PDF 原檔：報告_Citi_台達電2308_20261029_original.pdf
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| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Citi_台達電2308_20261029_001.png |
17,424B | 真資料圖 | 股價走勢折線圖（2308 股價約 750-2,500，橫軸 Dec-Sep），無相對大盤線 |
報告_Citi_台達電2308_20261029_002.png |
88,424B | 真資料圖 | Figure 3／4：Forward P/E band（10x／25x／40x／55x 四條倍數線，橫軸 2020-2026）與 Forward P/B band（2x／6x／10x／14x，右軸 Forward ROE 約 14%→28%）；股價（粗藍線）2026 年自高點約 2,400 回落至約 1,500 |
報告_Citi_台達電2308_20261029_003.png |
100,885B | 真資料圖 | Bull／Base／Bear 情境圖：Bull NT$1,950（+32%）、Base NT$1,715（+16%）、Bear NT$1,220（-18%），起點 2026-10-29 股價 NT$1,480，橫軸 Oct 25–Oct 27 |
報告_Citi_台達電2308_20261029_004.png |
255,385B | 真資料圖 | Citi 評等與目標價歷史（Laura Chen）：2023-11 至 2026-07 各次目標價調整表（最新 2026-07-22 TP 2,280、收盤 1,880）與 Short-Term View／Catalyst Watch 紀錄表；無新資訊價值，僅作歷史查核 |
全數 4 張逐張檢視（<40KB 者以拼圖逐張確認），無裝飾／文字卡。訂閱者浮水印（Prepared for 讀者姓名）已自文字層遮蔽（Citi），分析師姓名與聯絡信箱保留。
原始內容
citi
29 Oct 2026 11:21:12 ET │ 15 pages
Delta Electronics (2308.TW)
Inventory provisions weighed on 3Q26 margins; Sequential recovery expected in 4Q26
CITI'S TAKE
Delta's 3Q26 earnings were below market expectations due to component shortages and delays in AI data center deployment. GM down 1.6ppts QoQ to 34.1%, reflecting inventory provisions equivalent to 1.7% of revenue, while OPM remained resilient at 16.6% on operating leverage. AI-related businesses now account for approximately 50% of revenue. Management attributed elevated inventory to mismatches between component availability and customer shipment schedules. As shipments resume and inventories normalize, Delta expects revenue to grow sequentially in 4Q26, with GM unlikely to deteriorate further. Despite near-term supply chain volatility, we see the structural power content value upward trend intact. Maintaining Buy with NT$1,715.
Higher power density to drive content growth - The migration toward higherpower server architectures requires increasingly sophisticated power conversion, distribution, and thermal management solutions, supporting higher power content per rack. Management views Delta favorably to capture these opportunities. Nevertheless, rapid product transitions and uneven component availability could create temporary inventory mismatches, particularly as suppliers prioritize highermargin products at the expense of legacy components. In our view, given higher density GPU/ASIC rack shipment ready in bigger volume into next year, we expect a sequential growth outlook ahead.
HVDC transition ongoing, but big volume ramp could be more 2H27 onward - Delta already began shipping ±400V HVDC solutions in 3Q26. Management expects HVDC adoption to expand significantly over time, given its advantages in power conversion efficiency, distribution losses, and overall energy management. However, shortages of qualified electricians, particularly in the US, could delay installations. We expect more penetration of 800V HVDC with Rubin Ultra NVL576 ramping into late 2027.
Lower TP, maintaining Buy on long term growth trend - Lower earnings projection on power shortages, labor constraints, financing conditions, and regulatory uncertainties could create quarterly shipment volatility, but we believe multiyear AI infrastructure growth cycle remains intact. We maintain Buy with TP NT$1,715 (based on lower PER of 35x of 2027 EPS, from 40x previously).
Earnings Summary
| Year to 31 Dec | Net Profit (NT$M) | Diluted EPS (NT$) | EPS growth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 35,229 | 13.56 | 5.5 | 109.1 | 13.3 | 13.1 | 0.5 |
| 2025A | 60,108 | 23.14 | 70.6 | 64.0 | 11.2 | 19.0 | 0.8 |
| 2026E | 93,847 | 36.13 | 56.1 | 41.0 | 8.7 | 24.0 | 1.3 |
| 2027E | 126,570 | 48.73 | 34.9 | 30.4 | 7.0 | 25.7 | 1.7 |
| 2028E | 201,195 | 77.46 | 59.0 | 19.1 | 5.3 | 31.6 | 2.7 |
Source: Powered by dataCentral
n Buy
Price (29 Oct 26 13:30)
NT$1,480.00
Target price NT$1,715.00↓
from NT$2,280.00
Expected share price return
15.9%
Expected dividend yield
1.3%
Expected total return
17.1%
Market Cap NT$3,844,364M US$118,697M
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.
| 2308.TW: Fiscal year end 31-Dec | 2308.TW: Fiscal year end 31-Dec | 2308.TW: Fiscal year end 31-Dec | 2308.TW: Fiscal year end 31-Dec | 2308.TW: Fiscal year end 31-Dec | 2308.TW: Fiscal year end 31-Dec | Price: NT$1,480.00; TP: | NT$1,715.00; | Market Cap: | NT$3,844,364m; | Recomm: Buy | |
| Profit & Loss (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | Valuation ratios | 2024 | 2025 | 2026E | 2027E | 2028E |
| Sales revenue | 421,148 | 554,885 | 757,649 | 1,058,154 | 1,545,385 | PE (x) | na | 64.0 | 41.0 | 30.4 | 19.1 |
| Cost of sales | -284,567 | -364,729 | -488,235 | -666,607 | -950,928 | PB (x) | 13.3 | 11.2 | 8.7 | 7.0 | 5.3 |
| Gross profit | 136,580 | 190,157 | 269,414 | 391,547 | 594,457 | EV/EBITDA (x) | 50.4 | 32.5 | 21.7 | 15.5 | 9.9 |
| Gross Margin (%) | 32.4 | 34.3 | 35.6 | 37.0 | 38.5 | FCF yield (%) | 1.0 | 1.4 | 5.0 | 4.0 | 7.9 |
| EBITDA (Adj) | 72,668 | 111,771 | 164,283 | 226,513 | 348,705 | Dividend yield (%) | 0.5 | 0.8 | 1.3 | 1.7 | 2.7 |
| EBITDA Margin (Adj) (%) | 17.3 | 20.1 | 21.7 | 21.4 | 22.6 | Payout ratio (%) | 52 | 52 | 52 | 52 | 52 |
| Depreciation | -25,016 | -27,839 | -35,945 | -32,627 | -39,252 | ROE (%) | 13.1 | 19.0 | 24.0 | 25.7 | 31.6 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 47,652 | 83,932 | 128,338 | 193,886 | 309,453 | EBITDA | 72,668 | 111,771 | 164,283 | 226,513 | 348,705 |
| EBIT Margin (Adj) (%) | 11.3 | 15.1 | 16.9 | 18.3 | 20.0 | Working capital | 4,363 | 732 | 22,946 | -43,962 | -35,199 |
| Net interest | 1,859 | 1,501 | 1,819 | 1,975 | 2,733 | Other | -4,136 | -14,029 | 74,888 | 41,184 | 51,192 |
| Associates | 365 | 493 | 212 | 254 | 261 | Operating cashflow | 72,895 | 98,474 | 262,117 | 223,735 | 364,698 |
| Non-Op/Except/Other Adj | 1,439 | 1,940 | 7,979 | 5,323 | 7,772 | Capex | -33,485 | -46,091 | -69,210 | -71,000 | -60,000 |
| Pre-tax profit | 51,316 | 87,866 | 138,347 | 201,437 | 320,219 | Net acq/disposals | -6,571 | -6,528 | -3,407 | 0 | 0 |
| Tax | -10,925 | -19,930 | -31,572 | -46,331 | -73,650 | Other | -304 | -595 | -1,630 | -254 | -261 |
| Extraord./Min.Int./Pref.div. | -5,163 | -7,828 | -12,927 | -28,537 | -45,374 | Investing cashflow | -40,360 | -53,214 | -74,247 | -71,254 | -60,261 |
| Reported net profit | 35,229 | 60,108 | 93,847 | 126,570 | 201,195 | Dividends paid | -18,696 | -20,313 | -103,844 | -48,438 | -65,327 |
| Net Margin (%) | 8.4 | 10.8 | 12.4 | 12.0 | 13.0 | Financing cashflow | -11,118 | -9,401 | -22,648 | -76,975 | -110,701 |
| Core NPAT | 35,229 | 60,108 | 93,847 | 126,570 | 201,195 | Net change in cash | 30,003 | 33,713 | 165,222 | 75,507 | 193,736 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | 39,410 | 52,383 | 192,906 | 152,735 | 304,698 |
| Reported EPS ($) | 13.56 | 23.14 | 36.13 | 48.73 | 77.46 | ||||||
| Core EPS ($) | 13.56 | 23.14 | 36.13 | 48.73 | 77.46 | ||||||
| DPS ($) | 7.00 | 11.94 | 18.65 | 25.15 | 39.98 | ||||||
| CFPS ($) | 28.06 | 37.91 | 100.91 | 86.13 | 140.40 | ||||||
| FCFPS ($) | 15.17 | 20.17 | 74.26 | 58.80 | 117.30 | ||||||
| BVPS ($) | 111.57 | 132.23 | 169.43 | 210.49 | 280.27 | ||||||
| Wtd avg ord shares (m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Wtd avg diluted shares (m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Growth rates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | 5.0 | 31.8 | 36.5 | 39.7 | 46.0 | ||||||
| EBIT (Adj) (%) | 16.4 | 76.1 | 52.9 | 51.1 | 59.6 | ||||||
| Core NPAT (%) | 5.5 | 70.6 | 56.1 | 34.9 | 59.0 | ||||||
| Core EPS (%) | 5.5 | 70.6 | 56.1 | 34.9 | 59.0 | ||||||
| Balance Sheet (NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash & cash equiv. | 121,793 | 155,113 | 223,884 | 219,427 | 299,087 | ||||||
| Accounts receivables | 89,921 | 121,717 | 162,441 | 250,337 | 358,691 | ||||||
| Inventory | 89,706 | 108,208 | 167,219 | 246,908 | 353,777 | ||||||
| Net fixed & other tangibles | 115,710 | 142,040 | 175,305 | 213,677 | 234,425 | ||||||
| Goodwill & intangibles assets | 0 | 0 | 0 | 0 | 0 | ||||||
| Financial & other | 114,768 | 112,542 | 119,792 | 125,688 | 134,000 | ||||||
| Total assets | 531,898 | 639,619 | 848,640 | 1,056,038 | 1,379,980 | ||||||
| Accounts payable | 69,223 | 94,452 | 120,683 | 164,343 | 230,290 | ||||||
| Short-term debt | 8,121 | 17,325 21,143 | 22,607 | 22,607 | 22,607 | ||||||
| Long-term debt | 32,209 | 17,788 | 17,788 | 17,788 | |||||||
| Provisions & other liab | 142,779 252,332 | 181,310 | 278,471 | 364,077 | 486,204 | ||||||
| Total liabilities | 314,230 | 439,548 | 568,814 | 756,889 | |||||||
| Shareholders' equity Minority interests | 289,809 -10,243 | 343,460 -18,071 | 440,091 -30,998 | 546,759 | 728,001 | ||||||
| 325,389 | 409,092 | -59,535 | -104,909 | ||||||||
| Total equity Net debt (Adj) | 279,565 -81,463 | -116,645 | -183,489 | 487,224 -179,032 | 623,091 -258,692 | ||||||
| Net debt to equity (Adj) (%) | -29.1 | ||||||||||
| For definitions of the | click | -35.8 | -44.9 | -36.7 | -41.5 | ||||||
| items in this table, | please here. |
Figure 1. Delta - 3Q26 earnings review
| Consolidated financials - NT$mn | 3Q26 - Ac tu a l | 3Q26 - Cit i | 3Q26 - Diff (%) | 2Q26 - Ac tu a l | QoQ - (%) | 3Q25 - Ac tu a l | Y oY - (%) | 3Q26 - Consensus | 3Q26 - Diff (%) |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 197,059 | 215,703 | -9% | 183,256 | 8% | 150,318 | 31% | 206,722 | -5% |
| Gross Profit | 67,155 | 77,707 | -14% | 65,308 | 3% | 52,416 | 28% | 74,515 | -10% |
| Operating Profit | 32,620 | 36,553 | -11% | 30,570 | 7% | 24,809 | 31% | 39,031 | -16% |
| Pretax profit | 33,666 | 38,520 | -13% | 35,000 | -4% | 26,983 | 25% | 40,801 | -17% |
| Net Profit | 23,495 | 24,025 | -2% | 25,136 | -7% | 18,606 | 26% | 29,599 | -21% |
| EPS (NT$) | 9.04 | 9.25 | -2% | 9.68 | -7% | 7.16 | 26% | 10.43 | -13% |
| Margins (%) | |||||||||
| Gross Margin | 34.1% | 36.0% | -1.9% | 35.6% | -1.6% | 34.9% | -0.8% | 36.0% | -2.0% |
| Operating margin | 16.6% | 16.9% | -0.4% | 16.7% | -0.1% | 16.5% | 0.0% | 18.9% | -2.3% |
| Net margin | 11.9% | 11.1% | 0.8% | 13.7% | -1.8% | 12.4% | -0.5% | 14.3% | -2.4% |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Company Reports, Citi Research Estimates, Bloomberg consensus
HVDC Adoption and SOFC Commercialization Create Additional Long-Term Growth Opportunities
Delta expects the transition toward high-voltage DC power architecture to accelerate as AI rack power density continues to increase. The company began shipping ±400V HVDC solutions in 3Q26, while NVIDIA is promoting 800VDC architectures for next-generation AI infrastructure. Management believes HVDC adoption will eventually become widespread given its potential to improve power conversion efficiency and reduce distribution losses, although standardization, installation requirements, and shortages of qualified electrical workers could constrain the near-term rollout. Beyond power conversion, Delta is developing solid oxide fuel cell (SOFC) solutions to address growing demand for distributed power generation. The company plans to begin commercial production in 2027, with an initial manufacturing line providing approximately 100MW of annual capacity, primarily supporting customer qualification and pilot installations. Initial
3Q Result Miss, Expecting Recovery in 4Q26
Delta's 3Q earnings and GM were below expectation due to component shortages and delays in data center deployment. GM declined 1.6ppts QoQ to 34.1%, primarily reflecting inventory provisions equivalent to 1.7% of revenue, driven by supply chain mismatches, customer delivery postponements, and product specification adjustments. Nevertheless, OPM remained resilient at 16.6%, broadly flat QoQ and YoY, supported by operating leverage.
Management indicated that AI-related businesses across its four divisions now account for approximately 50% of consolidated revenue, highlighting Delta's increasing exposure to AI infrastructure investment. Management remains confident in Delta's competitive positioning, particularly its integrated capabilities spanning power conversion, power distribution, thermal management, and infrastructure solutions. Although the industry continues to face component shortages, especially for certain power semiconductor devices, Delta believes its supply chain management capabilities compare favorably to competitors. The company also plans to establish a major manufacturing facility in Penang, Malaysia, leveraging the region's established infrastructure supply chain and engineering talent.
customers include domestic utility and industrial users, alongside several overseas customers. Management emphasized that SOFC shipments will remain limited initially as the company prioritizes product reliability and qualification.
4Q26 Recovery Expected as Inventory Normalizes, with Positive Growth Outlook for 2027
Management expects revenue to increase sequentially in 4Q26 as delayed customer deliveries resume and inventory begins to normalize. Gross margin should improve from 3Q26 levels, although management remained cautious given potential year-end inventory adjustments. The 3Q26 inventory provisions largely reflected customer-specific products rather than structural obsolescence, and some provisions could potentially be reversed following successful deliveries. Nevertheless, management acknowledged that inventory buffers will likely remain structurally higher than historical levels to accommodate volatile AI infrastructure deployment schedules. Raw material costs have increased approximately 2% yearto-date, prompting ongoing pricing negotiations with customers, with limited recovery expected in 4Q26 and a more meaningful impact in 2027. Operating expenses will continue increasing in absolute terms to support R&D and capacity expansion. Management remains positive on 2027 revenue growth, although it did not provide quantitative guidance. Separately, management expects no near-term shipment disruption from the ongoing Vicor intellectual property litigation.
We lower earnings projection on power shortages, labor constraints, financing conditions, and regulatory uncertainties could create quarterly shipment volatility, but we believe its multiyear AI infrastructure growth cycle intact. We maintain Buy with TP NT$1,715 (based on lower PER of 35x of 2027 EPS, from 40x previously)
Figure 2. Delta - Earnings estimate revisions
| NT$ mn | 2026E - New | 2026E - Old | 2026E - Chg | 2027E - New | 2027E - Old | 2027E - Chg | 2028E - New | 2028E - Old | 2028E - Chg |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 757,649 | 794,187 | -5% | 1,058,154 | 1,176,207 | -10% | 1,545,385 | 1,765,727 | -12% |
| Gross profit | 269,414 | 290,307 | -7% | 391,547 | 451,499 | -13% | 594,457 | 708,167 | -16% |
| OPEX | 141,076 | 150,937 | -7% | 197,661 | 220,153 | -10% | 285,005 | 327,361 | -13% |
| Operating profit | 128,338 | 139,370 | -8% | 193,886 | 231,346 | -16% | 309,453 | 380,805 | -19% |
| Pre-tax profit | 138,347 | 150,216 | -8% | 201,437 | 238,549 | -16% | 320,219 | 391,244 | -18% |
| Net profit | 93,847 | 98,861 | -5% | 126,570 | 149,898 | -16% | 201,195 | 245,908 | -18% |
| EPS (NT$) | 36.13 | 38.06 | -5% | 48.73 | 57.71 | -16% | 77.46 | 94.67 | -18% |
| Ratio | New | Old | d i ff | New | Old | d i ff | New | Old | d i ff |
| Gross margin (%) | 35.6 | 36.6 | -1.0 | 37.0 | 38.4 | -1.4 | 38.5 | 40.1 | -1.6 |
| OPEX to Sales ratio (%) | 18.6 | 19.0 | -0.4 | 18.7 | 18.7 | 0.0 | 18.4 | 18.5 | -0.1 |
| Operating margin (%) | 16.9 | 17.5 | -0.6 | 18.3 | 19.7 | -1.3 | 20.0 | 21.6 | -1.5 |
| Net margin (%) | 12.4 | 12.4 | -0.1 | 12.0 | 12.7 | -0.8 | 13.0 | 13.9 | -0.9 |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research Estimates Source: Company Reports, Citi Research Estimates, TEJ
Figure 5. Delta - Quarterly earnings forecasts
| NT$mn | 1Q26 | 2Q26 | 3Q26 | 4Q26E | 1Q27E | 2Q27 E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 159,353 | 183,256 | 197,059 | 217,982 | 212,938 | 242,318 | 289,975 | 312,922 | 554,885 | 757,649 | 1,058,154 | 1,545,385 |
| Gross profit | 58,961 | 65,308 | 67,155 | 77,991 | 77,922 | 89,572 | 107,398 | 116,655 | 190,157 | 269,414 | 391,547 | 594,457 |
| OPEX | 30,544 | 34,738 | 34,535 | 41,260 | 40,307 | 45,556 | 53,835 | 57,962 | 106,224 | 141,076 | 197,661 | 285,005 |
| Operating profit | 28,417 | 30,570 | 32,620 | 36,730 | 37,615 | 44,015 | 53,563 | 58,693 | 83,932 | 128,338 | 193,886 | 309,453 |
| Total Non-OP | 2,676 | 4,430 | 1,046 | 1,858 | 1,911 | 1,911 | 1,814 | 1,915 | 3,934 | 10,009 | 7,552 | 10,767 |
| Pre-tax profit | 31,093 | 35,000 | 33,666 | 38,588 | 39,526 | 45,926 | 55,377 | 60,608 | 87,866 | 138,347 | 201,437 | 320,219 |
| Income tax | 7,258 | 7,831 | 7,608 | 8,875 | 9,091 | 10,563 | 12,737 | 13,940 | 19,930 | 31,572 | 46,331 | 73,650 |
| Net profit | 20,556 | 25,136 | 23,495 | 24,662 | 24,652 | 28,644 | 34,539 | 38,735 | 60,108 | 93,847 | 126,570 | 201,195 |
| EPS (NT$) | 7 .91 | 9.68 | 9.04 | 9.49 | 9.49 | 11.03 | 13.30 | 14.91 | 23.14 | 36.13 | 48.73 | 77 .46 |
| Product Mix (%) | ||||||||||||
| Power Electronics | 59% | 57% | 57% | 55% | 58% | 58% | 58% | 57% | 57% | 57% | 57% | 60% |
| Infrastructure | 32% | 34% | 35% | 36% | 35% | 35% | 36% | 37% | 33% | 35% | 36% | 36% |
| Automation | 9% | 8% | 8% | 8% | 7% | 7% | 6% | 6% | 10% | 9% | 6% | 4% |
| Others | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Margins (%) | ||||||||||||
| Gross profit | 37 .0 | 35.6 | 34.1 | 35.8 | 36.6 | 37 .0 | 37 .0 | 37 .3 | 34.3 | 35.6 | 37 .0 | 38.5 |
| OPEX to Sales Ratio | 19.2 | 19.0 | 17.5 | 18.9 | 18.9 | 18.8 | 18.6 | 18.5 | 19.1 | 18.6 | 18.7 | 18.4 |
| Operating profit | 17 .8 | 16.7 | 16.6 | 16.9 | 17 .7 | 18.2 | 18.5 | 18.8 | 15.1 | 16.9 | 18.3 | 20 .0 |
| Pre-tax profit | 19.5 | 19.1 | 17.1 | 17.7 | 18.6 | 19.0 | 19.1 | 19.4 | 15.8 | 18.3 | 19.0 | 20.7 |
| Net profit | 12.9 | 13.7 | 11.9 | 11.3 | 11.6 | 11.8 | 11.9 | 12.4 | 10.8 | 12.4 | 12.0 | 13.0 |
| Y /Y (%) | ||||||||||||
| Net sales | 34.0 | 47.7 | 31.1 | 34.9 | 33.6 | 32.2 | 47.2 | 43.6 | 31.8 | 36.5 | 39.7 | 46.0 |
| Gross profit | 56.0 | 48.3 | 28.1 | 39.5 | 32.2 | 37.2 | 59.9 | 49.6 | 39.2 | 41.7 | 45.3 | 51.8 |
| OPEX | 28.6 | 36.9 | 25.1 | 39.9 | 32.0 | 31.1 | 55.9 | 40.5 | 19.4 | 32.8 | 40.1 | 44.2 |
| Operating profit | 102.5 | 63.7 | 31.5 | 39.0 | 32.4 | 44.0 | 64.2 | 59.8 | 76.1 | 52.9 | 51.1 | 59.6 |
| Pre-tax profit | 98.5 | 78.8 | 24.8 | 50.4 | 27.1 | 31.2 | 64.5 | 57.1 | 71.2 | 57.5 | 45.6 | 59.0 |
| Net profit | 100.9 | 80.2 | 26.3 | 42.4 | 19.9 | 14.0 | 47.0 | 57.1 | 70.6 | 56.1 | 34.9 | 59.0 |
| Q/Q(%) | ||||||||||||
| Net sales | (1.4) | 15.0 | 7.5 | 10.6 | (2.3) | 13.8 | 19.7 | 7.9 | ||||
| Gross profit | 5.5 | 10.8 | 2.8 | 16.1 | (0.1) | 15.0 | 19.9 | 8.6 | ||||
| Operating profit | 7.6 | 7.6 | 6.7 | 12.6 | 2.4 | 17.0 | 21.7 | 9.6 | ||||
| Pre-tax profit | 21.2 | 12.6 | (3.8) | 14.6 | 2.4 | 16.2 | 20.6 | 9.4 | ||||
| Net profit | 18.7 | 22.3 | (6.5) | 5.0 | (0.0) | 16.2 | 20.6 | 12.1 |
Source: Company Reports, Citi Research Estimates
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission. Source: Company Reports, Citi Research Estimates, TEJ
Bull/Bear: Delta Electronics (2308.TW)
Spread 49pp
Current Price and expected returns (upside/downside) as of 29 Oct 2026
BULL Assumptions
- Target multiple at 40x
BASE Assumptions
- Sales to grow by 36.5-39.7% in 2026E-27E with OPM at 16.9-18.3%
- Target multiple at 35x
BEAR Assumptions
- Sales to grow by 10% in 2026E-27E with OPM at 14.0%
- Target multiple at 25x
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$1,715 is based on 35x 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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