PDF 原檔：報告_花旗_台達電2308_20260722_original.pdf
圖片清單（已驗證 2026-07-23）
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報告_花旗_台達電2308_20260722_002.png |
139KB | 真資料圖 | 左圖 Figure 4：台達電遠期本益比帶圖（10x/25x/40x/55x），股價線近期於 40x 附近；右圖 Figure 5：遠期股價淨值比帶圖（2x/6x/10x/14x）疊加遠期 ROE 虛線，2026 年 ROE 快速攀升至約 36-40% |
報告_花旗_台達電2308_20260722_003.png |
176KB | 真資料圖 | Bull/Bear 情境圖：現價 NT$1,880（2026-07-22），Bull NT$2,700（+44%，目標倍數 45x）、Base NT$2,280（+21%，40x，2026-27E 營收成長 42-43%、OPM 17.5-20.3%）、Bear NT$1,500（-20%，25x，營收僅成長 10%、OPM 14.0%） |
報告_花旗_台達電2308_20260722_004.png |
267KB | 真資料圖 | 台達電 Goldman/Citi 評等與目標價歷史表（2023-08 至 2026-04，13 筆紀錄，目標價自 NT$435 逐步上調至 NT$2,480）與 Short-Term View/Catalyst Watch 紀錄表（14 筆，2024-07 至 2026-02） |
001（19KB）<40KB，依規則預設非必要逐張 Read 之候選（推測為股價走勢小圖）。
原始內容
(RIC: 2300.1W, BB: 2300 11)
TWD
2,500
2,250
2,000
1,750
1,500
1,250
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Prepared for Kevin Lu
22 Jul 2026 05:56:46 ET │ 15 pages
Sep
Dec
Mar
Jun
Delta Electronics (2308.TW)
Near-term Uncertainties Priced in; Outlook Intact
CITI'S TAKE
Delta's share price has corrected more than 20% since recent peak due to market volatility and market concern on slow 800V deployment. While we believe near-term momentum may be impacted by new projects ramping schedule and tight component supply, the structural power solution upgrade trend remains intact. Delta will host its 2Q26 analyst meet on July 30. Maintain Buy as we believe near-term uncertainties are priced in.
800V delayed? Power rack value upgrade trend remains intact -While Nvidia's Vera Rubin NVL72 platform does not mandate an 800V power architecture, we continue to view 800V DC as the long-term trend for AI data center power delivery. Nvidia's rack power design will start transforming the traditional PSU sidecar from a simple AC/DC power shelf into an intelligent rack-level power management platform. The most significant additions include an integrated Battery Backup Unit (BBU), bidirectional DC/DC converters, power smoothing circuitry, advanced digital controllers, and future-ready 800V HVDC interfaces . New spec enables the sidecar to buffer rapid power fluctuations, reduce stress on the utility grid, coordinate multiple power shelves, and improve overall power efficiency. As rack power goes up beyond 200kW and eventually toward 500kW+ in future AI systems, higher-voltage distribution becomes increasingly important. In other words, the timing of adoption may be more gradual, but the structural drivers remain intact.
HDVC ramp up in 2H26 on track -For Delta, the high-voltage DC infrastructure trend remains unchanged. Delta's leadership in high-efficiency power conversion, power shelves, busbars, solid-state transformers, and the emerging high-voltage 'sidecar' architecture positions the company to benefit as hyperscalers progressively migrate towards 800V DC. We therefore expect 800V-related content per rack to increase over time, with the penetration likely to reach 20% next year, supporting a multi-year upgrade cycle rather than a one-generation adoption event.
Potential near-term GM pressure on rising component cost and new project ramp up -Given more complex power system design and rising component cost such as thermal, PMIC, etc., we see potential near-term GM pressure in 2Q & 3Q, yet the structural content value upgrade and better product mix on AI should support Delta's GM recovery in 2027. We lower 2026/27/28E earnings estimates 8%/7%/11%, leading to revised TP of NT$2,280 (40x 2027 EPS retained). Maintain Buy.
Earnings Summary
| Year to 31Dec | Net Profit (NT$M) | DilutedEPS (NT$) | EPSgrowth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 35,229 | 13.56 | 5.5 | 138.6 | 16.9 | 13.1 | 0.4 |
| 2025A | 60,108 | 23.14 | 70.6 | 81.2 | 14.2 | 19 | 0.6 |
| 2026E | 93,269 | 35.91 | 55.2 | 52.4 | 12.9 | 25.8 | 1 |
| 2027E | 148,577 | 57.2 | 59.3 | 32.9 | 9.5 | 33.3 | 1.6 |
| 2028E | 235,153 | 90.53 | 58.3 | 20.8 | 6.7 | 38 | 2.5 |
Source: Powered by dataCentral
n Buy
Price (22 Jul 26 13:30)
NT$1,880.00
Target price
NT$2,280.00↓
from NT$2,480.00
Expected share price return
21.3%
Expected dividend yield
1.0%
Expected total return
22.3%
Market Cap
NT$4,883,381M US$150,997M
Price Performance (RIC: 2308.TW, BB: 2308 TT)
Laura (Chia Yi) Chen AC
+886-2-8726-9090
laura.cy.chen@citi.com
Michael Hung +886-2-8726-9092 michael.hung@citi.com
Jack Chen +886-2-8726-9091 jack1.chen@citi.com
Nicholas Lai +886-2-8726-9093 nicholas.lai@citi.com
See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.
Prepared for Kevin Lu
| 2308.TW: Fiscalyearend31-Dec | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy | Price: NT$1,880.00; TP: NT$2,280.00; Market Cap: NT$4,883,381m; Recomm:Buy |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit&Loss(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | Valuation ratios | 2024 | 2025 | 2026E | 2027E | 2028E |
| Sales revenue | 421,148 | 554,885 | 796,248 | 1,131,647 | 1,600,472 | PE(x) | na | 81.2 | 52.4 | 32.9 | 20.8 |
| Cost of sales | -284,567 | -364,729 | -504,349 | -686,853 | -932,711 | PB(x) | 16.9 | 14.2 | 12.9 | 9.5 | 6.7 |
| Gross profit | 136,580 | 190,157 | 291,899 | 444,794 | 667,761 | EV/EBITDA(x) | 64.7 | 41.8 | 27.0 | 17.9 | 11.5 |
| Gross Margin (%) | 32.4 | 34.3 | 36.7 | 39.3 | 41.7 | FCFyield (%) | 0.8 | 1.1 | 1.9 | 2.9 | 5.7 |
| EBITDA(Adj) | 72,668 | 111,771 | 172,532 | 259,036 | 397,047 | Dividend yield (%) | 0.4 | 0.6 | 1.0 | 1.6 | 2.5 |
| EBITDAMargin(Adj) (%) | 17.3 | 20.1 | 21.7 | 22.9 | 24.8 | Payout ratio (%) | 52 | 52 | 52 | 52 | 52 |
| Depreciation | -25,016 | -27,839 | -33,064 | -28,951 | -32,651 | ROE(%) | 13.1 | 19.0 | 25.8 | 33.3 | 38.0 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 47,652 | 83,932 | 139,467 | 230,084 | 364,396 | EBITDA | 72,668 | 111,771 | 172,532 | 259,036 | 397,047 |
| EBIT Margin (Adj) (%) | 11.3 | 15.1 | 17.5 | 20.3 | 22.8 | Working capital | 4,363 | 732 | -53,127 | -74,114 | -95,061 |
| Net interest | 1,859 | 1,501 | 1,134 | 481 | 1,430 | Other | -4,136 | -14,029 | 14,211 | -1,500 | 6,574 |
| Associates | 365 | 493 | 235 | 246 | 254 | Operating cashflow | 72,895 | 98,474 | 133,616 | 183,421 | 308,560 |
| Non-Op/Except/Other Adj | 1,439 | 1,940 | 5,710 | 5,698 | 8,035 | Capex | -33,485 | -46,091 | -40,750 | -41,000 | -32,000 |
| Pre-tax profit | 51,316 | 87,866 | 146,547 | 236,510 | 374,115 | Net acq/disposals | -6,571 | -6,528 | 0 | 0 | 0 |
| Tax | -10,925 | -19,930 | -33,813 | -54,397 | -86,046 | Other | -304 | -595 | -1,386 | -246 | -254 |
| Extraord./Min.Int./Pref.div. | -5,163 | -7,828 | -19,465 | -33,535 | -52,915 | Investing cashflow | -40,360 | -53,214 | -42,136 | -41,246 | -32,254 |
| Reported net profit | 35,229 | 60,108 | 93,269 | 148,577 | 235,153 | Dividends paid | -18,696 | -20,313 | -31,024 | -48,140 | -76,686 |
| Net Margin (%) | 8.4 | 10.8 | 11.7 | 13.1 | 14.7 | Financing cashflow | -11,118 | -9,401 | -96,890 | -81,675 | -129,602 |
| CoreNPAT | 35,229 | 60,108 | 93,269 | 148,577 | 235,153 | Net change in cash | 30,003 | 33,713 | -5,410 | 60,500 | 146,704 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | 39,410 | 52,383 | 92,866 | 142,421 | 276,560 |
| Reported EPS($) | 13.56 | 23.14 | 35.91 | 57.20 | 90.53 | ||||||
| Core EPS($) | 13.56 | 23.14 | 35.91 | 57.20 | 90.53 | ||||||
| DPS($) | 7.00 | 11.94 | 18.53 | 29.52 | 46.73 | ||||||
| CFPS($) | 28.06 | 37.91 | 51.44 | 70.61 | 118.79 | ||||||
| FCFPS($) | 15.17 | 20.17 | 35.75 | 54.83 | 106.47 | ||||||
| BVPS($) | 111.57 | 132.23 | 145.82 | 197.39 | 278.77 | ||||||
| Wtdavgordshares(m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Wtdavgdiluted shares (m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Growthrates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | 5.0 | 31.8 | 43.5 | 42.1 | 41.4 | ||||||
| EBIT (Adj) (%) | 16.4 | 76.1 | 66.2 | 65.0 | 58.4 | ||||||
| CoreNPAT(%) | 5.5 | 70.6 | 55.2 | 59.3 | 58.3 | ||||||
| CoreEPS(%) | 5.5 | 70.6 | 55.2 | 59.3 | 58.3 | ||||||
| BalanceSheet(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash&cashequiv. | 121,793 | 155,113 | 108,758 | 122,787 | 186,590 | ||||||
| Accounts receivables | 89,921 | 121,717 | 177,021 | 258,984 | 381,979 | ||||||
| Inventory | 89,706 | 108,208 | 182,228 | 255,436 | 376,746 | ||||||
| Net fixed &other tangibles | 115,710 | 142,040 | 149,726 | 161,774 | 161,123 | ||||||
| Goodwill &intangibles | 0 | 0 | 0 | 0 | 0 | ||||||
| Financial &other assets | 114,768 | 112,542 | 118,975 | 124,951 | 135,425 | ||||||
| Total assets | 531,898 | 639,619 | 736,708 | 923,932 | 1,241,864 | ||||||
| Accounts payable | 69,223 | 94,452 | 129,704 | 164,290 | 230,632 | ||||||
| Short-term debt | 8,121 | 17,325 | 17,325 | 17,325 | 17,325 | ||||||
| Long-term debt | 32,209 | 21,143 | 21,143 | 21,143 | 21,143 | ||||||
| Provisions &other liab | 142,779 | 181,310 | 227,303 | 279,504 | 372,626 | ||||||
| Total liabilities | 252,332 | 314,230 | 395,475 | 482,262 | 641,726 | ||||||
| Shareholders' equity | 289,809 | 343,460 | 378,769 | 512,742 | 724,124 | ||||||
| Minority interests | -10,243 | -18,071 | -37,536 | -71,071 | -123,986 | ||||||
| Total equity | 279,565 | 325,389 -116,645 | 341,233 | 441,671 | 600,137 | ||||||
| Net debt (Adj) | -81,463 | -70,291 | -84,319 | -148,122 | |||||||
| Net debt to equity (Adj) (%) | -29.1 | -35.8 | -20.6 | -19.1 | -24.7 |
Prepared for Kevin Lu
Figure 1. Power rack spec by AI GPU platform
| Component | GB200/GB300Sidecar | VeraRubinSidecar |
|---|---|---|
| AC/DCPSUModules | ✓ | ✓ (higher density) |
| PFC + LLC | ✓ | ✓ |
| Cooling/Fans | ✓ | ✓ (larger) |
| Digital Controller | MCU | High-performanceDSP/FPGA |
| BMC/PMBus | ✓ | Enhanced |
| BBU (Battery Backup Unit) | External or optional | Integrated |
| Bidirectional DC/DC | No | Yes |
| Power Smoothing Circuit | No | Yes |
| Current Sharing Controller | Limited | Advanced |
| HVDCInterface (800V-ready) | No | Yes |
| Protection &Monitoring | Standard | Enhanced |
| ©2026CitigroupInc. Noredistribution without Citigroup's written permission. | ©2026CitigroupInc. Noredistribution without Citigroup's written permission. | ©2026CitigroupInc. Noredistribution without Citigroup's written permission. |
Figure 2. Power & liquid cooling architecture by AI GPU platform
| Generation | Approx.RackPower Direction | CoolingMethod | PowerArchitecture |
|---|---|---|---|
| Hopper | 40-60kW | Air / Liquid hybrid | Traditional ACPSU |
| Blackwell GB200 | 120-140kW | Direct liquid cooling | Rack power shelves / busbar emerging |
| GB300/Blackwell Ultra | 140-180kW | Full rack liquid cooling | Higher-density power shelves |
| Rubin NVL72 | 180-220kW+ | Advanced rack liquid cooling | 54V busbar near practical limits |
| Rubin Ultra | 300-600kW (TBD) | Pod / Facility liquid loop | 800V DCtransition increasing necessary |
| ©2026CitigroupInc. Noredistribution without Citigroup's written permission. Source: CompanyReports, Citi Research Estimates | ©2026CitigroupInc. Noredistribution without Citigroup's written permission. Source: CompanyReports, Citi Research Estimates |
Prepared for Kevin Lu
Figure 3. Delta - Earnings estimate revisions
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Chg | New | Old | Chg | New | Old | Chg |
| Revenue | 796,248 | 829,612 | -4% | 1,131,647 | 1,183,234 | -4% | 1,600,472 | 1,688,792 | -5% |
| Gross profit | 291,899 | 310,111 | -6% | 444,794 | 470,886 | -6% | 667,761 | 728,660 | -8% |
| OPEX | 152,431 | 157,291 | -3% | 214,710 | 222,677 | -4% | 303,365 | 318,370 | -5% |
| Operating profit | 139,467 | 152,820 | -9% | 230,084 | 248,209 | -7% | 364,396 | 410,290 | -11% |
| Pre-tax profit | 146,547 | 160,049 | -8% | 236,510 | 254,960 | -7% | 374,115 | 420,636 | -11% |
| Netprofit | 93,269 | 101,744 | -8% | 148,577 | 160,195 | -7% | 235,153 | 264,357 | -11% |
| EPS(NT$) | 35.91 | 39.17 | -8% | 57.20 | 61.67 | -7% | 90.53 | 101.77 | -11% |
| Ratio | New | Old | diff | New | Old | diff | New | Old | diff |
| Gross margin (%) | 36.7 | 37.4 | -0.7 | 39.3 | 39.8 | -0.5 | 41.7 | 43.1 | -1.4 |
| OPEXtoSalesratio(%) | 19.1 | 19.0 | 0.2 | 19.0 | 18.8 | 0.2 | 19.0 | 18.9 | 0.1 |
| Operating margin (%) | 17.5 | 18.4 | -0.9 | 20.3 | 21.0 | -0.6 | 22.8 | 24.3 | -1.5 |
| Netmargin (%) | 11.7 | 12.3 | -0.6 | 13.1 | 13.5 | -0.4 | 14.7 | 15.7 | -1.0 |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research Estimates
Prepared for Kevin Lu
Figure 6. Delta - Quarterly earnings forecasts
| NT$mn | 1Q26 | 2Q26E | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Netsales | 159,353 | 183,269 | 216,079 | 237,547 | 227,034 | 265,201 | 315,681 | 323,730 | 554,885 | 796,248 | 1,131,647 | 1,600,472 |
| Gross profit | 58,961 | 64,509 | 78,862 | 89,567 | 87,173 | 104,486 | 124,411 | 128,724 | 190,157 | 291,899 | 444,794 | 667,761 |
| OPEX | 30,544 | 35,308 | 41,457 | 45,123 | 43,420 | 50,553 | 59,624 | 61,113 | 106,224 | 152,431 | 214,710 | 303,365 |
| Operating profit | 28,417 | 29,201 | 37,406 | 44,444 | 43,752 | 53,933 | 64,788 | 67,611 | 83,932 | 139,467 | 230,084 | 364,396 |
| TotalNon-OP | 2,676 | 1,826 | 1,235 | 1,343 | 1,549 | 1,713 | 1,547 | 1,617 | 3,934 | 7,079 | 6,426 | 9,719 |
| Pre-tax profit | 31,093 | 31,027 | 38,640 | 45,786 | 45,302 | 55,646 | 66,334 | 69,228 | 87,866 | 146,547 | 236,510 | 374,115 |
| Income tax | 7,258 | 7,136 | 8,887 | 10,531 | 10,419 | 12,799 | 15,257 | 15,923 | 19,930 | 33,813 | 54,397 | 86,046 |
| Net profit | 20,556 | 19,352 | 24,100 | 29,262 | 28,255 | 34,706 | 41,373 | 44,244 | 60,108 | 93,269 | 148,577 | 235,153 |
| EPS (NT$) | 7.91 | 7.45 | 9.28 | 11.27 | 10.88 | 13.36 | 15.93 | 17.03 | 23.14 | 35.91 | 57.20 | 90.53 |
| Product Mix (%) | ||||||||||||
| Power Electronics | 59% | 59% | 59% | 56% | 60% | 61% | 60% | 61% | 57% | 58% | 61% | 66% |
| Infrastructure | 32% | 32% | 33% | 36% | 33% | 33% | 34% | 34% | 33% | 34% | 33% | 30% |
| Automation | 9% | 9% | 8% | 8% | 7% | 6% | 6% | 5% | 10% | 8% | 6% | 4% |
| Others | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Margins (%) | ||||||||||||
| Gross profit | 37.0 | 35.2 | 36.5 | 37.7 | 38.4 | 39.4 | 39.4 | 39.8 | 34.3 | 36.7 | 39.3 | 41.7 |
| OPEXtoSalesRatio | 19.2 | 19.3 | 19.2 | 19.0 | 19.1 | 19.1 | 18.9 | 18.9 | 19.1 | 19.1 | 19.0 | 19.0 |
| Operating profit | 17.8 | 15.9 | 17.3 | 18.7 | 19.3 | 20.3 | 20.5 | 20.9 | 15.1 | 17.5 | 20.3 | 22.8 |
| Pre-tax profit | 19.5 | 16.9 | 17.9 | 19.3 | 20.0 | 21.0 | 21.0 | 21.4 | 15.8 | 18.4 | 20.9 | 23.4 |
| Netprofit | 12.9 | 10.6 | 11.2 | 12.3 | 12.4 | 13.1 | 13.1 | 13.7 | 10.8 | 11.7 | 13.1 | 14.7 |
| Y/Y(%) | ||||||||||||
| Netsales | 34.0 | 47.8 | 43.7 | 47.0 | 42.5 | 44.7 | 46.1 | 36.3 | 31.8 | 43.5 | 42.1 | 41.4 |
| Gross profit | 56.0 | 46.4 | 50.5 | 60.2 | 47.8 | 62.0 | 57.8 | 43.7 | 39.2 | 53.5 | 52.4 | 50.1 |
| OPEX | 28.6 | 39.1 | 50.2 | 53.0 | 42.2 | 43.2 | 43.8 | 35.4 | 19.4 | 43.5 | 40.9 | 41.3 |
| Operating profit | 102.5 | 56.4 | 50.8 | 68.2 | 54.0 | 84.7 | 73.2 | 52.1 | 76.1 | 66.2 | 65.0 | 58.4 |
| Pre-tax profit | 98.5 | 58.5 | 43.2 | 78.5 | 45.7 | 79.3 | 71.7 | 51.2 | 71.2 | 66.8 | 61.4 | 58.2 |
| Netprofit | 100.9 | 38.7 | 29.5 | 68.9 | 37.5 | 79.3 | 71.7 | 51.2 | 70.6 | 55.2 | 59.3 | 58.3 |
| Q/Q(%) | ||||||||||||
| Netsales | (1.4) | 15.0 | 17.9 | 9.9 | (4.4) | 16.8 | 19.0 | 2.5 | ||||
| Gross profit | 5.5 | 9.4 | 22.3 | 13.6 | (2.7) | 19.9 | 19.1 | 3.5 | ||||
| Operating profit | 7.6 | 2.8 | 28.1 | 18.8 | (1.6) | 23.3 | 20.1 | 4.4 | ||||
| Pre-tax profit | 21.2 | (0.2) | 24.5 | 18.5 | (1.1) | 22.8 | 19.2 | 4.4 | ||||
| Netprofit | 18.7 | (5.9) | 24.5 | 21.4 | (3.4) | 22.8 | 19.2 | 6.9 |
NT$
2,700
2,250
1,800
1,350
900
450
Jul 25
Prepared for Kevin Lu
4 < 44% Upside.
NT$ 2,280.00
A 21% Upside
NT$ 1,500.00
Bull/Bear: Delta Electronics (2308.TW)
v 20% Downside
Prepared for Kevin Lu
Delta Electronics
Company description
Delta was established in 1975 and is the world's leading computer switching power supply manufacturer. Its business is divided into: 1) Power Electronics (59% of 2022 revenue), including Switching Power Supply, Components, Display and EV Solution; 2) Infrastructure (27% of revenue), including Wind power, Telecom power, UPS, EV Infrastructure, Networking; 3) Automation (14% of revenue), including Industrial Automation (IA), Building Automation; and 4) Others (<1% of revenue).
Investment strategy
We rate Delta Electronics shares as Buy due to its strong execution and the ability to expand margin through favorable product mix shift to AI power and thermal solutions. We believe EV business slowdown is in the price, and we expect margins to improve driven by AI solution spec upgrades and expanding business scale. Delta is now positioning itself as an infrastructurer enabler rather than a pure component supplier, which deepens its key position in the AI supply chain.
Valuation
Our target price for Delta Electronics of NT$2,280 is based on 40x 2027E EPS estimate. Our target multiple is set at the higher end of its trading range since 2023, which we believe is warranted by Delta's strong earnings growth and better product mix prospects. We also believe the company's leading industry position, long product development cycle, and strong engagement with customers should translate into high orders/earnings visibility.
Risks
Key downside risks that could impede the stock from reaching our target price are: 1) lower contribution from non-PC businesses; 2) products in the new businesses (LED lighting, electric vehicle, and Voice) growing more slowly than expected; and 3) PC power supply losing market share.
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