PDF 原檔：報告_UBS_台達電2308_20260730_original.pdf
圖片清單（已驗證 2026-07-31）
| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
260730_ubs_delta_001.png |
54KB | 真資料圖 | Sales/Opex（長條圖）疊加 GM/OpM（折線）走勢，2010-2027E |
260730_ubs_delta_002.png |
47KB | 真資料圖 | 季度營收（NT$mn）按產品線（Power Supply Products／Mobility／Infrastructure／Automation）走勢，Q118-Q326E |
260730_ubs_delta_003.png |
51KB | 真資料圖 | 台達電股價與 NTM P/E 走勢（附 ±1 SD、平均 17x），Jul-02 至 Jul-26 |
260730_ubs_delta_004.png |
29KB | 真資料圖 | 台達電股價與遠期 EPS（Forward EPS）走勢對照，Jul-02 至 Jul-26 |
260730_ubs_delta_005.png |
95KB | 真資料圖 | 目標價（藍線）與股價（黑線）沿革，2023/4-2026中，下方標示 Buy／No Rating 評等區段（為既有嵌入之 260715 版本之更新版，涵蓋至 2026-07 TP NT$2,750） |
原始內容
Delta Electronics
Outlook intact with HVDC shipping from Q4
Q2 results in-line with latest expectations and milder due to supply constraints
Q226 results were in-line with sales at NT$183.3bn +15% QoQ/+48% YoY driven by cooling component rush orders driving +22% QoQ/+85% YoY growth to infrastructure (34%) while segment OpM was -180bp to 17.9%. Power electronics (53%) was +13% QoQ/+48% YoY to NT96.3bn, with OPM of 20.9%. Automation NT$14.3bn, +8% QoQ / +11% YoY but reversed to op loss of NT$443mn due to memory inflation, while mobility NT$8.2bn, +3% QoQ/-26% YoY with NT$744mn op loss. Blended GMs/OpM declined 140bp/110bp QoQ to 35.6%/16.7% less Q1 benefits from delivered duty on liquid-cooling products and1x reversals, but booked NT$4.4bn non-op gain and FX to lift EPS to NT$9.68 above prior UBS/Street NT$9.36/NT$9.58. The margin impact was less than Delta Thailand as the factory network absorbed component costs/inventory reserves vs. the parent seeing higher margin system and solution sales.
H226 strong outlook intact, with margins gradually improving
We maintain Q326 +15% QoQ led by GB power supply while liquid cooling could be slightly weaker given the high base in Q2. We model GMs mildly rebounding from 35.6% to 36.1%/36.7% in Q3/Q4 as the company qualifies 2nd sources and negotiates to pass through higher costs. Mix shift to server power supply also should support some mild margin recovery. The company stays aggressive on investments, targeting opex growth of +30% YoY to support heavier system design as power architectures grow more complex moving toward HVDC/SST and adds more US field support. It also expects AI demand to sustain next couple years, with capex rising from NT$46.5bn to NT $67.5bn to expand in Taiwan, Thailand and China for AI and fuel cell investment.
Power racks start initial shipments in Q4 and ramp into ASICs in 2027
The HVDC power racks will start MP in 3Q with small shipments starting 4Q mainly on +/-400V for ASIC pushing aggressively for next year up to ⅓ of mix but supply constrained by tight supercapacitors. The company expects milder ramp for NVIDIA's 800VDC as customers are staying more conservative on adoption. We view the milder roadmap on Rubin and Rubin ultra staying with the Oberon NVL72 keeps that option optional for the next 1-2 years. Amid mild HVDC initial ramp, it still stays constructive on its strong pipeline and push for data center deliveries through 2027 to resolve tight compute demand even amid the concerns on hyperscaler cash flows.
Estimates intact - Maintain Buy and NT$2,750
With results and outlook in-line with preview, we fine-tune 2026 from NT$43.0 to NT $42.3 and maintain 2027/28 EPS at NT$67.5/NT$90. Delta's stock has pulled back 36% since May due to Kyber delays / less aggressive HVDC ramp, milder Q2 sales / margin performance and broader AI correction, pulling it back to 22x/17x 2026-27 EPS. We now see better entry with sales ramping in H226, spec upgrades to ASIC power racks and Rubin at 60% higher TDP over Blackwell and margins holding better than feared.
| Highlights (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|
| Revenues | 401,227 | 421,148 | 554,885 | 782,854 | 1,098,155 | 1,419,750 | 1,660,544 | 1,873,873 |
| EBIT (UBS) | 40,950 | 47,652 | 83,932 | 144,948 | 231,901 | 306,335 | 364,979 | 412,298 |
| Net earnings (UBS) | 32,107 | 32,508 | 59,806 | 107,420 | 175,341 | 233,771 | 279,807 | 316,952 |
| EPS (UBS, diluted) (NT$) | 12.36 | 12.52 | 23.02 | 41.35 | 67.50 | 90.00 | 107.72 | 122.02 |
| DPS (net) (NT$) | 9.84 | 6.43 | 7.00 | 11.60 | 21.20 | 33.84 | 45.11 | 54.00 |
| Net (debt) / cash | 51,519 | 65,074 | 104,887 | 113,563 | 130,125 | 216,477 | 306,716 | 421,215 |
| Profitability/valuation | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| EBIT (UBS) margin% | 10.2 | 11.3 | 15.1 | 18.5 | 21.1 | 21.6 | 22.0 | 22.0 |
| ROIC (EBIT)% | 23.9 | 26.6 | 43.9 | 62.9 | 72.5 | 76.1 | 77.7 | 76.8 |
| EV/EBITDA (UBS core) x | 12.7 | 12.9 | 13.8 | 22.3 | 14.3 | 10.7 | 8.8 | 7.5 |
| P/E (UBS, diluted) x | 25.8 | 28.7 | 26.3 | 37.0 | 22.7 | 17.0 | 14.2 | 12.5 |
| Equity FCF (UBS) yield% | 5.2 | 4.2 | 3.3 | 1.1 | 1.9 | 4.5 | 5.4 | 6.6 |
| Dividend yield (net)% | 3.1 | 1.8 | 1.2 | 0.8 | 1.4 | 2.2 | 2.9 | 3.5 |
Source: Company accounts, LSEG Eikon, UBS estimates. Metrics marked as (UBS) have had analyst adjustments applied. Valuations: based on an average share price that year, (E): based on a share price of NT$ 1,530.00 on 30-Jul-2026
Equities
Taiwan
Electric Components & Equipment
| 12-month rating Buy | 12-month rating Buy |
|---|---|
| 12m price target | NT$2,750.00 |
| Price (30 Jul 2026) | NT$1,530 |
| RIC: 2308.TW BBG: 2308 TT | RIC: 2308.TW BBG: 2308 TT |
| Trading data and key metrics | Trading data and key metrics |
| 52-wk range | NT$2,520.00-567.00 |
| Market cap. | NT$3,974b/US$122b |
| Shares o/s | 2,598m (ORD) |
| Free float | 71% |
| Avg. daily volume ('000) | 12,503 |
| Avg. daily value (m) | NT$25,882.1 |
| Common s/h equity (12/26E) | NT$364b |
| P/BV (12/26E) | 10.9x |
| Net debt to EBITDA (12/26E) | NM |
| EPS (UBS, diluted) (NT$) | EPS (UBS, diluted) (NT$) | EPS (UBS, diluted) (NT$) | EPS (UBS, diluted) (NT$) | EPS (UBS, diluted) (NT$) |
|---|---|---|---|---|
| From | To | %ch | Cons. | |
| 12/26E | 43.00 | 41.35 | -4 | 41.10 |
| 12/27E | 67.50 | 67.50 | 0 | 65.82 |
| 12/28E | 90.00 | 90.00 | 0 | 101.41 |
Randy Abrams
Analyst randy.abrams@ubs.com
+886-2-8722 7338
Diana Chang
Analyst diana.chang@ubs.com +886-2-8722 7335
Irene Chang
Associate Analyst irene.chang@ubs.com +886-2-8722 7280
tables and charts
Figure 1: UBS vs. VA Consensus Q126-Q326E and 2025A-28E
| Q126 | Q226 | Q226 | Q226 | Q326E | Q326E | Q326E | 2025 | 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (NT$m) | Actual | Actual | UBSe prior | VA | UBSe | UBSe prior | VA | Actual | UBSe | UBSe prior | VA | UBSe | UBSe prior | VA | UBSe | UBSe prior | VA |
| Revenue | 159,353 | 183,256 | 183,257 | 184,443 | 211,472 | 211,294 | 206,233 | 554,885 | 782,854 | 782,070 | 768,398 | 1,098,155 | 1,097,681 | 1,084,024 | 1,419,750 | 1,422,589 | 1,546,950 |
| - QoQ / YoY | -1.4% | 15.0% | 15.0% | 15.7% | 15.4% | 15.3% | 12.5% | 31.8% | 41.1% | 40.9% | 38.5% | 40.3% | 40.4% | 41.1% | 29.3% | 29.6% | 42.7% |
| Gross profit | 58,961 | 65,308 | 65,902 | 67,758 | 76,358 | 78,527 | 77,116 | 190,157 | 284,489 | 288,288 | 285,464 | 408,437 | 409,134 | 417,270 | 529,624 | 531,464 | 612,082 |
| - Gross margin | 37.0% | 35.6% | 36.0% | 36.7% | 36.1% | 37.2% | 37.4% | 34.3% | 36.3% | 36.9% | 37.2% | 37.2% | 37.3% | 38.5% | 37.3% | 37.4% | 39.6% |
| Operating profit | 28,417 | 30,570 | 33,049 | 34,191 | 40,126 | 42,346 | 40,678 | 83,932 | 144,948 | 150,784 | 146,740 | 231,901 | 232,792 | 237,647 | 306,335 | 307,241 | 372,721 |
| - OP margin | 17.8% | 16.7% | 18.0% | 18.5% | 19.0% | 20.0% | 19.7% | 15.1% | 18.5% | 19.3% | 19.1% | 21.1% | 21.2% | 21.9% | 21.6% | 21.6% | 24.1% |
| Non-op profit | 2,676 | 4,430 | 1,438 | 1,391 | 1,438 | 1,438 | 1,442 | 3,934 | 9,981 | 6,990 | 6,928 | 5,723 | 5,753 | 6,596 | 5,723 | 5,753 | 7,757 |
| Pre-tax profit | 31,093 | 35,000 | 34,487 | 35,582 | 41,564 | 43,784 | 42,120 | 87,866 | 154,930 | 157,774 | 153,668 | 237,624 | 238,545 | 243,693 | 312,058 | 312,993 | 379,773 |
| Tax | -7,258 | -7,831 | -7,415 | -7,528 | -8,936 | -9,414 | -8,990 | -19,930 | -34,189 | -34,495 | -33,399 | -51,089 | -51,287 | -52,405 | -67,093 | -67,294 | -82,019 |
| - Tax rate | 23.3% | 22.4% | 21.5% | 21.2% | 21.5% | 21.5% | 21.3% | 22.7% | 22.1% | 21.9% | 21.7% | 21.5% | 21.5% | 21.5% | 22% | 22% | 22% |
| Minority | -3,279 | -2,033 | -2,750 | -2,845 | -2,779 | -2,779 | -3,421 | -7,828 | -10,868 | -11,585 | -12,972 | -11,194 | -11,932 | -17,287 | -11,194 | -11,932 | -25,355 |
| Net profit | 20,556 | 25,136 | 24,322 | 25,209 | 29,849 | 31,591 | 29,709 | 60,108 | 109,873 | 111,695 | 107,297 | 175,341 | 175,325 | 174,001 | 233,771 | 233,768 | 272,400 |
| EPS (NT$) | $7.91 | $9.68 | $9.36 | $9.58 | $11.49 | $12.16 | $11.37 | $23.14 | $42.30 | $43.00 | $41.31 | $67.50 | $67.50 | $66.99 | 90.00 | 90.00 | 104.87 |
Source: Company data, Visible Alpha, UBS estimates. Note: 2025 EPS is based on the reported number.
Figure 2: Delta revenue growth led by power supply and infrastructure
| Segment Totals (NT$mn) | Q125 | Q225 | Q325 | Q425 | Q126 | Q226E | Q326E | Q426E |
|---|---|---|---|---|---|---|---|---|
| Power Supply | $59,780 | $64,241 | $75,766 | $80,533 | $85,623 | $96,296 | $115,107 | $126,402 |
| QoQ (%) | 0.1% | 7.5% | 17.9% | 6.3% | 6.3% | 12.5% | 19.5% | 9.8% |
| YoY (%) | 27.6% | 16.3% | 21.3% | 34.8% | 43.2% | 49.9% | 51.9% | 57.0% |
| Mobility (EV) | $10,703 | $10,691 | $7,970 | $7,544 | $7,767 | $8,242 | $8,654 | $8,221 |
| QoQ (%) | 4.3% | -0.1% | -25.5% | -5.3% | 3.0% | 6.1% | 5.0% | -5.0% |
| YoY (%) | 1.7% | -5.1% | -29.0% | -26.5% | -27.4% | -22.9% | 8.6% | 9.0% |
| Infrastructure | $34,487 | $35,384 | $53,170 | $59,602 | $51,335 | $62,938 | $70,608 | $75,700 |
| QoQ (%) | 13.0% | 2.6% | 50.3% | 12.1% | -13.9% | 22.6% | 12.2% | 7.2% |
| YoY (%) | 57.0% | 52.8% | 112.2% | 95.4% | 48.9% | 77.9% | 32.8% | 27.0% |
| Automation | $13,950 | $13,526 | $13,412 | $13,934 | $14,378 | $15,513 | $16,836 | $18,183 |
| QoQ (%) | 1.8% | -3.0% | -0.8% | 3.9% | 3.2% | 7.9% | 8.5% | 8.0% |
| YoY (%) | 17.8% | -0.7% | -0.4% | 1.7% | 3.1% | 14.7% | 25.5% | 30.5% |
| Total Revenue (NT$mn) | $118,919 | $124,035 | $150,318 | $161,613 | $159,353 | $183,256 | $211,472 | $228,773 |
| QoQ (%) | 4.1% | 4.3% | 21.2% | 7.5% | -1.4% | 15.0% | 15.4% | 8.2% |
| YoY (%) | 30.3% | 19.9% | 34.0% | 41.5% | 34.0% | 47.7% | 40.7% | 41.6% |
| Sales %by Product | Q125 | Q225 | Q325 | Q425 | Q126 | Q226E | Q326E | Q426E |
| Power Supply | 50% | 52% | 50% | 50% | 54% | 53% | 54% | 55% |
| Mobility (EV) | 9% | 9% | 5% | 5% | 5% | 4% | 4% | 4% |
| Infrastructure | 29% | 29% | 35% | 37% | 32% | 34% | 33% | 33% |
| Automation | 12% | 11% | 9% | 9% | 9% | 8% | 8% | 8% |
| Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Source: Company data, UBS estimat
Figure 3: Delta's GMs light in Q2 but should gradually rebound to 36-37% in H2
| Margin Drivers | Q125 | Q225 | Q325 | Q425 | Q126 | Q226E | Q326E | Q426E |
|---|---|---|---|---|---|---|---|---|
| Total Revenue (NT$mn) (%) | 118,919 4% | 124,035 4% | 150,318 21% | 161,613 8% | 159,353 -1% | 183,256 15% | 211,472 15% | 228,773 8% |
| Sequential change Power Supply | 34.9% | 40.0% | 39.3% | 38.3% | 40.2% | 39.1% | 39.6% | 40.4% |
| Mobility (EV) | 11.0% | 12.0% | 9.0% | 8.0% | 9.0% | 11.0% | 11.0% | 10.0% |
| Infrastructure | 33.7% | 34.7% | 32.9% | 33.1% | 36.1% | 34.2% | 34.3% | 33.7% |
| Automation | 29.6% | 35.3% | 33.0% | 33.9% | 36.7% | 33.3% | 33.7% | 36.0% |
| Delta BlendedGM% | 31.8% | 35.5% | 34.9% | 34.6% | 37.0% | 35.6% | 36.1% | 36.7% |
| Gross Profit (NT$mn) | $37,788 | $44,049 | $52,416 | $55,903 | $58,961 | $65,308 | $76,358 | $83,862 |
| Opex (NT$mn) | -$23,752 | -$25,380 | -$27,607 | -$29,485 | -$30,544 | -$34,738 | -$36,233 | -$38,026 |
| Opex/Sales% | 20.0% | 20.5% | 18.4% | 18.2% | 19.2% | 19.0% | 17.1% | 16.6% |
| DeltaOpM% | 11.8% | 15.1% | 16.5% | 16.3% | 17.8% | 16.7% | 19.0% | 20.0% |
| Operating Profit (NT$mn) | $14,036 | $18,669 | $24,809 | $26,418 | $28,417 | $30,570 | $40,126 | $45,835 |
| Minority Interest | -$1,812 | -$1,386 | -$2,316 | -$2,314 | -$3,279 | -$2,033 | -$2,779 | -$2,777 |
| Net Income | $10,231 | $13,948 | $18,606 | $17,324 | $20,556 | $25,136 | $29,849 | $34,333 |
| EPS (NT$) | $3.94 | $5.37 | $7.16 | $6.67 | $7.91 | $9.68 | $11.49 | $13.22 |
Gross Profit % of Total
Power Supply
Mobility (EV)
Infrastructure
Automation
Q125
55%
3%
31%
11%
Total
100%
Source: Company data, UBS estimates
Q225
58%
3%
28%
11%
100%
Q325
57%
1%
33%
8%
100%
Q425
55%
1%
35%
8%
100%
Q126
58%
1%
31%
9%
100%
Q226E
58%
1%
33%
8%
100%
Q326E
60%
1%
32%
7%
100%
Q426E
61%
1%
30%
8%
100%
| 2024 | 2025 | 2026E | 2027E |
|---|---|---|---|
| $224,270 | $280,320 | $423,428 | $648,001 |
| 9.1% | 25.0% | 51.1% | 53.0% |
| $43,278 | $36,907 | $32,884 | $33,110 |
| 1.5% | -14.7% | -10.9% | 0.7% |
| $100,691 | $182,642 | $260,581 | $344,886 |
| 2.3% | 81.4% | 42.7% | 32.4% |
| $52,638 | $54,822 | $64,911 | $71,091 |
| -3.1% | 4.1% | 18.4% | 9.5% |
| $421,148 | $554,885 | $782,854 | $1,098,155 |
| 5.0% | 31.8% | 41.1% | 40.3% |
| 2024 | 2025 | 2026E | 2027E |
| 53% | 51% | 54% | 59% |
| 10% | 7% | 4% | 3% |
| 24% | 33% | 33% | 31% |
| 12% | 10% | 8% | 6% |
| 100% | 100% | 100% | 100% |
2024
2026E
2025
421,148
5%
35.2%
17.0%
31.6%
35.1%
32.4%
$136,580
-$88,928
21.1%
11.3%
$47,652
-$5,163
$35,229
$13.56
2024
58%
5%
23%
14%
100%
554,885
32%
38.2%
10.2%
33.5%
32.9%
34.3%
$190,157
-$106,224
19.1%
15.1%
$83,932
-$7,828
$60,108
$23.14
2025
56%
2%
32%
9%
100%
782,854
41%
39.8%
10.3%
34.4%
34.9%
36.3%
$284,489
-$139,541
17.8%
18.5%
$144,948
-$10,868
$109,873
$42.30
2026E
59%
1%
32%
8%
100%
2027E
1,098,155
40%
41.1%
12.0%
32.7%
35.9%
37.2%
$408,437
-$176,536
16.1%
21.1%
$231,901
-$11,194
$175,341
$67.50
2027E
65%
1%
28%
6%
100%
Figure 4: Margins expanding as sales accelerates
Source: Company data, UBS estimates
Figure 6: UBS annual P&L for Delta
| Ticker Shares outstanding (mn) | Ticker Shares outstanding (mn) | 2308.TW 2,597.5 | Current Price (NT$) Mkt cap (US$ mn) | Current Price (NT$) Mkt cap (US$ mn) | Current Price (NT$) Mkt cap (US$ mn) | Current Price (NT$) Mkt cap (US$ mn) | $1,530 $134,720 |
|---|---|---|---|---|---|---|---|
| Year | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
| Revenues (NT$ mn) | $384,443 | $401,227 | $421,148 | $554,885 | $782,854 | $1,098,155 | $1,419,750 |
| YoY Growth (%) | 4.4% | 5.0% | 31.8% | 41.1% | 40.3% | 29.3% | |
| Gross profit (NT$mn) | $110,773 | $117,213 | $136,580 | $190,157 | $284,489 | $408,437 | $529,624 |
| GM (%) | 28.8% | 29.2% | 32.4% | 34.3% | 36.3% | 37.2% | 37.3% |
| Operating profit (NT$mn) | $41,439 | $40,950 | $47,652 | $83,932 | $144,948 | $231,901 | $306,335 |
| OPM (%) | 10.8% | 10.2% | 11.3% | 15.1% | 18.5% | 21.1% | 21.6% |
| Net profit (NT$ mn) | $32,666 | $33,393 | $35,229 | $60,108 | $109,873 | $175,341 | $233,771 |
| EPS (NT$) | $12.58 | $12.86 | $13.56 | $23.14 | $42.30 | $67.50 | $90.00 |
| EPS growth (%) | 2% | 5% | 71% | 83% | 60% | 33% | |
| P/E (x) | 121.7 | 119.0 | 112.8 | 66.1 | 36.2 | 22.7 | 17.0 |
| Dividend yield (%) | 0.4% | 0.6% | 0.4% | 0.5% | 0.8% | 1.4% | 2.2% |
| P/B (x) | 17.6 | 16.4 | 14.2 | 12.2 | 9.8 | 7.6 | 5.9 |
| ROE (%) | 17.5% | 16.8% | 15.3% | 22.4% | 30.6% | 35.8% | 36.1% |
Source: Company data, UBS estimates. Note: 2025 EPS is based on the reported number.
Figure 7: UBS cash flow summary for Delta
| Annual (NT$mn) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 21-25 Avg |
|---|---|---|---|---|---|---|---|---|
| Revenue | $314,671 | $384,443 | $401,227 | $421,148 | $554,885 | $782,854 | $1,098,155 | $415,275 |
| Capital spending | $22,815 | $20,981 | $27,778 | $33,430 | $45,950 | $67,500 | $70,875 | $30,191 |
| Capex/revenue (%) | 7.3% | 5.5% | 6.9% | 7.9% | 8.3% | 8.6% | 6.5% | 7.2% |
| Dep and amort | $17,151 | $18,936 | $21,590 | $21,095 | $24,022 | $29,489 | $37,380 | $20,559 |
| Depr/revenue (%) | 5.5% | 4.9% | 5.4% | 5.0% | 4.3% | 3.8% | 3.4% | 5.0% |
| Operating cash flow | $28,319 | $46,529 | $71,086 | $72,895 | $98,474 | $111,093 | $147,780 | $63,461 |
| Free cash flow | $5,505 | $25,548 | $43,309 | $39,465 | $52,525 | $43,593 | $76,905 | $33,270 |
| FCF and Dividends | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E | 2027E | 21-25 Avg |
| FCF / share (NT$) | $2.12 | $9.84 | $16.67 | $15.19 | $20.22 | $16.78 | $29.61 | $12.81 |
| FCF / EV Yield (%) | 0.1% | 0.7% | 1.1% | 1.0% | 1.4% | 1.1% | 2.0% | 0.9% |
| FCF Yield (%) | 0.1% | 0.6% | 1.1% | 1.0% | 1.3% | 1.1% | 1.9% | 0.8% |
| Dividend/share (NT$) | $5.50 | $5.50 | $9.84 | $6.43 | $7.82 | $11.60 | $21.20 | $7.02 |
| Payout rate (%) | 56% | 53% | 78% | 50% | 52% | 50% | 50% | 58% |
| Dividend amount (NT$) | $14,286 | $14,286 | $25,560 | $16,702 | $20,313 | $30,131 | $55,078 | $18,230 |
| Pre-Dividend close (NT$) | $297.50 | $221.50 | $344.50 | $390.50 | $428.00 | $2,230.00 | $1,530.00 | |
| Dividend Yield (%) | 1.8% | 2.5% | 2.9% | 1.6% | 1.8% | 0.5% | 1.4% | 2.1% |
Source: Company data, UBS estimates
Figure 5: Power supply leading the growth
Source: Company data, UBS estimates
Figure 8: Delta valuation vs global peers
| Market cap | 6-month ADT | Price 30-Jul | Price target | EPS (LC$) | Earnings | EPS (LC$) | growth (%) | PE (x) | P/B (x) | P/B (x) | ROE (%) | ROE (%) | Div Yld (%) | Div Yld (%) | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Ticker | (US$m) | (US$m) | (LC$) | (LC$) | Rating | 2026E | 2027E | 2028E | 2026E | 2027E | 2028E | 2027E 2028E | 2026E | 2027E | 2026E | 2027E | 2026E | 2027E |
| Asian IDC power equipment | |||||||||||||||||||
| Delta | 2308.TW | 122,153 | 731 | 1,530 | 2,750 | Buy | 43.00 | 67.50 | 90.00 | 85.8 | 57.0 | 33.3 | 22.7 17.0 | 10.8 | 7.9 | 35.2 | 40.2 | 0.8 | 1.4 |
| Delta Thailand | DELTA.BK | 98,360 | 154 | 264 | - | NC | 1.96 | 3.05 | 4.05 | 28.9 | 55.4 | 32.8 86.7 | 65.3 | 33.1 | 26.4 | 26.4 | 32.6 | 0.2 | 0.3 |
| LiteOn | 2301.TW | 13,605 | 186 | 190 | - | NC | 6.60 | 8.68 | 12.03 | 28.1 | 31.6 | 38.6 21.9 | 15.8 | 4.9 | 4.4 | 16.4 | 21.0 | 2.7 | 3.4 |
| Average Asian IDC | 78,039 | 357 | 43.7 | 32.7 | 16.3 | 12.9 | 26.0 | 31.3 | 1.2 | 1.7 | |||||||||
| Global IDC power equipment | |||||||||||||||||||
| Vertiv | VRT.N | 85,134 | 464 | 223 | 370 | Buy | 6.02 | 8.61 | 10.18 | 65.0 | 43.6 | 18.8 | 23.7 20.2 | 14.4 | 9.8 | 53.2 | 49.1 | 0.1 | 0.1 |
| Eaton | ETN.N | 141,929 | 258 | 362 | 360 | Neutral | 13.41 | 15.38 | 17.12 | 10.7 | 13.6 | 9.0 | 23.5 21.1 | 6.2 | 5.8 | 24.8 | 25.5 | 1.2 | 1.3 |
| Schneider | SCHN.PA | 180,968 | 300 | 276 | 310 | Buy | 9.19 | 11.07 | 12.84 | 13.2 | 20.1 | 15.6 | 21.2 18.9 | 5.5 | 5.0 | 22.9 | 24.8 | 1.8 | 2.0 |
| Average Global IDC | 136,011 | 341 | 22.8 | 20.1 8.7 | 6.9 | 33.6 | 33.1 | 1.0 | 1.1 | ||||||||||
| China IDC power equipment | |||||||||||||||||||
| Kehua | 002335.SZ | 3,066 | 254 | 28 | 46.1 | Buy | 0.91 | 1.39 | 1.76 | 62.9 | 52.7 | 26.4 | 19.9 15.8 | 3.0 | 2.8 | 10.3 | 14.6 | 2.0 | 3.1 |
| Envicool | 002837.SZ | 8,895 | 697 | 47 | 85.0 | Buy | 0.74 | 1.87 | 3.00 | 79.2 | 154.3 | 60.6 | 25.3 15.7 | 14.3 | 9.5 | 24.4 | 45.3 | 0.5 | 1.3 |
| Zhongheng Electronic | 002364.SZ | 2,849 | 313 | 34 | - | NC | 0.28 | 0.43 | 0.69 | n.a. | 51.8 | 62.4 | 80.5 49.6 | 7.5 | 7.1 | 6.4 | 9.1 | 0.2 | 0.5 |
| Kstar | 002518.SZ | 2,558 | 103 | 30 | - | NC | 1.07 | 1.55 | 2.20 | 58 | 44.7 | 41.4 | 19.1 13.5 | 3.5 | 3.2 | 13.2 | 16.7 | 1.1 | 2.1 |
| Hopewind | 603063.SH | 1,858 | 187 | 27 | - | NC | 1.32 | 1.48 | 1.70 | 32 | 12.5 | 14.8 | 18.3 15.9 | 2.5 | 2.1 | 12.3 | 11.8 | 0.6 | - |
| Megmeet | 002851.SZ | 8,363 | 515 | 97 | - | NC | 0.54 | 1.36 | 2.78 | -34 | 150.0 | 104.5 | 71.1 34.8 | 8.6 | 7.2 | 4.5 | 11.0 | 0.1 | 0.1 |
| Honor Electronic | 300870.SZ | 3,770 | 246 | 167 | - | NC | 2.16 | 2.77 | 3.99 | 11 | 28.3 | 44.1 | 60.3 41.8 | 10.6 | 7.4 | 14.0 | 15.0 | 0.3 | 0.4 |
| Average China IDC | 4,703 | 356 | 69.7 | 43.9 7.1 | 5.6 | 12.2 | 15.6 | 0.7 | 1.2 | ||||||||||
| Global Average | 51,808 | 339 | 38.0 | 26.6 9.6 | 7.6 | 20.3 | 24.4 | 0.9 | 1.3 |
Source: Eikon estimates, UBS estimates
Figure 9: Delta has pulled back to 22/17x 2027-28 P/E
Source: Refinitiv Workspace
Figure 10: Delta share price had re-rated sharply until the past two months
Source: Refinitiv Workspace
Delta Electronics (2308.TW)
| Income Statement (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 401,227 | 421,148 | 554,885 | 782,854 | 41.1 | 1,098,155 | 40.3 | 1,419,750 | 1,660,544 | 1,873,873 |
| Gross profit | 117,213 | 136,580 | 190,157 | 284,489 | 49.6 | 408,437 | 43.6 | 529,624 | 621,130 | 701,336 |
| EBITDA (UBS) | 62,540 | 68,746 | 107,954 | 174,437 | 61.6 | 269,281 | 54.4 | 350,669 | 415,559 | 468,600 |
| Depreciation & amortisation | (21,590) | (21,095) | (24,022) | (29,489) | -22.8 | (37,380) | -26.8 | (44,334) | (50,580) | (56,301) |
| EBIT (UBS) | 40,950 | 47,652 | 83,932 | 144,948 | 72.7 | 231,901 | 60.0 | 306,335 | 364,979 | 412,298 |
| Associates & investment income | 5,507 | (916) | 2,131 | 5,845 | 174.3 | 4,040 | -30.9 | 4,040 | 4,040 | 4,040 |
| Other non-operating income | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 | |
| Net interest | 899 | 1,859 | 1,501 | 0 1,683 | 12.1 | 1,683 | 0.0 | 1,683 | 1,683 | 1,683 |
| Exceptionals (incl goodwill) | 1,286 | 2,720 | 302 | 2,453 | NM | 0 | - | 0 | 0 | 0 |
| Pre-tax profit | 48,642 | 51,316 | 87,866 | 154,930 | 76.3 | 237,624 | 53.4 | 312,058 | 370,702 | 418,021 |
| Tax | (9,762) | (10,925) | (19,930) | (34,189) | -71.5 | (51,089) | -49.4 | (67,093) | (79,701) | (89,875) |
| Profit after tax | 38,880 | 40,391 | 67,936 | 120,741 | 77.7 | 186,535 | 54.5 | 244,966 | 291,001 | 328,147 |
| Preference dividends | 0 | 0 (5,163) | 0 (7,828) | 0 (10,868) | - -38.8 | 0 (11,194) | - -3.0 | 0 (11,194) | 0 (11,194) | 0 (11,194) |
| Minorities Extraordinary | (5,488) 0 | 0 | 0 | 0 | - | 0 | - | 0 | 0 | 0 |
| items Net earnings (local | 33,393 | 175,341 | 59.6 | 233,771 | 279,807 | 316,952 | ||||
| GAAP) | 35,229 | 60,108 | 109,873 | 82.8 | ||||||
| Net earnings (UBS) | 32,107 | 32,508 | 59,806 | 107,420 | 79.6 | 175,341 | 63.2 | 233,771 | 279,807 | 316,952 |
| Tax rate (%) | 20.1 | 21.3 | 22.7 | 22.1 | -2.7 | 21.5 | -2.6 | 21.5 | 21.5 | 21.5 |
| Per Share (NT$) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
| EPS (UBS, diluted) | 12.36 | 12.52 | 23.02 | 41.35 | 79.6 | 67.50 | 63.2 | 90.00 | 107.72 | 122.02 |
| EPS (local GAAP, diluted) | 12.86 | 13.56 | 23.14 | 42.30 | 82.8 | 67.50 | 59.6 | 90.00 | 107.72 | 122.02 |
| EPS (UBS, basic) | 12.36 | 12.52 | 23.02 | 41.35 | 67.50 | 63.2 | 90.00 | 107.72 | 122.02 | |
| DPS (net) (NT$) | 9.84 | 79.6 | 21.20 | 82.8 | 33.84 | |||||
| Cash EPS (UBS, diluted) 1 | 20.67 | 6.43 20.64 | 7.00 | 11.60 | 65.7 63.3 | 81.89 | 55.4 | 107.06 | 45.11 127.19 | 54.00 143.69 |
| Book value per share | 76.67 | 88.58 | 32.27 103.20 | 52.71 140.09 | 35.8 | 192.73 | 37.6 | 255.11 | 323.82 | 397.82 |
| Average shares (diluted) | 2,598 | 2,598 | 2,598 | 2,598 | 0.0 | 2,598 | 0.0 | 2,598 | 2,598 | 2,598 |
| Balance Sheet (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | %ch | 12/27E | %ch | 12/28E | 12/29E | 12/30E |
| Cash and equivalents | 92,360 167,598 | 121,793 189,132 | 155,113 240,668 | 168,574 341,820 | 8.7 42.0 | 190,401 482,023 | 12.9 41.0 | 282,545 533,421 | 379,153 621,903 | 500,661 700,981 |
| Other current assets Total current assets | 259,958 | 310,925 | 395,781 | 510,395 | 672,425 | 31.7 | 815,965 | 1,001,057 | 1,201,641 | |
| Net tangible fixed assets | 98,002 | 115,710 | 142,040 | 180,051 | 29.0 26.8 | 213,546 | 18.6 | 243,631 | 271,191 | 293,030 |
| Net intangible fixed assets | 78,544 | 78,783 | 75,326 | 79,093 | 5.0 | 83,047 | 5.0 | 87,200 | 91,560 | 96,138 |
| Investments / other assets | 21,242 | 26,480 | 26,472 | 29,831 | 12.7 | 33,407 | 12.0 | 37,220 | 41,294 | 45,656 |
| 1,002,425 | 25.4 | 1,405,102 | ||||||||
| Total assets | 457,747 | 531,898 | 639,619 | 799,370 | 25.0 | 1,184,016 | 1,636,465 | |||
| Trade payables & other ST liabilities | 122,750 | 139,305 | 207,301 | 277,299 | 33.8 | 349,557 | 26.1 | 374,507 | 421,940 | 465,271 |
| Short term debt Total current liabilities | 3,335 126,085 | 1,918 141,223 | 2,364 209,665 | 2,364 279,663 | 0.0 33.4 | 2,364 351,921 | 0.0 25.8 | 2,364 376,871 | 2,364 424,304 | 2,364 467,635 |
| Long term debt | 37,506 | 54,800 | 47,861 | 52,647 | 10.0 | 57,912 | 10.0 | 63,703 | 70,074 | 77,081 |
| 51,420 | 56,703 | 0.0 | 56,703 | 56,703 | ||||||
| Other long term liabilities | 0 | 56,309 0 | 56,703 | 56,703 | 0.0 | 0 | - | 0 | 0 | 56,703 0 |
| Preferred shares Total liabilities (incl pref shares) | 215,011 | 252,332 | 0 314,230 | 0 389,014 | - 23.8 | 466,536 | 19.9 | 497,278 | 551,081 | 601,419 |
| Common s/h equity | 199,164 | 230,087 | 268,058 | 363,893 | 35.8 | 500,620 | 37.6 | 24,074 | 841,141 | 1,033,360 |
| Minority interests | 43,572 | 49,478 | 57,331 | 46,463 | -19.0 | 35,269 | -24.1 | 662,663 | 12,880 | 1,686 |
| Total liabilities & equity | 457,747 | 531,898 | 639,619 | 799,370 | 25.0 | 1,002,425 | 25.4 | 1,184,016 | 1,405,102 | 1,636,465 |
| 12/24 | 12/25 | 12/26E | 12/27E | %ch | 12/28E | 12/29E | 12/30E | |||
| Cash Flow (NT$m) Net income (before pref divs) | 12/23 33,393 | 35,229 | 60,108 | 109,873 | %ch 82.8 | 175,341 | 59.6 | 233,771 | 279,807 | 316,952 |
| Depreciation & amortisation | 21,590 | 21,095 | 24,022 | 29,489 | 22.8 | 37,380 | 26.8 | 44,334 | 50,580 | 56,301 |
| Net change in working capital | 9,359 | (4,979) | 16,460 | (31,154) | - | (67,945) | -118.1 | (26,447) | (41,050) | (35,747) |
| Other operating | 6,745 | (2,116) | 2,886 | - | 3,004 | 4.1 | 2,799 | 2,598 | 2,403 | |
| Operating cash | 71,086 | 21,550 72,895 | 98,474 | 111,093 | 12.8 | 147,780 | 33.0 | 254,458 | 291,935 | 339,910 |
| flow Tangible capital | (27,778) | (33,430) | (45,950) 0 | (67,500) | -46.9 | (70,875) | -5.0 - | (74,419) | (78,140) | (78,140) |
| expenditure | 0 | 0 | 0 | 0 | 0 | |||||
| Intangible capital expenditure Net (acquisitions) & disposals | 0 (5,541) | 0 (4,739) | (135) | - - | 0 | - | 0 | 0 | ||
| Other investing | (183) | (2,191) | (7,130) | 0 | - | 0 | - | 0 | 0 0 | 0 |
| Investing cash | (33,502) | (40,360) | 0 (67,500) | -26.8 | -5.0 | (78,140) | (78,140) | |||
| flow | (25,560) | (16,702) | (53,214) (20,313) | (30,131) | -48.3 | (70,875) | -82.8 - | (74,419) | (140,263) | |
| Equity dividends paid | 0 | 0 | (55,078) 0 | (87,896) 0 | (117,186) 0 | 0 | ||||
| Share issues / (buybacks) | 0 | 0 | - | 0 | ||||||
| Other financing | 4,755 | (2,967) | 21,774 | 0 | - | 0 | - | 0 | 0 0 | |
| Change in debt & pref shares Financing cash flow | 10,327 (10,478) | 8,552 (11,118) | (10,862) (9,401) | 0 (30,131) | - -220.5 | 0 (55,078) | - -82.8 | 0 (87,896) | 0 (117,186) | (140,263) |
| Cash flow inc/(dec) in cash | 27,107 | 21,417 | 13,462 | -62.5 | 21,827 | 92,143 | 96,609 | 121,507 | ||
| FX / non cash items | 1,947 | 8,015 | 35,859 (2,538) | 0 | - | 0 | 62.1 - | 0 | 0 | 0 |
| Balance sheet inc/(dec) in cash | 29,054 | 29,433 | 13,462 | -59.6 | 21,827 | 92,143 | 121,507 | |||
| 33,320 | 62.1 | 96,609 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts. 1 Cash EPS (UBS, diluted) is calculated using UBS net income adding back depreciation and amortization.
Delta Electronics (2308.TW)
| Valuation (x) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
|---|---|---|---|---|---|---|---|---|
| P/E (local GAAP, diluted) | 24.8 | 26.5 | 26.2 | 36.2 | 22.7 | 17.0 | 14.2 | 12.5 |
| P/E (UBS, diluted) | 25.8 | 28.7 | 26.3 | 37.0 | 22.7 | 17.0 | 14.2 | 12.5 |
| P/CEPS | 15.4 | 17.4 | 18.8 | 29.0 | 18.7 | 14.3 | 12.0 | 10.6 |
| Equity FCF (UBS) yield% | 5.2 | 4.2 | 3.3 | 1.1 | 1.9 | 4.5 | 5.4 | 6.6 |
| Dividend yield (net)% | 3.1 | 1.8 | 1.2 | 0.8 | 1.4 | 2.2 | 2.9 | 3.5 |
| P/BV | 4.2 | 4.1 | 5.9 | 10.9 | 7.9 | 6.0 | 4.7 | 3.8 |
| EV/revenues (core) | 2.0 | 2.1 | 2.7 | 5.0 | 3.5 | 2.6 | 2.2 | 1.9 |
| EV/EBITDA (UBS core) | 12.7 | 12.9 | 13.8 | 22.3 | 14.3 | 10.7 | 8.8 | 7.5 |
| EV/EBIT (core) | 19.3 | 18.6 | 17.8 | 26.8 | 16.6 | 12.3 | 10.0 | 8.6 |
| EV/OpFCF (core) | 13.8 | 14.3 | 15.0 | 24.4 | 15.3 | 11.2 | 9.2 | 7.8 |
| EV/op. invested capital | 4.6 | 5.0 | 7.8 | 16.8 | 12.1 | 9.3 | 7.8 | 6.6 |
| Enterprise value (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Market cap. | 827,149 | 933,285 | 1,574,188 | 3,974,236 | 3,974,236 | 3,974,236 | 3,974,236 | 3,974,236 |
| Net debt (cash) | (51,519) | (65,074) | (104,887) | (113,563) | (130,125) | (216,477) | (306,716) | (421,215) |
| Buy out of minorities | 41,075 | 46,525 | 53,405 | 51,897 | 40,866 | 29,672 | 18,477 | 7,283 |
| Pension provisions/other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total enterprise value | 816,705 | 914,735 | 1,522,706 | 3,912,570 | 3,884,977 | 3,787,431 | 3,685,998 | 3,560,304 |
| Non core assets | (25,159) | (27,940) | (30,879) | (30,879) | (30,879) | (30,879) | (30,879) | (30,879) |
| Core enterprise value | 791,545 | 886,795 | 1,491,826 | 3,881,691 | 3,854,098 | 3,756,552 | 3,655,119 | 3,529,425 |
| Growth (%) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Revenue | 4.4 | 5.0 | 31.8 | 41.1 | 40.3 | 29.3 | 17.0 | 12.8 |
| EBITDA (UBS) | 3.6 | 9.9 | 57.0 | 61.6 | 54.4 | 30.2 | 18.5 | 12.8 |
| EBIT (UBS) | (1.2) | 16.4 | 76.1 | 72.7 | 60.0 | 32.1 | 19.1 | 13.0 |
| EPS (UBS, diluted) | 1.4 | 1.3 | 84.0 | 79.6 | 63.2 | 33.3 | 19.7 | 13.3 |
| Net DPS | 78.9 | (34.7) | 8.9 | 65.7 | 82.8 | 59.6 | 33.3 | 19.7 |
| Margins & Profitability (%) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Gross profit margin | 29.2 | 32.4 | 34.3 | 36.3 | 37.2 | 37.3 | 37.4 | 37.4 |
| EBITDA margin | 15.6 | 16.3 | 19.5 | 22.3 | 24.5 | 24.7 | 25.0 | 25.0 |
| EBIT (UBS) margin | 10.2 | 11.3 | 15.1 | 18.5 | 21.1 | 21.6 | 22.0 | 22.0 |
| Net earnings (UBS) margin | 8.0 | 7.7 | 13.7 | 16.0 | 16.5 | 16.9 | 16.9 | |
| ROIC (EBIT) | 23.9 | 26.6 | 10.8 43.9 | 62.9 | 72.5 | NM | NM | NM |
| 56.7 | 60.1 | |||||||
| ROIC post tax ROE (UBS) | 18.3 16.6 | 20.7 15.1 | 33.7 24.0 | 48.2 34.0 | 40.6 | 59.5 40.2 | 60.8 37.2 | 33.8 |
| Capital structure & Coverage (x) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Net debt / EBITDA | (0.8) | (0.9) | (1.0) | (0.7) | (0.5) | (0.6) | (0.7) | (0.9) |
| Net debt / total equity% | (21.2) | (23.3) | (32.2) | (27.7) | (24.3) | (31.5) | (35.9) | (40.7) |
| Net debt / (net debt + total equity)% | (26.9) | (30.3) | (47.6) | (38.3) | (32.1) | (46.0) | (56.0) | (68.6) |
| Net debt/EV% | (5.0) | (6.4) | (5.6) | (2.8) | (3.1) | (4.6) | (7.1) | (10.2) |
| Capex / depreciation% | 128.7 | 158.5 | 191.3 | NM | 189.6 | 167.9 | 154.5 | 138.8 |
| Capex / revenue% | 6.9 | 7.9 | 8.3 | 8.6 | 6.5 | 5.2 | 4.7 | 4.2 |
| EBIT / net interest | - | - | - | - | - | - | - | - |
| Dividend cover (UBS) | 1.3 | 1.9 | 3.3 | 3.6 | 3.2 | 2.7 | 2.4 | 2.3 |
| Div. payout ratio (UBS)% | 79.6 | 51.4 | 30.4 | 28.1 | 31.4 | 37.6 | 41.9 | 44.3 |
| Revenues by division (NT$m) | 12/23 | 12/24 | 12/25 | 12/26E | 12/27E | 12/28E | 12/29E | 12/30E |
| Power supply | 248,257 | 224,270 | 280,320 | 423,428 | 648,001 | 881,199 | 1,059,573 | 1,222,476 |
| Passive components | 37,477 | 45,611 | 46,581 | 51,865 | 55,466 | 61,013 | 67,114 | 73,825 |
| IA | 39,600 | 34,736 | 36,712 | 47,548 | 51,651 | 56,816 | 60,794 | 63,833 |
| Networking | 26,121 | 26,381 | 28,584 | 36,718 | 42,057 | 45,422 | 49,055 | 52,980 |
| Others | 49,772 | 90,150 | 162,688 | 223,295 | 300,980 | 375,300 | 424,008 | 460,759 |
| Total | 401,227 | 421,148 | 554,885 | 782,854 | 1,098,155 | 1,419,750 | 1,660,544 | 1,873,873 |
| EBIT (UBS) by division (NT$m) | 12/23 | 12/24 | 12/25 | 12/28E | 364,979 | 12/30E | ||
| Component & Systems | 40,950 | 47,652 | 83,932 | 12/26E 144,948 | 12/27E 231,901 | 306,335 | 12/29E | 412,298 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 40,950 | 47,652 | 83,932 | 144,948 | 231,901 | 306,335 | 364,979 | 412,298 |
Source: Company accounts, UBS estimates. (UBS) metrics use reported figures which have been adjusted by UBS analysts.
Forecast returns
| Forecast price appreciation | 79.7% |
|---|---|
| Forecast dividend yield | 0.8% |
| Forecast stock return | 80.5% |
| Market return assumption | 6.3% |
| Forecast excess return | 74.2% |
Company Description
Delta Electronics provides computer switching power supply solutions, as well as video display and electronics components, for computers, smartphones, telecom and industrial products. Founded in 1971, the firm has production bases in Taiwan, China, Thailand and India. In 2023, its power electronics, infrastructure and automation segments contributed 62%, 25% and 13% of revenue, respectively.
UBS EPS and Consensus EPS
The UBS EPS is an adjusted diluted EPS metric. It is calculated using the UBS analyst's interpretation of earnings suitable for valuation purposes divided by the diluted number of shares. This may differ to the way the consensus EPS metric has been calculated.
Valuation Method and Risk Statement
We base our price target on PE multiple valuation.
Delta's businesses include SPS and components for a variety of end-applications, video displays and data networking subsystem and system products. Any changes in these endmarkets could affect our forecasts for Delta. Investment risk could increase/decrease on any deviation from our expectations for end-market demand and competition.
Downside risks for Delta include: severe supply chain constraints; weaker-than-expected PC/ server demand; a slower-than-expected IA recovery; and a slower ramp of 5G in 2022.
Quantitative Research Review
UBS Global Research publishes a quantitative assessment of its analysts' responses to certain questions about the likelihood of an occurrence of a number of short term factors in a product known as the 'Quantitative Research Review'. The views for this month can be found below. Views contained in this assessment on a particular stock reflect only the views on those short term factors which are a different timeframe to the 12-month timeframe reflected in any equity rating set out in this note. For previous responses please make reference to (i) previous UBS Global Research reports; and (ii) where no applicable research report was published that month, the Quantitative Research Review which can be found at https://neo.ubs.com/quantitative, or contact your UBS sales representative for access to the report or the Quantitative Research Team on ubs-quant-answers@ubs.com. A consolidated report which contains all responses is also available and again you should contact your UBS sales representative for details and pricing or the Quantitative Research Team on the email above.
Delta Electronics
| Question | Response |
|---|---|
| 1. Is the industry structure facing the firm likely to improve or deteriorate over the next six months? Rate on a scale of 1-5 (1 = getting worse, 3 = no change, 5 = getting better, N/A = no view) | 4 |
| 2. Is the regulatory/government environment facing the firm likely to improve or deteriorate over the next six months? Rate on a scale of 1-5 (1 = getting tougher 3 = no change, 5 = getting better, N/A = no view) | 3 |
| 3. Over the last 3-6 months in broad terms have things been improving/no change/getting worse for this stock? Rate on a scale of 1-5 (1 = getting a lot worse, 3 = not much change, 5 = getting a lot better, N/A = no view) | 5 |
| 4. Relative to the current CONSENSUS EPS forecast, is the next company EPS update likely to lead to: (1 = negative surprise vs consensus, 3 = in-line with consensus, 5 = positive surprise vs consensus expectations, N/A = no view) | 4 |
| 5. What's driving the difference? | |
| 6. Relative to YOUR current earnings forecast, is there relatively greater risk at the next earnings result of:(1 = downside skew risk to earnings, 3 = equal upside or downside risk to earnings, 5 = upside skew risk to earnings, N/A = no view) | 4 |
| 7. What's driving the difference? | |
| 8. Is there an upcoming catalyst for the company over the next three months? | No Catalyst |
| 9. Is there an actual or approximate date for the catalyst? | |
| 10. Is the catalyst date an actual or approximate date? | |
| 11. What is the catalyst? |
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