Top Stories: TAIWAN FIRST TO MARKET

研报英文原文证据摘录

Top Stories: TAIWAN FIRST TO MARKET

Gokul Hariharan AC Asia Pacific Equity Research

(852) 2800-8564 31 July 2026 J P M O R G A N

gokul.hariharan@jpmorgan.com

Risk implications of equity market leverage

The recent TWSE pullback and issues with leveraged ETFs in Korea (link, link) have resulted in rising concerns about potential

asset quality risks at banks and brokers by offering the leverage to retailers into the equity markets. Our analysis suggests that

increasing balances in margin financing and non-restricted purpose lending at brokers and consumer loans at banks are

indeed the red flag, but rising regulatory scrutiny should cool the momentum, while history also indicates that actual losses

should be largely manageable as long as the existing risk management mechanisms are properly implemented. In addition,

leveraged ETFs should have limited implications on market volatility in Taiwan.

Delta Electronics, Inc. (Albert Hung/Gokul Hariharan) (2308 TT, OW)

Capex steps up on data center strength; earnings re-acceleration ahead in 2H26

Key takeaways from Delta’s 2Q26 analyst meeting included: (1) a better-than-seasonal 3Q26 revenue outlook, with some order

backlog exiting 2Q26 amid tight component supply; (2) management expects stable GMs through 2H26, while we are more

constructive on margin upside on a more favorable mix and product price increases; (3) reiterated server power product roll-out

timeline, with initial HVDC products launching in 4Q26; (4) continued pressure in EV and automation businesses on soft end

demand and component constraints; and (5) 30%+ opex growth this year amid ongoing R&D investment in system integration

and elevated logistics fees. We remain constructive on the data center power outlook, while component supply remains the key

overhang.