Yuanta Expects Thai Electronics Sector to Benefit From Weakening Baht and AI Investment Trends

Yuanta Securities (Thailand) wrote that the Thai electronics sector continues to benefit from the weakening Thai baht against the U.S. dollar. This trend is especially favorable for exporters, who gain from exchange rate movements. Stocks in the sector remain positioned to benefit further from the recovery in the electronic components industry and increasing demand for technology products. HANA is identified as benefiting from Texas Instruments’ stronger-than-expected second-quarter 2026 results, which exceeded market expectations by approximately 9%. Texas Instruments has also provided guidance for 5% revenue growth in Q3 compared to the previous quarter, which is a direct positive for HANA. The stock is therefore anticipated to attract short-term speculative interest, although the outlook for 2026 remains challenging. Nevertheless, there is still potential upside for HANA in 2027, given its current price level. DELTA is supported by Google’s recent increase in capital expenditure, reflecting robust trends in technology and AI infrastructure investment—an overall positive for DELTA’s business. However, DELTA’s second-quarter 2026 earnings may not be as outstanding as previously anticipated. The company is projected to return to its normal growth potential in the latter half of 2026. As a result, Yuanta recommends waiting for an accumulation opportunity after the financial results are released. KCE has seen its target price revised upward to THB 48.50 per share by the brokerage, after its performance appears to have passed the trough. Profit in 2Q26 is expected to improve both quarter-on-quarter and year-on-year, while the depreciation of the baht should also outweigh the negative impact of high copper prices, supporting the recovery of the company’s gross profit margin. SMT remains the most popular stock in the group. Should the company achieve a profit turnaround in line with the broader industry recovery, the current share price remains reasonable, offering potential upside from the ongoing rebound in the electronics sector. Overall, the electronics sector continues to receive tailwinds from weakness of the Thai baht, along with the positive trends in technology and AI investment. These factors are likely to provide growth opportunities for operators in the sector. Investors are recommended to closely monitor 2Q26 earnings and trends in order activity during the second half of the year.