RELATIVE VALUATION OF KCE ELECTRONICS PUBLIC COMPANY LIMITED

Abstract

The purpose of this valuation report is to find the target price of KCE Public Company Limited (KCE), one of the massive PCB manufacturers for Automotive in Thailand and listed in the global top rank. In 2017-2021, KCE’s revenue growth was slow down from the impact of COVID-19 spreading in global. During the past phase, KCE projected that there are sustainable potential in Automotive market especially EV car which require a massively technology inside. Therefore, KCE invest a lot in expansion the facility and technology and plan that they will reverse back to achieve CAGR 15% from 2022- 2026. The average target price during 2023 – 2024 is equal to THB 61.22 per share compared to the recent price as of 31 Mar 2022 is equal to THB 65.60 per share means that the current price is trading overvalued. The incoming trend of technology in passenger car and emerging of EV car market would trigger the high demand of PCB part and strengthen the financial performance of KCE company. However, since economics worldwide and the war are crucial factors to be concerned for investors. Thus, the recommendation for the existing and potential investors to KCE is “Hold” until any further new business plan release out from the company and better economic situation