, we advise investors to buy this stock at Bt124 per share.”

The analyst added that the strong performance in electronic stocks helped boost the Stock Exchange of Thailand Index in morning trade.

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