On Tuesday at 10:17 AM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) jumped by 7.28% or THB 6.75 to THB 99.50, with a trading value of THB 1.94 billion.
Finansia Syrus Securities (FSS) stated that DELTA reported a better-than-expected 2Q24 earnings, with a net profit of THB 6.57 billion, an increase of 52% QoQ and 41% YoY. The company recorded a normal profit of THB 5.93 billion, an increase of 56% QoQ and 34% YoY, reaching a new record high and exceeding the analyst and market expectations of 18% and 24%, respectively.
DELTA saw a 6.7% QoQ and 11% YoY increase in revenue in USD, driven by its electric vehicle (EV) clients in Europe, data center clients, and clients in India, while revenue from the AI business showed substantial growth.
FSS stated that it would revise up DELTA’s 2024-25 earnings forecast by 15% and 27%. The analyst gave a ‘speculative-buy’ recommendation for DELTA and set a target price in 2025 of THB 100 per share.
Other electronic stocks, such as KCE and HANA, are also expected to announce robust second-quarter 2024 earnings. FSS set a target price of THB 50 per share for both companies.
Kasikorn Securities (KS) gave DELTA a base price of THB 120 per share, as the company’s 2Q24 earnings beat its projections by 20%. DELTA reported robust sales revenue, improved gross profit margin (GPM), and recorded an extra profit of THB 252 million from contract revocation compensation. The analyst expected DELTA’s profit in 2H24 to be driven by growth in the data center business and the launch of new AI chips from its clients.
