PDF 原檔：報告_Daiwa_台達電2308_20261029_original.pdf
圖片清單（已驗證 2026-10-30）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
報告_Daiwa_台達電2308_20261029_001.png |
23,853B | 真資料圖 | 股價走勢折線圖：Delta Ele 股價（左軸，TWD 800-2,550）與相對 TWSE 指數表現（右軸，%），橫軸 Oct-25–Oct-26 |
報告_Daiwa_台達電2308_20261029_002.png |
30,233B | 真資料圖 | 1 年期前瞻 PER band 圖：股價線（深藍）對應 23x／31x／39x／48x 四條本益比軌跡線，橫軸 Oct-17–Oct-26；2026 年股價自高點約 2,400 回落至約 1,500，貼近 31x 線 |
報告_Daiwa_台達電2308_20261029_003.png |
33,224B | 真資料圖 | 各事業部營業利益率季度折線圖（1Q23–3Q26）：Power Electronics 約 19%（3Q26）、Infrastructure 約 18-19%（逼近 Power Electronics）、Automation 轉正約 5%、Mobility 約 -2% |
全數 3 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
Delta Electronics (2308 TT)
Target price: TWD3,000.00 (from TWD3,088.00)
Shareprice(29Oct):TWD1,480.00 | Up/downside:+102.7%
3Q26 review: margin likely bottomed-out
- Gross margin to recover on lower inventory provisions in 4Q26
- Addressable market remains intact despite some near-term hiccups
- Reaffirming our Buy (1) rating; trimming 12M TP to TWD3,000
What's new: We provide our latest views on Delta after its 3Q26 results call on 29 October.
What's the impact: Business outlook. During the results call, Delta remained positive on AI monetisation after its analysis of Anthropic's S-1 filing. Management flagged shortages of components, power and skilled electricians and slower-than-expected data centre buildout to be potential hiccups in the process; however, it still sees strong underlying demand. As such, we still expect sequential revenue growth in both 4Q26E and 1Q27E as component shortages had deferred 3Q26 demand. On rising material costs, Delta noted that BoM costs have increased by 2% as of 3Q26 (vs. early 2026), with the company gradually passing these costs through to end customers in 4Q26 and 1Q27. We believe the main gross margin driver will likely still be the absence of inventory write-offs and a higher power mix in 4Q26E. We forecast a gross margin recovery to 36% and a record operating margin of 18.5% in 4Q26. As for long-term growth, we maintain our investment theses that DC-DC module and HVDC adoption will become key growth drivers for Delta in 2027 and 2028, respectively.
3Q26 results missed on gross margin. Delta's 3Q26 earnings were TWD23.5bn (EPS: TWD9.04), missing our estimate of TWD27.3bn and Bloomberg consensus estimate of TWD29.6bn by 14% and 21%, respectively. We attribute the weakness mainly to lower-than-expected gross margin, driven by: 1) higher-than-expected inventory write-offs amid product shipment hiccups; 2) a one-off provision for customer claims, with the related loss likely to ultimately be borne by the supplier; and 3) rising material costs. Based on our calculation, Delta recognised c.TWD4bn of inventory provision loss in 3Q26, which reduced gross margin by 2pp. Excluding inventory provision loss, gross margin was c.35.8%, close to our previous estimate of 36.3%. 3Q26 revenue reached TWD197.1bn (up 8% QoQ and 31% YoY), which was also negatively affected by product shipment hiccups (vs. our previous estimate of 10% QoQ growth).
What we recommend: We trim our 2026-28E EPS by 2-6% to reflect lower revenue assumptions due to the impact of component shortages. We reaffirm our Buy (1) call but trim our 12M TP to TWD3,000 (from TWD3,088) based on an unchanged target PER of 49x (high-end of its 3year range of 11-50x) applied to our 1-year-forward EPS forecast. Key downside risk: lower-than-expected demand.
How we differ: Our 2028E revenue is 12% above the Bloomberg consensus, likely on our more bullish assumption regarding HVDC adoption.
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Sheng Cheng (886) 2 8758 6253
sheng.cheng@daiwacm-cathay.com.tw
Thomas Kim (886) 2 8758 6249 thomas.kim@daiwacm-cathay.com.tw
Forecast revisions (%)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue change | (2.1) | (4.5) | (4.4) |
| Net profit change | (5.7) | (3.6) | (2.2) |
| Core EPS (FD) change | (5.7) | (3.6) | (2.2) |
Source: Daiwa forecasts
Share price performance
| 12-month range | 890.00-2,520.00 |
|---|---|
| Market cap (USDbn) | 118.57 |
| 3m avg daily turnover (USDm) | 657.14 |
| Shares outstanding (m) | 2,598 |
| Major shareholder | HsiangTa International (10.3%) |
Financial summary (TWD)
| Year to 31 Dec | 26E | 27E | 28E |
|---|---|---|---|
| Revenue (m) | 756,535 | 1,080,156 | 1,749,466 |
| Operating profit (m) | 131,954 | 220,210 | 397,270 |
| Net profit (m) | 98,942 | 159,427 | 289,735 |
| Core EPS (fully-diluted) | 38.091 | 61.376 | 111.542 |
| EPS change (%) | 64.6 | 61.1 | 81.7 |
| Daiwa vs Cons. EPS (%) | (5.7) | (4.4) | 17.0 |
| PER (x) | 38.9 | 24.1 | 13.3 |
| Dividend yield (%) | 0.8 | 1.4 | 2.0 |
| DPS | 11.6 | 20.0 | 30.0 |
| PBR (x) | 10.6 | 7.9 | 5.3 |
| EV/EBITDA (x) | 23.9 | 15.0 | 8.6 |
| ROE (%) | 31.4 | 37.5 | 47.9 |
Source: FactSet, Daiwa forecasts
Delta: revenue and earnings forecasts - Daiwa vs. consensus
| (TWDm) | 2026E - Previous | 2026E - New | 2026E - Consensus | 2027E - Previous | 2027E - New | 2027E - Consensus | 2028E - Previous | 2028E - New | 2028E - Consensus |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 772,369 | 756,535 | 774,837 | 1,130,604 | 1,080,156 | 1,048,818 | 1,830,517 | 1,749,466 | 1,557,095 |
| Diff (%) | -2.1% | -2.4% | -4.5% | 3.0% | -4.4% | 12.4% | |||
| Gross Margin (%) | 36.4% | 35.6% | 36.3% | 36.6% | 36.8% | 37.4% | 37.4% | 38.1% | 37.8% |
| Operating profit | 139,487 | 131,954 | 139,160 | 228,659 | 220,210 | 226,553 | 406,934 | 397,270 | 339,515 |
| Op Margin (%) | 18.1% | 17.4% | 18.0% | 20.2% | 20.4% | 21.6% | 22.2% | 22.7% | 21.8% |
| Net profit | 104,917 | 98,942 | 104,917 | 165,332 | 159,427 | 166,703 | 296,181 | 289,735 | 247,703 |
| EPS | 40.39 | 38.09 | 40.39 | 63.65 | 61.38 | 64.18 | 114.02 | 111.54 | 95.36 |
| Diff (%) | -5.7% | -5.7% | -3.6% | -4.4% | -2.2% | 17.0% |
Source: Bloomberg, Daiwa forecasts
Delta: quarterly and annual P&L statement
| (TWDm) | 2026E - 1Q | 2026E - 2Q | 2026E - 3Q | 2026E - 4QE | 2027E - 1QE | 2027E - 2QE | 2027E - 3QE | 2027E - 4QE | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net revenue | 159,353 | 183,256 | 197,059 | 216,867 | 221,125 | 252,973 | 287,220 | 318,838 | 554,885 | 756,535 | 1,080,156 | 1,749,466 |
| COGS | -100,392 | -117,948 | -129,904 | -138,786 | -140,612 | -159,902 | -180,713 | -201,475 | -364,729 | -487,030 | -682,702 | -1,083,192 |
| Gross profit | 58,961 | 65,308 | 67,155 | 78,082 | 80,512 | 93,071 | 106,508 | 117,363 | 190,157 | 269,505 | 397,454 | 666,274 |
| Operating expenses | -30,544 | -34,738 | -34,535 | -37,735 | -38,476 | -42,499 | -46,530 | -49,739 | -106,224 | -137,551 | -177,244 | -269,004 |
| Operating profit | 28,417 | 30,570 | 32,620 | 40,347 | 42,037 | 50,571 | 59,978 | 67,624 | 83,932 | 131,954 | 220,210 | 397,270 |
| Non-operating profit | 2,676 | 4,430 | 1,046 | 1,694 | 1,199 | 1,187 | 1,179 | 1,390 | 3,934 | 9,846 | 4,955 | 5,249 |
| Pretax profit | 31,093 | 35,000 | 33,666 | 42,041 | 43,236 | 51,758 | 61,157 | 69,014 | 87,866 | 141,800 | 225,165 | 402,518 |
| Income taxes | -7,258 | -7,831 | -7,608 | -9,249 | -9,512 | -11,387 | -13,455 | -15,183 | -19,930 | -31,946 | -49,536 | -86,541 |
| Net profit | 20,556 | 25,136 | 23,495 | 29,756 | 30,407 | 36,577 | 43,394 | 49,049 | 60,108 | 98,942 | 159,427 | 289,735 |
| Net EPS (TWD) | 7.91 | 9.68 | 9.04 | 11.46 | 11.71 | 14.08 | 16.71 | 18.88 | 23.14 | 38.09 | 61.38 | 111.54 |
| Operating Ratios | ||||||||||||
| Gross margin | 37.0% | 35.6% | 34.1% | 36.0% | 36.4% | 36.8% | 37.1% | 36.8% | 34.3% | 35.6% | 36.8% | 38.1% |
| Operating margin | 17.8% | 16.7% | 16.6% | 18.6% | 19.0% | 20.0% | 20.9% | 21.2% | 15.1% | 17.4% | 20.4% | 22.7% |
| Pre-tax margin | 19.5% | 19.1% | 17.1% | 19.4% | 19.6% | 20.5% | 21.3% | 21.6% | 15.8% | 18.7% | 20.8% | 23.0% |
| Net margin | 12.9% | 13.7% | 11.9% | 13.7% | 13.8% | 14.5% | 15.1% | 15.4% | 10.8% | 13.1% | 14.8% | 16.6% |
| YoY (%) | ||||||||||||
| Net revenue | 34% | 48% | 31% | 34% | 39% | 38% | 46% | 47% | 32% | 36% | 43% | 62% |
| Gross profit | 56% | 48% | 28% | 40% | 37% | 43% | 59% | 50% | 39% | 42% | 47% | 68% |
| Operating profit | 102% | 64% | 31% | 53% | 48% | 65% | 84% | 68% | 76% | 57% | 67% | 80% |
| Pretax profit | 99% | 79% | 25% | 64% | 39% | 48% | 82% | 64% | 71% | 61% | 59% | 79% |
| Net profit | 101% | 80% | 26% | 72% | 48% | 46% | 85% | 65% | 71% | 65% | 61% | 82% |
| QoQ (%) | ||||||||||||
| Net revenue | -1% | 15% | 8% | 10% | 2% | 14% | 14% | 11% | ||||
| Gross profit | 5% | 11% | 3% | 16% | 3% | 16% | 14% | 10% | ||||
| Operating profit | 8% | 8% | 7% | 24% | 4% | 20% | 19% | 13% | ||||
| Pretax profit | 21% | 13% | -4% | 25% | 3% | 20% | 18% | 13% | ||||
| Net profit | 19% | 22% | -7% | 27% | 2% | 20% | 19% | 13% |
Source: Company, Daiwa forecast
Delta: 1-year forward PER band
Delta: operating margin by segment (quarterly)
Source: TEJ, Daiwa forecasts
Source: Company
Financial summary
Key assumptions
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Automation revenue growth (YoY) | 18 | 19 | (0) | (3) | 5 | 12 | 8 | 7 |
| Infrastructure revenue growth (YoY) | (8) | 26 | (4) | 2 | 82 | 37 | 45 | 46 |
| Power Electronics sales growth (YoY) | 21 | 21 | 9 | (10) | 25 | 46 | 49 | 80 |
Profit and loss (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Power Electronics | 187,316 | 227,311 | 248,257 | 223,992 | 280,032 | 409,251 | 610,724 | 1,099,848 |
| Automation | 45,881 | 54,519 | 54,296 | 52,403 | 54,943 | 61,691 | 66,914 | 71,587 |
| Other Revenue | 81,474 | 102,613 | 98,674 | 144,752 | 219,911 | 285,593 | 402,518 | 578,031 |
| Total Revenue | 314,671 | 384,443 | 401,227 | 421,148 | 554,885 | 756,535 | 1,080,156 | 1,749,466 |
| Other income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS | (224,461) | (273,671) | (284,013) | (284,567) | (364,729) | (487,030) | (682,702) | (1,083,192) |
| SG&A | (31,642) | (37,564) | (40,215) | (47,354) | (57,482) | (73,967) | (91,411) | (139,621) |
| Other op.expenses | (27,202) | (31,770) | (36,048) | (41,575) | (48,743) | (63,584) | (85,832) | (129,383) |
| Operating profit | 31,365 | 41,439 | 40,950 | 47,652 | 83,932 | 131,954 | 220,210 | 397,270 |
| Net-interest inc./(exp.) | 134 | 38 | 899 | 1,859 | 1,501 | 1,517 | 1,475 | 1,469 |
| Assoc/forex/extraord./others | 4,128 | 4,588 | 6,793 | 1,804 | 2,433 | 8,329 | 3,480 | 3,780 |
| Pre-tax profit | 35,628 | 46,065 | 48,642 | 51,316 | 87,866 | 141,800 | 225,165 | 402,518 |
| Tax | (7,128) | (9,075) | (9,762) | (10,925) | (19,930) | (31,946) | (49,536) | (86,541) |
| Min. int./pref. div./others | (1,703) | (4,325) | (5,488) | (5,163) | (7,828) | (10,912) | (16,202) | (26,242) |
| Net profit (reported) | 26,796 | 32,666 | 33,393 | 35,229 | 60,108 | 98,942 | 159,427 | 289,735 |
| Net profit (adjusted) | 26,796 | 32,666 | 33,393 | 35,229 | 60,108 | 98,942 | 159,427 | 289,735 |
| EPS (reported)(TWD) | 10.316 | 12.576 | 12.855 | 13.562 | 23.140 | 38.091 | 61.376 | 111.542 |
| EPS (adjusted)(TWD) | 10.316 | 12.576 | 12.855 | 13.562 | 23.140 | 38.091 | 61.376 | 111.542 |
| EPS (adjusted fully-diluted)(TWD) | 10.316 | 12.576 | 12.855 | 13.562 | 23.140 | 38.091 | 61.376 | 111.542 |
| DPS (TWD) | 5.500 | 5.500 | 9.840 | 6.430 | 7.000 | 11.600 | 20.000 | 30.000 |
| EBIT | 31,365 | 41,439 | 40,950 | 47,652 | 83,932 | 131,954 | 220,210 | 397,270 |
| EBITDA | 48,516 | 60,375 | 62,540 | 72,668 | 111,771 | 161,119 | 257,184 | 441,438 |
Cash flow (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Profit before tax | 35,628 | 46,065 | 48,642 | 51,316 | 87,866 | 141,800 | 225,165 | 402,518 |
| Depreciation and amortisation | 17,151 | 18,936 | 21,590 | 25,016 | 27,839 | 29,164 | 36,974 | 44,168 |
| Tax paid | (7,128) | (9,075) | (9,762) | (10,925) | (19,930) | (31,946) | (49,536) | (86,541) |
| Change in working capital | (20,506) | (20,062) | 2,466 | (2,538) | (24,348) | (75,518) | (99,763) | (139,263) |
| Other operational CF items | 3,175 | 10,665 | 8,151 | 10,025 | 27,047 | (155) | (80) | (80) |
| Cash flow from operations | 28,319 | 46,529 | 71,086 | 72,895 | 98,474 | 63,346 | 112,760 | 220,802 |
| Capex | (23,027) | (21,824) | (27,830) | (33,485) | (46,091) | (70,358) | (64,809) | (83,974) |
| Net (acquisitions)/disposals | (1,953) | (2,489) | (5,421) | (304) | (2,702) | 0 | 0 | 0 |
| Other investing CF items | (1,501) | (406) | (251) | (6,571) | (4,420) | 0 | 0 | 0 |
| Cash flow from investing | (26,481) | (24,719) | (33,502) | (40,360) | (53,214) | (70,358) | (64,809) | (83,974) |
| Change in debt | 6,993 | (1,900) | 10,327 | 7,135 | 11,729 | 0 | 0 | 0 |
| Net share issues/(repurchases) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends paid | (15,751) | (15,026) | (27,455) | (18,696) | (20,313) | (30,132) | (51,951) | (77,926) |
| Other financing CF items | 421 | (2,814) | 6,651 | 444 | (817) | 0 | 0 | 0 |
| Cash flow from financing | (8,337) | (19,739) | (10,478) | (11,118) | (9,401) | (30,132) | (51,951) | (77,926) |
| Forex effect/others | (2,358) | 9,621 | (1,198) | 8,586 | (2,146) | 0 | 0 | 0 |
| Change in cash | (8,857) | 11,692 | 25,909 | 30,003 | 33,713 | (37,143) | (4,001) | 58,901 |
| Free cash flow | 5,292 | 24,705 | 43,257 | 39,410 | 52,383 | (7,011) | 47,950 | 136,828 |
Source: FactSet, Daiwa forecasts
Financial summary continued …
Balance sheet (TWDm)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Cash & short-term investment | 51,268 | 63,572 | 92,620 | 121,793 | 155,113 | 117,970 | 113,969 | 172,871 |
| Inventory | 69,697 | 83,980 | 81,756 | 89,706 | 108,208 | 146,708 | 211,561 | 313,213 |
| Accounts receivable | 72,700 | 89,676 | 81,706 | 92,180 | 125,020 | 168,618 | 237,859 | 351,023 |
| Other current assets | 3,213 | 3,222 | 3,877 | 7,246 | 7,440 | 7,440 | 7,440 | 7,440 |
| Total current assets | 196,878 | 240,450 | 259,958 | 310,925 | 395,781 | 440,736 | 570,829 | 844,547 |
| Fixed assets | 76,607 | 86,267 | 98,002 | 115,710 | 142,040 | 183,233 | 211,068 | 250,875 |
| Goodwill & intangibles | 73,610 | 77,170 | 78,544 | 78,783 | 75,326 | 75,326 | 75,326 | 75,326 |
| Other non-current assets | 18,017 | 21,987 | 21,242 | 26,480 | 26,472 | 26,626 | 26,706 | 26,786 |
| Total assets | 365,112 | 425,874 | 457,747 | 531,898 | 639,619 | 725,922 | 883,930 | 1,197,534 |
| Short-term debt | 4,442 | 2,119 | 5,875 | 8,121 | 17,325 | 2,364 | 2,364 | 2,364 |
| Accounts payable | 54,570 | 62,716 | 53,539 | 69,223 | 94,452 | 101,032 | 135,362 | 210,916 |
| Other current liabilities | 49,157 | 60,179 | 66,671 | 74,939 | 97,888 | 97,888 | 97,888 | 97,888 |
| Total current liabilities | 108,169 | 125,013 | 126,085 | 152,283 | 209,665 | 201,285 | 235,615 | 311,169 |
| Long-term debt | 43,914 | 44,337 | 51,420 | 56,309 | 56,703 | 56,703 | 56,703 | 56,703 |
| Other non-current liabilities | 26,904 | 31,156 | 37,506 | 43,740 | 47,861 | 47,861 | 47,861 | 47,861 |
| Total liabilities | 178,988 | 200,507 | 215,011 | 252,332 | 314,230 | 305,849 | 340,179 | 415,733 |
| Share capital | 25,975 | 25,975 | 25,975 | 25,975 | 25,975 | 25,975 | 25,975 | 25,975 |
| Reserves/R.E./others | 128,811 | 160,813 | 173,188 | 204,112 | 242,083 | 336,766 | 460,444 | 698,495 |
| Shareholders' equity | 154,787 | 186,789 | 199,164 | 230,087 | 268,058 | 362,741 | 486,419 | 724,470 |
| Minority interests | 31,338 | 38,578 | 43,572 | 49,478 | 57,331 | 57,331 | 57,331 | 57,331 |
| Total equity & liabilities | 365,112 | 425,874 | 457,747 | 531,898 | 639,619 | 725,922 | 883,930 | 1,197,534 |
| EV | 3,872,790 | 3,865,827 | 3,852,611 | 3,836,479 | 3,820,611 | 3,842,793 | 3,846,793 | 3,787,892 |
| Net debt/(cash) | (2,912) | (17,115) | (35,325) | (57,363) | (81,085) | (58,903) | (54,902) | (113,803) |
| BVPS (TWD) | 59.590 | 71.910 | 76.674 | 88.579 | 103.197 | 139.648 | 187.261 | 278.906 |
Key ratios (%)
| Year to 31 Dec | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Sales (YoY) | 11.3 | 22.2 | 4.4 | 5.0 | 31.8 | 36.3 | 42.8 | 62.0 |
| EBITDA (YoY) | 2.6 | 24.4 | 3.6 | 16.2 | 53.8 | 44.2 | 59.6 | 71.6 |
| Operating profit (YoY) | (0.2) | 32.1 | (1.2) | 16.4 | 76.1 | 57.2 | 66.9 | 80.4 |
| Net profit (YoY) | 5.1 | 21.9 | 2.2 | 5.5 | 70.6 | 64.6 | 61.1 | 81.7 |
| Core EPS (fully-diluted) (YoY) | 5.1 | 21.9 | 2.2 | 5.5 | 70.6 | 64.6 | 61.1 | 81.7 |
| Gross-profit margin | 28.7 | 28.8 | 29.2 | 32.4 | 34.3 | 35.6 | 36.8 | 38.1 |
| EBITDA margin | 15.4 | 15.7 | 15.6 | 17.3 | 20.1 | 21.3 | 23.8 | 25.2 |
| Operating-profit margin | 10.0 | 10.8 | 10.2 | 11.3 | 15.1 | 17.4 | 20.4 | 22.7 |
| Net profit margin | 8.5 | 8.5 | 8.3 | 8.4 | 10.8 | 13.1 | 14.8 | 16.6 |
| ROAE | 17.8 | 19.1 | 17.3 | 16.4 | 24.1 | 31.4 | 37.5 | 47.9 |
| ROAA | 7.6 | 8.3 | 7.6 | 7.1 | 10.3 | 14.5 | 19.8 | 27.8 |
| ROCE | 13.8 | 16.4 | 14.3 | 14.8 | 22.6 | 30.0 | 40.7 | 55.0 |
| ROIC | 14.6 | 17.0 | 15.7 | 17.5 | 27.8 | 33.8 | 40.4 | 53.9 |
| Net debt to equity | net cash | net cash | net cash | net cash | net cash | net cash | net cash | net cash |
| Effective tax rate | 20.0 | 19.7 | 20.1 | 21.3 | 22.7 | 22.5 | 22.0 | 21.5 |
| Accounts receivable (days) | 79.7 | 77.1 | 78.0 | 75.4 | 71.4 | 70.8 | 68.7 | 61.4 |
| Current ratio (x) | 1.8 | 1.9 | 2.1 | 2.0 | 1.9 | 2.2 | 2.4 | 2.7 |
| Net interest cover (x) | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Net dividend payout | 56.1 | 53.3 | 78.2 | 50.0 | 51.6 | 50.1 | 52.5 | 48.9 |
| Free cash flow yield | 0.1 | 0.6 | 1.1 | 1.0 | 1.4 | n.a. | 1.2 | 3.6 |
Source: FactSet, Daiwa forecasts
Company profile
Founded in 1971, Delta Electronics has been the global leader in switching power supply solutions since 2002 and DC brushless fans since 2006. Its business covers 3 key areas: power electronics (eg, power supplies, thermal management products and passive components), automation (eg, controllers, robot arms and building management systems), and infrastructure (eg, datacentre infrastructure, networking and EV charging).
ESG analysis
ESG risks
| Risks | Management | Analystcomments | |
|---|---|---|---|
| Executive/board quality | 1 | Delta's board has 7 non-independent and 5 independent directors with a term of three years. The total number of directors and ratio of independent directors appear higher than most other listed companies. Besides, according to Delta's CSR report, enhancing the board's functions is one of the key goals for the company to achieve better corporate governance; also, the board members' diversity and professionalism will be taken into consideration to ensure a good board quality. Moreover, the company evaluates all the directors in the board using internal regulations and an external independent institution each year and at least once every three years, respectively. We believe Delta has implemented relatively more enhanced measure than most listed firms to improve its board quality. | |
| G | Capital management | 2 | During 2016-19, Delta's payout ratio was stable in the range of c.70%, but fell to 56% in 2020 and 53% in 2021. For 2020, it was mainly due to a sizeable non-cash re-valuation gain after the acquisition of Delta Thailand (DET), while the company maintained more cash on hand to deal with the uncertainties caused by COVID-19. However, the DPS growth from 2016 to 2021 was limited, as Delta struggled with business diversification into new end-markets (eg, smartphone, NEV). We believe that Delta's effort started to bear fruit in recent years after its NEV business has gradually picked up. Overall, we see a stable dividend policy from Delta and expect its DPS to continue to grow YoY in the future given that they declared a TWD11.6 DPS for 2025 which equals a 50% payout ratio. |
| Related party & transaction | 1 | Revenue from related parties stood at 12% of total 2025 revenue and purchases from related parties were at 11%. We see limited risk from related party transactions. | |
| S | Supplychain management | 1 | Delta focuses on: 1) localised management, 2) supplier certification and risk management, and 3) supplier sustainability engagement as key initiatives under the scope of supply chain management. In 2019, 144 new suppliers joined Delta's supply chain system. All of them passed environmental and social evaluations, signed the declaration of "non-use of conflict materials", and complied with Responsible Business Alliance's (BRA) Code of Conduct. Also, these vendors had to implement and abide by Delta's supply chain CSR policy and code of conduct. To lower ESG risks, Delta carries out RBA audits and monitors high-risk critical suppliers each year. The suppliers that fail these audits have to provide detailed improvement plans in response to identified issues. Besides, Delta has surveyed a total of 263 suppliers with potential risk and 63 suppliers with high risk of the total 1,331 suppliers, based on its CSR policy and code of conduct. If these suppliers are flagged as high-risk and no concrete improvements are made, Delta may consider terminating cooperation and transactions with them to improve the company's engagement on supplier sustainability. Overall, we think Delta has a solid plan to improve its supply chain management with specific KPIs, including: 1) achieving supplier improvement rate of 80% in 2025, 2) reducing GHG emissions rate of critical suppliers by 10% in 2025, and 3) improving water saving rate of critical suppliers by 12% in 2025. |
| S | Datasecurity | 2 | Delta's Information Security team created Delta's Information Security Policy in November 2013 and started providing educational training to global employees in 2014. Delta gradually introduced the Information Security Management System (ISMS) in 2016 and obtained the ISO 27001 international certification in 2018. According to ISO27001, Delta has to conduct at least one internal audit on information security and appoint an independent institution to conduct audit externally. According to Delta, no major deficiencies have been found in recent years. |
Note: Management score represents a company's ability to manage/benefit from certain ESG topics. The scores range from 1 to 3, with 1 being the strongest.
Update Date: 30 Sep 2026
Source: Daiwa, Company