Delta Electronics (Thailand) (DELTA.BK): 2Q26 Results Dragged by Higher Input Costs; Expecting Stronger 2H26

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Delta Electronics (Thailand) (DELTA.BK): 2Q26 Results Dragged by Higher Input Costs; Expecting Stronger 2H26

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26 Jul 2026 10:54:31 ET │ 12 pages

Delta Electronics (Thailand) (DELTA.BK)

2Q26 Results Dragged by Higher Input Costs; Expecting Stronger 2H26

CITI'S TAKE

Buy Delta Thailand's 2Q26 results saw profits decline 33% QoQ despite +6%

QoQ revenue growth, on poorer margins from higher raw material costs Price (24 Jul 26 17:00) Bt307.00

leading to constrained product execution and an unfavourable product Target price Bt367.00

mix. YoY, revenues and profits were still growing healthily (+47% and Expected share price return 19.5%

+31%, respectively), underpinned by strong AI-led demand. Nonetheless, Expected dividend yield 0.3%

we anticipate a stronger 2H26, with margins expected to improve on Expected total return 19.8%

strengthened supply chain management, alternative sourcing

Market Cap Bt3,829,462M commitments, and deferred delivery recognition and continued ramp-up

US$113,617M of customer programs. Overall, despite the setback in 2Q26, we see

underlying AI structural demand as intact. Maintain Buy, TP Bt367.

Sequentially weaker earnings due to margins decline — Sequentially, the group's Steven ChanAC

reported profit dropped 33% QoQ despite +6% QoQ revenue growth, on margin +60-3-2383-2595

compression (gross margin contracted to 27% from 32%). The compression reflected steven.chan@citi.com

tighter raw material supply amid AI-driven demand imbalances, driving higher input

costs and constraining product execution. Additionally, the supply-constrained

backdrop drove a less favourable product mix, as production priorities shifted

toward materials availability — resulting in a higher contribution from secondary