Delta Electronics, Inc.: Key takeaways from NDR meeting

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

11 August 2026

Delta Electronics, Inc.

Key takeaways from NDR meeting

Overweight

2308.TW, 2308 TT

Price (10 Aug 26):NT$1,815.00

Price Target (Jun-27):NT$2,500.00

We hosted Delta’s senior IR management, Rodney Liu, during a Non-deal

Roadshow (NDR) call on 7 Aug (Fri). Management expects above-seasonal

revenue momentum in 2H26 with an initial HVDC revenue contribution. The

company is targeting a more meaningful HVDC contribution in 2027, which

should help sustain Delta’s growth runway. On margins, management guided to a

more stable GM trajectory into 2H26, citing higher component costs offsetting

product mix improvement. We see upside to this conservative stance, as Delta

plans to raise its product prices in Sep/Oct. OPM could also benefit from the higher

scale. Overall, we remain constructive on Delta on (1) accelerating earnings

momentum into 2H26 and (2) an intact data center content expansion story over the

medium to longer term. The stock has regained momentum post the 2Q26 print,

which we view as a clearing event. Stay OW. Key takeaways from the discussion:

Above seasonal 3Q26 revenue, followed by another double-digit QoQ

growth in 4Q: Management expects 3Q26 revenue to grow double digits QoQ,

better than the typical seasonality of HSD% QoQ. The company attributes the

above seasonal trend to a larger contribution from server power supply in 2H.

With an acceleration in both production and shipments of power supply

products, management expects server power supply revenue to reach >100%

YoY growth in 2H26 (JPMe at +36%/34% QoQ in 3Q and 4Q) and become the

key growth driver. Looking ahead, Delta’s 4Q26 revenue could again grow

significantly QoQ by double-digits on the ramp of Vera Rubin products and

initial shipment of HVDC power rack.

Product price hikes and higher scale to mitigate cost inflation: Despite

component shortages and input-cost pressures, Delta expects gross margin to

hold steady in 3Q and trend higher in 4Q, due to a more favorable product mix

and improving production scale. Management views the cost inflation as

manageable, supported by ongoing product price pass-through to customers

…