ETRON Stocks Enjoy the Hike as Potential Upside Narrows Down to a Single Digit


The electronics component stocks in SET Index enjoyed the sentiment from Nasdaq Composite over Tuesday night and closed higher on Wednesday.

 

On Wednesday, March 10, 2021, SET Index closed at 1,573.05 points, increased 22.46 points or 1.45% with a trading value of 108 billion baht.

KCE Electronics Public Company Limited (KCE) closed at ฿55.50/share, increased 4.13%.

Hana Microelectronics Public Company Limited (HANA) closed at ฿52.00/share, increased 5.0%.

SVI Public Company Limited (SVI) closed at ฿4.80/share, increased 3.45%.

Stars Microelectronics (Thailand) Public Company Limited (SMT) closed at ฿4.20/share, increased 5.42%.

 

Last night, stocks in Nasdaq Composite made a short coverage and closed 3.7% higher despite a slight gain in Dow Jones. Tesla rose 19%, Amazon increased 3.8%, Facebook gained 4% and Apple hiked 4%.

 

The positive sentiment from Nasdaq buoyed tech stocks in SET Index that have been dropping since the rally in January-February over the shortage in semiconductors during the lockdown to the point that gaming consoles were sold out, causing the prices to rise higher for certain semiconductors.

Even though the demand for semiconductors would remain high for a few months, the supply will eventually meet up with the demand, possibly in 3Q21.

 

Meanwhile, the upside for the target price in these stocks is almost full after a series of hikes since the low point in March 2020, when the global economy plunged to a decade low over concerns of a coronavirus outbreak.

 

Bloomberg Consensus gave a target price for KCE at ฿59.29/share, representing a 6.82% upside from the closing price on Wednesday at ฿55.50/share. The share price is slightly lower than its all-time high at Bt61.00 in 2016.

As for HANA, Bloomberg Consensus gave a target price at ฿50.83/share, representing a 2.24% downside to its closing price on Wednesday at ฿52.00/share. The closing at Bt52 was HANA’s new record high.

The consensus target price of SVI was ฿4.78/share, representing a downside of 0.42% to its closing price at ฿4.80/share. The closing price is slightly lower than its previous high at Bt5.60, but to get to its record high at Bt14.60 back in 1990 might be a tough road.

Meanwhile, the target price for SMT remained high at ฿5.50/share, representing a target price of 30.95% from its closing price at ฿4.20/share. Its previous high is Bt6.95 in 2016, but an all-time high would be at Bt10.65 back in 2011. Phillip Securities expected the company to gain more orders continuously, while the current orders were fully booked until 3Q21. Moreover, the company would receive higher profit from its GPM that rose from 13.5% in 2019 to 18.7% in 2020.

 

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