TISCO Securities upgraded its overall rating for Thailand's electronic components sector to "overweight" from "neutral", saying the combination of a stronger outlook for the second half of 2026, improved visibility around data-centre capital spending and a marked recent underperformance had captured a large portion of market concerns.
Company-level moves
Among individual names, TISCO raised Delta Electronics Thailand to "buy" from "hold" and lifted its price target to 282 baht from 268 baht. Hana Microelectronics was also promoted to Buy from Hold, with a target increase to 61.50 baht from 50.50 baht. KCE Electronics kept a Hold recommendation, although its target price was increased to 60.25 baht from 55.50 baht.
Sector backdrop and valuation
The broker noted the sector had lagged the broader SET index by roughly 33% in the recent period. That underperformance, coupled with what TISCO describes as a stronger 2H26 outlook and data-centre capital spending plans for 2027 that came in ahead of expectations, underpinned the decision to move to an overweight stance.
TISCO also updated its valuation framework by rolling it forward to 2027 and applying 2028 earnings estimates in its analysis.
Delta Electronics Thailand
TISCO said Delta's recent 37% fall from its June 2026 peak appears to have priced in a range of potential negatives - including raw-material shortages, uncertainty regarding royalty fees and a bond issuance by its parent company, Delta Taiwan. The broker anticipates a gradual improvement in raw-material availability and expects price adjustments to take hold in early 2027, which should provide additional support to the business while demand remains robust.
On demand dynamics, TISCO expects heavy capital spending to continue among major hyperscalers and AI-focused companies. It estimated that commitments from Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX could top $1.25 trillion in 2027, a 47% increase from 2026, supporting demand for Delta's power-electronics products.
Hana Microelectronics
TISCO said it has increased conviction in Hana's AI-related revenue potential now that customer qualifications have been completed. The broker expects AI-related revenue to start in the third quarter of 2026. It also highlighted a new high-density printed circuit board programme for AI oscilloscope testing equipment that could become a significant growth driver, and noted an HDI PCB programme expected to support revenue during 2027.
KCE Electronics
KCE retained a Hold rating in TISCO's view. The broker indicated that further upside for KCE could come from additional capacity expansion and diversification beyond automotive applications into areas such as humanoid robotics. At the same time, TISCO cautioned that rising copper prices pose a longer-term margin risk and said that recent share-price gains already reflect some of the improved outlook.
Top picks and outlook
TISCO singled out Hana and Delta as its preferred names in the sector, citing Hana's stronger earnings momentum and Delta's exposure to sustained hyperscaler capital spending. The broker's sector upgrade reflects the combination of recent price weakness, improving demand signals for data-centre related products and its updated valuation horizon.