Delta Electronics (2308 TT): Buy: Short-term margin headwinds, while earnings upcycle unchanged

研报英文原文证据摘录

Delta Electronics (2308 TT): Buy: Short-term margin headwinds, while earnings upcycle unchanged

31 July 2026

Delta Electronics (2308 TT) EquitiesElectronic Equipment &

Instruments

Buy: Short-term margin headwinds, while earnings

upcycle unchanged Taiwan

◆ 2Q26 margins missed expectations on component cost pressure

MAINTAIN BUY

◆ Yet, we still expect an earnings uptrend in 2H26 driven by

stronger revenue momentum TARGET PRICE (TWD) PREVIOUS TARGET (TWD)

2300.00 2900.00◆ Reiterate Buy; cut TP to TWD2,300 (from TWD2,900)

SHARE PRICE (TWD) UPSIDE/DOWNSIDE

2Q26 results miss: Gross margin of 35.6% came in 97bps/79bps below HSBCe/

consensus, largely due to suboptimal product mix and increasing cost pressure 1530.00 +50.3%

driven by power semiconductor shortages. OPM of 16.7% missed HSBCe/consensus (as of 30 Jul 2026)

by 213bps/ 186bps. EPS of TWD9.68 came in slightly better than consensus due to MARKET DATA

no-ops gains and was 6% below HSBCe. Market cap (TWDm) 3,974,241 Free float 71%

Market cap (USDm) 122,813 BBG 2308 TT

Hiccup driven by tightened power semi supply constraint: We observed that 3m ADTV (USDm) 816 RIC 2308.TW

power semi vendors conducted price adjustments twice, in April and July 2026, each FINANCIALS AND RATIOS (TWD)

with c10-35% price hikes across high-voltage and low-voltage MOSFET products. Year to 12/2025a 12/2026e 12/2027e 12/2028e

According to our estimates, power semi content values account for c30-40% of total HSBC EPS 23.14 42.30 58.01 104.08

HSBC EPS (prev) 23.14 41.64 66.41 114.51

server power shelf BOM, thus affecting product margins. We believe that this severe Change (%) 0.0 1.6 -12.7 -9.1

shortage was mainly driven by ramping up of AI servers in 1H26, which is likely to turn Consensus EPS 23.91 41.10 65.82 101.41

PE (x) 66.1 36.2 26.4 14.7