Brokerage says electronics stocks to grow in second half, DELTA stands out on AI tailwinds

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The research department of Asia Plus Securities has issued an analysis of the electronics sector, noting that the current flooding situation, with northern runoff flowing in, has not yet been reported to have flooded the Hi-Tech Industrial Estate in Ayutthaya Province, where the factories of KCE and HANA are located. However, it is necessary to monitor whether flooding in surrounding areas will affect key transport routes and the production of both companies. The research department views the flooding issue as only a short-term pressure factor that may somewhat affect transportation and employee commuting in early the fourth quarter of 2026, but it will not affect the production base as in 2011. Meanwhile, demand trends for electronics products remain high, so the overall profit picture for the electronics sector in the third quarter of 2026 is expected to grow both QoQ and YoY and to climb to a peak level in the fourth quarter of 2026, driven by DELTA's profit, which is the key driver of the sector's profit. The research department therefore maintains an "overweight" rating on the electronics sector, selecting DELTA as the sector's top pick with a target price of 333 baht, because demand in AI and data centers that continues to rise will benefit DELTA the most. At the same time, it is expected to be affected by flooding less than both HANA and KCE. In addition, DELTA's share price is still a laggard in the sector, having risen 51% year-to-date, still less than HANA and KCE, whose share prices have already risen 219% to 312%.

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