Key insights
- TISCO Securities upgraded Thailand's electronic components sector to "overweight" from "neutral", citing improved second-half 2026 prospects, better visibility on data-center spending, and recent underperformance. Delta Electronics Thailand and Hana Microelectronics were upgraded to "buy" due to expected demand from hyperscalers and AI companies, and AI revenue opportunities, respectively. KCE Electronics maintained a "hold"
Investing.com -- TISCO Securities upgraded its rating on Thailand's electronic components sector to "overweight" from "neutral", citing stronger second-half 2026 prospects, better visibility on data-center spending and a sharp recent underperformance that it said had captured much of the market's pessimism.
TISCO also upgraded Delta Electronics Thailand to "buy" from "hold", raising its target price to 282 baht from 268 baht, and raised Hana Microelectronics to Buy from Hold, with its target lifted to 61.50 baht from 50.50 baht.
It maintained a "hold" rating on KCE Electronics while increasing its target to 60.25 baht from 55.50 baht.
The broker said the sector had underperformed the broader SET index by about 33% recently, while a stronger 2H26 outlook and better-than-expected data-center capital spending plans for 2027 supported its upgrade.
TISCO also rolled its valuation framework forward to 2027 using 2028 earnings estimates.
For Delta, TISCO said the recent 37% decline from its June 2026 peak had priced in potential downside from raw-material shortages, uncertainty over royalty fees and a bond issuance by parent Delta Taiwan.
It expects gradual improvement in raw-material availability and price adjustments in early 2027 to provide additional support, while demand remains robust.
TISCO expects major hyperscalers and AI companies to sustain heavy capital spending. It estimates commitments from Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX could exceed $1.25 trillion in 2027, up 47% from 2026, supporting demand for Delta's power-electronics products.
For Hana, the broker said it had greater confidence in the company's AI revenue opportunity after it completed customer qualifications and expects AI-related revenue to begin in the third quarter of 2026.
A new high-density PCB programme for AI oscilloscope testing equipment is expected to become a major growth driver, while a new HDI PCB programme should support revenue in 2027.
TISCO maintained its Hold rating on KCE, saying further upside could come from capacity expansion and diversification into non-automotive markets, including humanoid robotics.
However, it flagged rising copper prices as a longer-term margin risk and said recent gains had already reflected some of the improvement in its outlook.
The broker identified Hana and Delta as its top picks, citing stronger earnings momentum at Hana and sustained hyperscaler capital spending at Delta.
The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy.Get the bottom line for DELTA plus thousands of other stocks and find your next hidden gem with massive upside.