PDF 原檔：報告_BofA_台達電2308_20260730_original.pdf
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| 檔名 | size | 分類 | 親眼所見內容 |
|---|---|---|---|
260730_ml_delta_001.png |
47KB | 真資料圖 | Exhibit 5：台達電歷史本益比走勢圖（附 ±1 SD 與均值），Jan-12 至 Jan-26 |
260730_ml_delta_002.png |
31KB | 真資料圖 | Exhibit 6：台達電歷史股價淨值比走勢圖（附 ±1 SD 與均值），Jan-07 至 Jan-26 |
260730_ml_delta_003.png |
63KB | 真資料圖 | DLTEF 股價與歷次 Price Objective（PO）沿革圖，標示歷次 PO 調整日期與數字（自早期 NT$430 逐步上調至 2026-04-30 PO NT$2,500） |
原始內容
Delta Electronics Inc.
2Q26 margin miss; solid outlook/tone on sales growth, HVDC, capex; reiterate Buy
Reiterate Rating: BUY | PO: 2,500 TWD | Price: 1,530 TWD
2Q margin miss: higher material/depreciation costs, opex
Delta ' s 2Q26 OP (+8% QoQ, +64% YoY) was 7%/9% below BofAe/consensus. GM/OPM of 35.6%/16.7% was below BofAe of 36.4%/18.4% and the consensus of 36.4%/18.5%. We attribute the lighter margins to higher raw material costs, accelerated depreciation (following the shortening of AI-related equipment ' s depreciation period to three years from five years effective from April), ongoing R&D efforts (+16% QoQ, +33% YoY; 8.6% of 2Q26 sales), and operating losses in both Mobility and Automation businesses.
Higher 2026 sales growth %; HVDC schedule unchanged
CEO expects (1) 2H26 sales to exceed 1H26 levels and (2) higher 2026 sales growth (BofAe: +38% YoY) vs. 2025 (+32% YoY). For HVDC, management reiterated the same view as indicated in 1Q26 that (1) in 2H26, ± 400VDC deployment should begin earlier than 800VDC and (2) HVDC mass shipments should be in 2027. Management also remains confident in maintaining its leading AI power market share. For liquid cooling, management expects contribution at over 12% of 2026 sales, vs. 10% in 2025.
NT$70bn capex in 2026 for ongoing capacity expansion
CEO expects capex to reach NT$70bn in 2026 with ongoing capacity expansion in Taiwan/China/Thailand/US to fulfill strong demand in AI and energy infrastructure. He also indicated global CSPs ' high confidence and commitment in AI investment.
Maintain NT$2,500 PO; reiterate Buy: AI power leader
We lift our 2026-28E EPS by 1% each (Exhibit 1) to reflect 2Q26 results (Exhibit 3) and the latest company outlook/guidance. We maintain our PO at NT$2,500 (31x 4Q273Q28E EPS). We reiterate Buy in view of Delta ' s AI power-supply dominance to benefit from content growth, strong customization/R&D capability, and ongoing margin expansion.
| Estimates (Dec) (NT$) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Net Income (Adjusted - mn) | 35,229 | 60,108 | 105,589 | 158,553 | 224,344 |
| EPS | 13.56 | 23.14 | 40.65 | 61.04 | 86.37 |
| EPS Change (YoY) | 5.5% | 70.6% | 75.7% | 50.2% | 41.5% |
| Consensus EPS (Visible Alpha) | 41.70 | 68.23 | 109.32 | ||
| Dividend / Share | 7.00 | 11.60 | 20.32 | 30.52 | 43.18 |
| Free Cash Flow / Share | 15.19 | 20.31 | 11.13 | 25.57 | 42.16 |
| Valuation (Dec) | |||||
| P/E | 112.8x | 66.1x | 37.6x | 25.1x | 17.7x |
| Dividend Yield | 0.5% | 0.8% | 1.3% | 2.0% | 2.8% |
| EV / EBITDA* | 57.4x | 36.6x | 24.1x | 16.0x | 11.4x |
| Free Cash Flow Yield* | 1.0% | 1.3% | 0.7% | 1.7% | 2.8% |
| * For full definitions of iQ method SM measures, see page 8. |
This research report provides general information only. No part of this report may be used or reproduced or quoted in any manner whatsoever in Taiwan by the press or other persons without the express written consent of BofA Securities.
>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.
Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.
BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
Refer to important disclosures on page 9 to 11. Analyst Certification on page 6. Price
30 July 2026
Equity
| Key Changes (NT$) | Previous | Current |
|---|---|---|
| 2026E EPS | 40.13 | 40.65 |
| 2027E EPS | 60.28 | 61.04 |
| 2028E EPS | 85.49 | 86.37 |
| 2026E EBITDA (m) | 163,391.2 | 163,606 |
| 2027E EBITDA (m) | 235,304.4 | 246,051 |
| 2028E EBITDA (m) | 329,441.1 | 345,382 |
Robert Cheng >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3731 robert.cheng@bofa.com
Doris Kao >> Research Analyst Merrill Lynch (Taiwan) +886 2 2376 3722 doris.kao@bofa.com
Katherine Zhu >> Research Analyst Merrill Lynch (Hong Kong) +852 3508 3374
kexin.zhu@bofa.com
Stock Data
| Price | 1,530 TWD |
|---|---|
| Price Objective | 2,500 TWD |
| Date Established | 30-Apr-2026 |
| Investment Opinion | C-1-7 |
| 52-Week Range | 520.00 TWD-2,585 |
| TWD | |
| Mrkt Val / Shares Out (mn) | 122,753 USD / 2,597.5 |
| Market Value (mn) | 3,974,241 TWD |
| Average Daily Value (mn) | 601.22 USD |
| Free Float | 68.8% |
| BofA Ticker / Exchange | DLTEF / TAI |
| Bloomberg / Reuters | 2308 TT / 2308.TW |
| ROE (2026E) | 29.1% |
| Net Dbt to Eqty (Dec-2025A) | -34.6% |
Acronyms, see Exhibit 8
iQ profile SM Delta Electronics Inc.
| Key Income Statement Data (Dec) | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| (NT$ Millions) | |||||
| Sales | 421,148 | 554,885 | 767,689 | 1,036,777 | 1,446,693 |
| Gross Profit | 136,580 | 190,157 | 279,732 | 385,540 | 544,198 |
| Sell General &Admin Expense | (47,354) | (57,482) | (74,717) | (85,764) | (116,806) |
| Operating Profit | 47,652 | 83,932 | 138,142 | 212,022 | 304,569 |
| Net Interest &Other Income | 3,664 | 3,934 | 12,870 | 12,067 | 12,064 |
| Associates | NA | NA | NA | NA | NA |
| Pretax Income | 51,316 | 87,866 | 151,011 | 224,090 | 316,632 |
| Tax (expense) / Benefit | (10,925) | (19,930) | (33,800) | (49,800) | (70,348) |
| Net Income (Adjusted) | 35,229 | 60,108 | 105,589 | 158,553 | 224,344 |
| Average Fully Diluted Shares Outstanding | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 |
| Key Cash Flow Statement Data | |||||
| Net Income | 35,229 | 60,108 | 105,589 | 158,553 | 224,344 |
| Depreciation &Amortization | 21,095 | 24,022 | 25,464 | 34,029 | 40,813 |
| Change in Working Capital | (33,380) | (45,580) | (32,147) | (56,164) | (85,633) |
| Deferred Taxation Charge | NA | NA | NA | NA | NA |
| Other Adjustments, Net | 49,952 | 59,924 | 0 | 0 | 0 |
| Cash Flow from Operations | 72,895 | 98,474 | 98,907 | 136,417 | 179,524 |
| Capital Expenditure | (33,430) | (45,722) | (70,000) | (70,000) | (70,000) |
| (Acquisition) / Disposal of Investments | (213) | (135) | 0 | 0 | 0 |
| Other Cash Inflow / (Outflow) | (6,717) | (7,357) | 0 | 0 | 0 |
| Cash Flow from Investing | (40,360) | (53,214) | (70,000) | (70,000) | (70,000) |
| Shares Issue / (Repurchase) | 0 | 0 | 0 | 0 | 0 |
| Cost of Dividends Paid | (16,702) | (18,183) | (30,132) | (52,795) | (79,276) |
| Cash Flow from Financing | (11,118) | (9,401) | (30,132) | (52,795) | (79,276) |
| Free Cash Flow | 39,465 | 52,752 | 28,907 | 66,417 | 109,524 |
| Net Debt | (76,840) | (112,603) | (111,378) | (125,001) | (155,248) |
| Change in Net Debt | (22,868) | (21,984) | 1,225 | (13,623) | (30,247) |
| Key Balance Sheet Data | |||||
| Property, Plant &Equipment | 115,710 | 142,040 | 186,576 | 222,547 | 251,734 |
| Other Non-Current Assets | 105,262 | 101,798 | 101,798 | 101,798 | 101,798 |
| Trade Receivables | 89,921 | 121,717 | 146,401 | 197,717 | 275,889 |
| Cash &Equivalents | 117,459 | 151,172 | 149,947 | 163,570 | 193,817 |
| Other Current Assets | 103,545 | 122,892 | 145,390 | 186,875 | 250,713 |
| Total Assets | 531,898 | 639,619 | 730,112 | 872,507 | 1,073,951 |
| Long-Term Debt | 32,209 | 21,143 | 21,143 | 21,143 | 21,143 |
| Other Non-Current Liabilities | 67,840 | 83,422 | 83,422 | 83,422 | 83,422 |
| Short-Term Debt | 8,410 | 17,426 | 17,426 | 17,426 | 17,426 |
| Other Current Liabilities | 143,873 | 192,239 | 207,274 | 243,911 | 300,288 |
| Total Liabilities | 252,332 | 314,230 | 329,265 | 365,902 | 422,279 |
| Total Equity | 279,565 | 325,389 | 400,847 | 506,605 | 651,672 |
| Total Equity &Liabilities | 531,898 | 639,619 | 730,112 | 872,507 | 1,073,951 |
| iQ method SM - Bus Performance* | |||||
| Return On Capital Employed | 11.1% | 16.2% | 22.7% | 29.2% | 34.2% |
| Return On Equity | 13.5% | 19.9% | 29.1% | 34.9% | 38.7% |
| Operating Margin | 11.3% | 15.1% | 18.0% | 20.5% | 21.1% |
| EBITDA Margin | 16.3% | 19.5% | 21.3% | 23.7% | 23.9% |
| iQ method SM - Quality of Earnings* | |||||
| Cash Realization Ratio | 2.1x | 1.6x | 0.9x | 0.9x | 0.8x |
| Asset Replacement Ratio | 1.6x | 1.9x | 2.7x | 2.1x | 1.7x |
| Tax Rate (Reported) | 21.3% | 22.7% | 22.4% | 22.2% | 22.2% |
| Net Debt-to-Equity Ratio | -27.5% | -34.6% | -27.8% | -24.7% | -23.8% |
| Interest Cover | 30.8x | 37.9x | NM | NM | NM |
Key Metrics
- For full definitions of iQ method SM measures, see page 8.
Company Sector
Connectors, Passive Components & Distribution
Company Description
Delta Electronics is engaged in four business segments: (1) Power Electronics: power-supply components for PC/server/consumer electronics, fans and thermal systems, passive component, (2) Mobility: EV powertrain system, (3) Automation: industrial automation and building automation, and (4) Infrastructure: ICT infrastructure (telecom power, datacenter solution, networking), EIS infrastructure (off-board EV charger, renewable energy & energy storage system), display.
Investment Rationale
We assign a Buy rating to Delta in view of long-term positive growth from multiple drivers, including AI, cloud/datacenter, and EV. We expect double-digit sales CAGR in 2026-28E, driven by multiple-year AI business momentum and leading position.
Stock Data
Price to Book Value
9.9x
Exhibit 1: We lift our 2026-28E EPS by 1% each
Estimate revision summary, 2026-28E
| BofA 2026E | BofA 2026E | BofA 2026E | BofA 2027E | BofA 2027E | BofA 2027E | BofA 2028E | BofA 2028E | BofA 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Diff (%) | New | Old | Diff (%) | New | Old | Diff (%) |
| Total sales | 767,689 | 751,585 | 2% | 1,036,777 | 1,002,653 | 3% | 1,446,693 | 1,409,178 | 3% |
| Gross profit | 279,732 | 274,871 | 2% | 385,540 | 370,879 | 4% | 544,198 | 526,840 | 3% |
| Operating profit | 138,142 | 137,927 | 0% | 212,022 | 203,185 | 4% | 304,569 | 293,445 | 4% |
| Pretax income | 151,011 | 147,274 | 3% | 224,090 | 217,762 | 3% | 316,632 | 309,018 | 2% |
| Net income | 105,589 | 104,237 | 1% | 158,553 | 156,589 | 1% | 224,344 | 222,062 | 1% |
| EPS (NT$) | 40.65 | 40.13 | 1% | 61.04 | 60.28 | 1% | 86.37 | 85.49 | 1% |
| Margins | |||||||||
| Gross margin | 36.4% | 36.6% | -0.1 ppt | 37.2% | 37.0% | 0.2 ppt | 37.6% | 37.4% | 0.2 ppt |
| Operating margin | 18.0% | 18.4% | -0.4 ppt | 20.5% | 20.3% | 0.2 ppt | 21.1% | 20.8% | 0.2 ppt |
| Pretax margin | 19.7% | 19.6% | 0.1 ppt | 21.6% | 21.7% | -0.1 ppt | 21.9% | 21.9% | 0.0 ppt |
| Net margin | 13.8% | 13.9% | -0.1 ppt | 15.3% | 15.6% | -0.3 ppt | 15.5% | 15.8% | -0.3 ppt |
Source: BofA Global Research estimates. Diff: difference
Exhibit 2: Our 2026-28E earnings are 1-12% below consensus
BofAe vs. consensus, 2026-28E
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) | BofAe | Consensus | Diff (%) |
| Total sales | 767,689 | 768,873 | 0% | 1,036,777 | 1,080,241 | -4% | 1,446,693 | 1,484,537 | -3% |
| Gross profit | 279,732 | 283,260 | -1% | 385,540 | 408,969 | -6% | 544,198 | 571,027 | -5% |
| Operating profit | 138,142 | 146,337 | -6% | 212,022 | 231,685 | -8% | 304,569 | 345,130 | -12% |
| Pretax income | 151,011 | 153,771 | -2% | 224,090 | 239,576 | -6% | 316,632 | 360,397 | -12% |
| Net income | 105,589 | 106,805 | -1% | 158,553 | 170,819 | -7% | 224,344 | 253,963 | -12% |
| EPS (NT$) | 40.65 | 41.12 | -1% | 61.04 | 65.76 | -7% | 86.37 | 97.77 | -12% |
| Margins | |||||||||
| Gross margin | 36.4% | 36.8% | -0.4 ppt | 37.2% | 37.9% | -0.7 ppt | 37.6% | 38.5% | -0.8 ppt |
| Operating margin | 18.0% | 19.0% | -1.0 ppt | 20.5% | 21.4% | -1.0 ppt | 21.1% | 23.2% | -2.2 ppt |
| Pretax margin | 19.7% | 20.0% | -0.3 ppt | 21.6% | 22.2% | -0.6 ppt | 21.9% | 24.3% | -2.4 ppt |
| Net margin | 13.8% | 13.9% | -0.1 ppt | 15.3% | 15.8% | -0.5 ppt | 15.5% | 17.1% | -1.6 ppt |
Source: BofA Global Research estimates, Bloomberg consensus. Consensus based on data before 2Q26 results announcement. Diff: difference
Exhibit 3: Delta's 2Q26 operating profit was 7%/9% below BofAe/consensus; net income was 1% below BofAe but 1% above consensus
Delta's 2Q26 results summary
| NT$mn | 2Q26 | QoQ% | YoY% | BofAe | Diff (%) | Consensus | Diff (%) | 1Q26 | 2Q25 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 183,256 | 15% | 48% | 178,871 | 2% | 182,833 | 0% | 159,353 | 124,035 |
| Gross profit | 65,308 | 11% | 48% | 65,042 | 0% | 66,610 | -2% | 58,961 | 44,049 |
| Operating Income | 30,570 | 8% | 64% | 32,845 | -7% | 33,766 | -9% | 28,417 | 18,669 |
| Pre-tax Income | 35,000 | 13% | 79% | 34,749 | 1% | 34,915 | 0% | 31,093 | 19,571 |
| Net Income | 25,136 | 22% | 80% | 25,488 | -1% | 24,846 | 1% | 20,556 | 13,948 |
| EPS (NT$) | 9.68 | 22% | 80% | 9.81 | -1% | 9.57 | 1% | 7.91 | 5.37 |
| Margins | |||||||||
| Gross margin | 35.6% | -1.4 ppt | 0.1 ppt | 36.4% | -0.7 ppt | 36.4% | -0.8 ppt | 37.0% | 35.5% |
| Operating margin | 16.7% | -1.2 ppt | 1.6 ppt | 18.4% | -1.7 ppt | 18.5% | -1.8 ppt | 17.8% | 15.1% |
| Pre-tax margin | 19.1% | -0.4 ppt | 3.3 ppt | 19.4% | -0.3 ppt | 19.1% | 0.0 ppt | 19.5% | 15.8% |
| Net margin | 13.7% | 0.8 ppt | 2.5 ppt | 14.2% | -0.5 ppt | 13.6% | 0.1 ppt | 12.9% | 11.2% |
Source: BofA Global Research estimates, company data, Bloomberg consensus. Consensus based on data before 2Q26 results announcement. Diff: difference
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Exhibit 4: Delta Thailand's sales/earnings were 35%/23% of Delta's consolidated sales/earnings in 2Q26 vs. 39%/44% in 1Q26
Delta Thailand (DET) contribution to Delta, 1Q25-2Q26
| %of DET to Delta | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 |
|---|---|---|---|---|---|---|
| Revenue | 35% | 33% | 33% | 34% | 39% | 35% |
| Gross profit | 28% | 23% | 27% | 28% | 33% | 26% |
| Operating profit | 39% | 26% | 32% | 32% | 37% | 22% |
| Pretax profit | 39% | 26% | 30% | 32% | 35% | 21% |
| Net income | 52% | 31% | 37% | 40% | 44% | 23% |
| DET (NT$bn) | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 |
| Revenue | 41.4 | 41.4 | 49.3 | 55.7 | 61.4 | 63.3 |
| Gross profit | 10.6 | 10.3 | 14.0 | 15.9 | 19.5 | 17.0 |
| Operating profit | 5.5 | 4.9 | 8.0 | 8.3 | 10.4 | 6.6 |
| Pretax profit | 6.1 | 5.0 | 8.2 | 8.2 | 10.9 | 7.2 |
| Net income | 5.3 | 4.3 | 6.9 | 7.0 | 9.1 | 5.9 |
| Margin% | ||||||
| GM | 25.6% | 25.0% | 28.3% | 28.6% | 31.7% | 26.8% |
| OPM | 13.4% | 11.9% | 16.2% | 15.0% | 16.9% | 10.4% |
| Pretax margin | 14.7% | 12.1% | 16.6% | 14.7% | 17.7% | 11.4% |
| Net margin | 12.8% | 10.4% | 14.0% | 12.6% | 14.8% | 9.3% |
Source: BofA Global Research, company data, Bloomberg. Market cap as of 2026/07/30
Exhibit 5: Delta's P/E average since 2012 is 17.3x
Historical P/E and -1/+1 standard deviation since 2012
Source:
BofA Global Research estimates, company data, TEJ, Bloomberg
Exhibit 7: We model Delta's 2026-28 sales/earnings CAGR at 37%/46% Delta's quarterly earnings summary, 2025-28E
| NT$mn | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 1Q28E | 2Q28E | 3Q28E | 4Q28E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 159,353 | 183,256 | 205,720 | 219,360 | 218,355 | 239,835 | 273,877 | 304,710 | 303,884 | 340,233 | 386,694 | 415,882 | 554,885 | 767,689 | 1,036,777 | 1,446,693 |
| Gross profit | 58,961 | 65,308 | 74,972 | 80,491 | 80,614 | 89,103 | 102,348 | 113,475 | 113,076 | 127,839 | 146,480 | 156,803 | 190,157 | 279,732 | 385,540 | 544,198 |
| Operating profit | 28,417 | 30,570 | 38,149 | 41,006 | 41,092 | 49,050 | 57,158 | 64,722 | 64,090 | 71,700 | 82,676 | 86,103 | 83,932 | 138,142 | 212,022 | 304,569 |
| Pre-tax profit | 31,093 | 35,000 | 41,024 | 43,895 | 43,490 | 51,940 | 61,046 | 67,613 | 66,482 | 74,590 | 86,566 | 88,994 | 87,866 | 151,011 | 224,090 | 316,632 |
| Net profit | 20,556 | 25,136 | 29,240 | 30,658 | 28,994 | 37,852 | 44,007 | 47,699 | 44,938 | 54,405 | 62,430 | 62,570 | 60,108 | 105,589 | 158,553 | 224,344 |
| EPS (NT$) | 7.91 | 9.68 | 11.26 | 11.80 | 11.16 | 14.57 | 16.94 | 18.36 | 17.30 | 20.94 | 24.03 | 24.09 | 23.14 | 40.65 | 61.04 | 86.37 |
| Margin% | ||||||||||||||||
| Gross margin | 37.0% | 35.6% | 36.4% | 36.7% | 36.9% | 37.2% | 37.4% | 37.2% | 37.2% | 37.6% | 37.9% | 37.7% | 34.3% | 36.4% | 37.2% | 37.6% |
| Operating margin | 17.8% | 16.7% | 18.5% | 18.7% | 18.8% | 20.5% | 20.9% | 21.2% | 21.1% | 21.1% | 21.4% | 20.7% | 15.1% | 18.0% | 20.5% | 21.1% |
| Pre-tax margin | 19.5% | 19.1% | 19.9% | 20.0% | 19.9% | 21.7% | 22.3% | 22.2% | 21.9% | 21.9% | 22.4% | 21.4% | 15.8% | 19.7% | 21.6% | 21.9% |
| Net margin | 12.9% | 13.7% | 14.2% | 14.0% | 13.3% | 15.8% | 16.1% | 15.7% | 14.8% | 16.0% | 16.1% | 15.0% | 10.8% | 13.8% | 15.3% | 15.5% |
| QoQ% | ||||||||||||||||
| Sales | -1% | 15% | 12% | 7% | 0% | 10% | 14% | 11% | 0% | 12% | 14% | 8% | ||||
| Gross profit | 5% | 11% | 15% | 7% | 0% | 11% | 15% | 11% | 0% | 13% | 15% | 7% | ||||
| Operating profit | 8% | 8% | 25% | 7% | 0% | 19% | 17% | 13% | -1% | 12% | 15% | 4% | ||||
| Pre-tax profit | 21% | 13% | 17% | 7% | -1% | 19% | 18% | 11% | -2% | 12% | 16% | 3% | ||||
| Net profit | 19% | 22% | 16% | 5% | -5% | 31% | 16% | 8% | -6% | 21% | 15% | 0% |
| Company | Ticker | Market cap (US$mn) | Delta's holding% | Holding value (US$mn) |
|---|---|---|---|---|
| Delta | 2308 TT | 122,330 | ||
| DET | Delta TB | 99,078 | 62.66% | 67,314 |
| Delta (NT$bn) | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 |
|---|---|---|---|---|---|---|
| Revenue | 118.9 | 124.0 | 150.3 | 161.6 | 159.4 | 183.3 |
| Gross profit | 37.8 | 44.0 | 52.4 | 55.9 | 59.0 | 65.3 |
| Operating profit | 14.0 | 18.7 | 24.8 | 26.4 | 28.4 | 30.6 |
| Pretax profit | 15.7 | 19.6 | 27.0 | 25.6 | 31.1 | 35.0 |
| Net income | 10.2 | 13.9 | 18.6 | 17.3 | 20.6 | 25.1 |
| Margin% | ||||||
| GM | 31.8% | 35.5% | 34.9% | 34.6% | 37.0% | 35.6% |
| OPM | 11.8% | 15.1% | 16.5% | 16.3% | 17.8% | 16.7% |
| Pretax margin | 13.2% | 15.8% | 18.0% | 15.9% | 19.5% | 19.1% |
| Net margin | 8.6% | 11.2% | 12.4% | 10.7% | 12.9% | 13.7% |
BofA GLOBAL RESEARCH
Exhibit 6: Delta's P/B average since 2007 is 2.6x
Historical P/B and -1/+1 standard deviation since 2007
Source: BofA Global Research estimates, company data, TEJ, Bloomberg
BofA GLOBAL RESEARCH
Exhibit 7: We model Delta's 2026-28 sales/earnings CAGR at 37%/46%
Delta's quarterly earnings summary, 2025-28E
| YoY% Sales | 34% | 48% | 37% | 36% | 37% | 31% | 33% | 39% | 39% | 42% | 41% | 36% | 32% | 38% | 35% | 40% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit | 56% | 48% | 43% | 44% | 37% | 36% | 37% | 41% | 40% | 43% | 43% | 38% | 39% | 47% | 38% | 41% |
| Operating profit | 102% | 64% | 54% | 55% | 45% | 60% | 50% | 58% | 56% | 46% | 45% | 33% | 76% | 65% | 53% | 44% |
| Pre-tax profit | 99% | 79% | 52% | 71% | 40% | 48% | 49% | 54% | 53% | 44% | 42% | 32% | 71% | 72% | 48% | 41% |
| Net profit | 101% | 80% | 57% | 77% | 41% | 51% | 51% | 56% | 55% | 44% | 42% | 31% | 71% | 76% | 50% | 41% |
Source: BofA Global Research estimates, company data
Exhibit 8: Acronyms
Acronyms and their corresponding full forms
| Acronym | Acronym | Acronym | |||
|---|---|---|---|---|---|
| AI | Artificial Intelligence | GM | Gross Margin | PO | Price Objective |
| CAGR | Compound Annual Growth Rate | HVDC | High Voltage Direct Current | ppt | Percentage Point |
| Capex | Capital Expenditure | IA | Industrial Automation | R&D | Research &Development |
| CEO | Chief Executive Officer | NT$ | New Taiwan Dollar | RHS | Right Hand Side |
| CSP | Cloud Service Provider | OP | Operating Profit | S.D. | Standard Deviation |
| Depre. | Depreciation | OPEX | Operating Expense | US | United States |
| Diff | Difference | OPM | Operating Profit Margin | US$ | US Dollar |
| EPS | Earnings Per Share | P/B | Price to Book Value Ratio | VDC | Voltage Direct Current |
| EV | Electric Vehicle | P/E | Price to Earnings Ratio |
Source:
BofA Global Research
BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH
Price objective basis & risk
Delta Electronics Inc. (DLTEF)
Our PO of NT$2,500 is based on 31x 4Q27-3Q28E EPS, which is 3.0 standard deviations above Delta's average trading P/E since 2012. We believe the P/E multiple is justified, given (1) continuous strength and leading position in server power-supply and power choke business, (2) content/value growth with broader product offering in AI (artificial intelligence) business, (3) rising cooling sales by targeting top CSPs' customized projects, and (4) ongoing margin expansion.
The upside risks to our PO are (1) stronger-than-expected server/datacenter demand, (2) faster-than-expected IA recovery, and (3) faster-than-expected EV model launches by global brands.
The downside risks to our PO are (1) unexpected changes in policy that could impact IA growth in China, (2) slower-than-expected server/datacenter demand recovery, and (3) earnings impact from unprofitable long-term investments.