Delta Electronics (Thailand): The world still needs DELTA; Upgrade to Buy

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Delta Electronics (Thailand)

The world still needs DELTA; Upgrade to

Buy

Rating Change : BUY | PO: 340.00 THB

| Price: 278.00 THB

Upgrade to B uy; PO raised to Bt340 (from Bt285)

03 August 2026

We upgrade DELTA to B uy from U nderperform. Following the sharp share -price

correction, we believe near -term margin and execution risks are largely priced in. Despite

our more conservative margin assumptions, we expect DELTA will deliver strong pre-ex

EPS growth of 60% /32% in 26E/27E , while its structural exposure to the next AI cycle is

not yet fully reflected in the share price in our view . Rolling our valuation forward to

2027E at an unchanged 87x P/E raises our PO to Bt340 from Bt285, creating an

attractive entry point.

Equity

Key Changes

(Bt)

Previous Current

Inv. Opinion

C-3-7

Inv. Rating

UNDERPERFORM

BUY

Price Obj.

285.00

340.00

AI world needs DELTA (more than it did)

2026E EPS

3.29

2.97

AI rack power requirements are expected to rise from around 150 –200kW currently

toward 600kW –1MW and above. This should substantially increase demand for power

conversion, power management and liquid cooling, allowing DELTA to capture both

higher content per rack and a richer product mix.

2027E EPS

4.41

3.93

2028E EPS

5.14

4.81

C AP E X is expanding beyond hyperscaler

2026E EBITDA (m)

53,987.0 49,752.9

2027E EBITDA (m)

70,186.1 63,812.5

2028E EBITDA (m)

81,032.7 76,860.8

s

AI infrastructure investment should remain supported by two complementary drivers.

Hyperscalers continue to raise AI CAPEX as AI compute demand accelerates, while

Chinese open -weight models are expanding the addressable market by enabling a

broader range of enterprises, cloud providers and governments to deploy AI

infrastructure.

Suppapong Iemkongaek, CFA, CMT

Research Analyst

Kiatnakin Phatra Securities

The wait is over

Stock Data

We believe the worst of operational disruption has passed . We cut FY26 /27E earnings by

10%/11% after lowering our GPM assumptions to 30.5%/31.2%. However, order

visibility remains solid, with no deterioration in backlog. The EU supply disruption has

been resolved, while AI component availability should improve over the next 3-6 months.

…