Shares in electronic component maker KCE Electronics Pcl climbed to their highest in more than a year amid optimism about second-quarter results and a strong earnings recovery after last year's flooding.
KCE shares were trading up 0.66 percent at 7.65 baht, having hit 7.70 baht, the highest since June 2011. The stock has risen 60 percent so far this year, outperforming a 16 percent gain of the broader stock market.
Bualuang Securities raised its price target on the stock to 8.05 baht from 7 baht, while keeping a 'buy' rating.
"The second-quarter core operation should bounce into black ink and the prospects for the second half are even better. Further ahead, we expect superb 2013 numbers with the full recovery of KCE Tech and a possible takeover deal," it said in a report.
"There would be scope for upside from the possible acquisition of a chemical recycling firm. The acquisition would give KCE some implied natural hedging of its copper exposure and expand its overall net margin by 0.5-1 percent," it said.
Thailand's widespread flooding late last year severely affected industrial estates in central provinces, including KCE's plant in the central province of Ayutthaya. The company reported weak sales in the January-March quarter because its flood hit plant was partially operational.
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1503 (0803 GMT)
(Reporting by Viparat Jantraprap in Bangkok; email@example.com)