KCE: A historical comparison
KCE Electronics is the fifth company we have analyzed using historical information from the late 1990's and compared it with recent annual results. Keeping with custom, KCE is another long time favourite of Thaistocks.com. Use our search engine to find articles and company visits we have reported on KCE in the past.
The following two parargraphs are taken from KCE's website, and describe the business profile of the company:
"Our core business is the production and distribution of custom, rigid Printed Circuit Boards (PCB), essentially electrically conductive circuits manufactured from an epoxy glass, copper clad laminate, under the KCE trademark. With continual technology development, our growing customer base has required us to produce more complex and sophisticated boards including multilayer PCBs with ever increasing layer counts and circuit densities.
Our products are sold to a wide array of industries such as the computer, commercial, automotive, telecommunications, and satellite communications industries. Besides being Belcore compliant and adhering strictly to QS9000 and IPC standards, KCE has created programs to address each individual customer's specific requirements. "
One important point that is well remembered from the company visit to KCE ten months ago, was the explanation of how the cheaper Chinese competition could not compete with KCE in the more lucrative sectors of the industries. Advancements in technologies in mobile phones, LCD Displays, and automobile braking systems are constantly demanding more sophisticated PCBs with ultra low defect levels (i.e. defect levels in braking systems are very important). KCE has the superior knowledge, technology and capability over its Chinese competitors, thus neutralizing their low cost advantage. The Chinese will continue to dominate the less complicated and unimportant sectors such as pocket calculators.
In the financial analysis below, KCE is still a young company in the early 1990 bullish period, being listed in August of 1988. Even in its infancy, the company was profitable and started to pay a modest dividend in 1992. Investors placed a higher premium on KCE's earnings in the early years compared to now.
KCE is not a high dividend yield stock. The reasons why it is well liked here at Thaistocks.com is its strong competive position in Asia and its growth prospects. However Paul noted a few months ago that higher copper prices on world markets could damped a bit the short term outlook.
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2004F |
2003 |
2002 |
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1993 |
1992 |
1991 |
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Sales (Btmn) |
5,965 |
4,969 |
3,619 |
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1,027 |
529 |
242 |
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EBITDA (Btmn) |
812 |
687 |
571 |
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249 |
198 |
41 |
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Net Profit (Btmn) |
250 |
299 |
148 |
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89 |
11 |
19 |
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Gross Margin (%) |
13.61% |
13.83% |
15.78% |
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24.25% |
37.43% |
16.94% |
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Net Margin (%) |
4.19% |
6.02% |
4.09% |
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8.67% |
2.08% |
7.85% |
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EPS (Bt) |
0.8 |
0.96 |
0.48 |
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4.83 |
1.27 |
2.12 |
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PER (x) |
11.6 |
9.7 |
19.4 |
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26.71 |
68.9 |
45.28 |
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BVPS (Bt) |
7.2 |
6.6 |
5.9 |
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33.19 |
18.19 |
28.31 |
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Price/BV (x) |
1.3 |
1.4 |
1.6 |
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3.89 |
4.81 |
3.39 |
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Dividend yield (%) |
1.60% |
1.60% |
2.10% |
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1.94% |
0.57% |
0 |
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ROA |
11.00% |
14.50% |
8.20% |
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5.60% |
1.10% |
3.00% |
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ROE |
11.60% |
15.50% |
8.60% |
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12.63% |
3.50% |
7.50% |
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Best Regards,
Thaistocks.com
