PDF 原檔：報告_Citi_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_citi_delta_001.png |
20KB | 真資料圖 | 台達電股價走勢圖（TWD），約 Sep 至 Jun 區間 |
260730_citi_delta_002.png |
141KB | 真資料圖 | Figure 3/4：遠期本益比帶圖（10x/25x/40x/55x）與遠期股價淨值比帶圖（2x/6x/10x/14x，疊加遠期 ROE 虛線），Jan-20 至 Jan-26 |
260730_citi_delta_003.png |
73KB | 真資料圖 | Bull/Base/Bear 情境圖：現價 NT$1,530（2026-07-30），Bull NT$2,700、Base NT$2,280、Bear NT$1,400，標示至 Jul-27 |
260730_citi_delta_004.png |
270KB | 真資料圖 | Delta Electronics 評等與目標價歷史表（14 筆紀錄，2023-08 至 2026-07-22，最新一筆 TP NT$2,280／收盤 NT$1,880）＋ Short-Term View/Catalyst Watch 紀錄表 |
原始內容
(RIC: 2300.1W, BB: 2300 11)
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Prepared for Kevin Lu
S
30 Jul 2026 11:22:38 ET │ 16 pages
Sep
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Delta Electronics (2308.TW)
AI revenue continues in the upward trend
CITI'S TAKE
Delta hosted analyst meeting today. Despite 2Q26 GM/OPM below market expectations, the company remains constructive on AI infrastructure deployment. 2Q GM decline is mainly due to normalizing after one-off benefits in 1Q26; management believes ~35% GM is sustainable. Near-term risks are more related to component shortages, construction delays and product transitions rather than demand deterioration. Importantly, Delta continues to expand capacity globally, raises AI-related capex and invests more in RD, positioning itself to capture future AI power and infrastructure opportunities. Note that AI related revenue would contribute 25% for this year. We maintain Buy on the constructive outlook.
HVDC progresses gradually while Delta maintains technology leadership -
Management reiterated that the transition toward HVDC remains on track but will be more gradual. Production of ± 400V solutions will begin in 3Q26 and will be the mainstream architecture during the initial transition period. 800V adoption will ultimately depend on hyperscaler deployment decisions. Despite increasing competition from Chinese and international power suppliers, Delta believes its early customer engagement, engineering scale and ability to rapidly respond to evolving AI system architectures provide sustainable competitive advantages. Management also expects liquid-to-air cooling solutions to remain the dominant technology for longer than anticipated, with liquid-to-liquid cooling developing more gradually, supporting continued growth in both server power supplies and cooling solutions.
Aggressive capacity expansion reflects long-term constructive demand -Delta plans to invest NT$70 billion capex in 2026 and maintaining high level into next year across Thailand, Taiwan, China and the US. As the management stressed that capacity readiness takes 2-3 years, making current investment decisions is necessary to support expected demand well beyond existing customer orders. Beyond AI servers, Delta sees rapidly expanding opportunities in energy infrastructure, microgrids, power distribution and system-level solutions that require significantly larger manufacturing footprints and different production capabilities. Note that Delta shortened depreciation period of all AI-related equipment from 5 years to 3 years beginning in April. Although these accounting changes may modestly pressure short-term earnings, management views them as prudent measures that strengthen long-term financial discipline while supporting continued investment in the next phase of AI and energy infrastructure growth.
Earnings Summary
| Year to 31Dec | Net Profit (NT$M) | DilutedEPS (NT$) | EPSgrowth (%) | P/E (x) | P/B (x) | ROE (%) | Yield (%) |
|---|---|---|---|---|---|---|---|
| 2024A | 35,229 | 13.56 | 5.5 | 112.8 | 13.7 | 13.1 | 0.5 |
| 2025A | 60,108 | 23.14 | 70.6 | 66.1 | 11.6 | 19 | 0.8 |
| 2026E | 98,861 | 38.06 | 64.5 | 40.2 | 9 | 25.1 | 1.3 |
| 2027E | 149,898 | 57.71 | 51.6 | 26.5 | 6.9 | 29.4 | 1.9 |
| 2028E | 245,908 | 94.67 | 64.1 | 16.2 | 5 | 35.7 | 3.2 |
Source: Powered by dataCentral
n Buy
Price (30 Jul 26 13:30)
NT$1,530.00
Target price
NT$2,280.00
Expected share price
return
49.0%
Expected dividend yield
1.3%
Expected total return
50.3%
Market Cap
NT$3,974,241M US$122,813M
Price Performance (RIC: 2308.TW, BB: 2308 TT)
Laura (Chia Yi) Chen AC
+886-2-8726-9090
laura.cy.chen@citi.com
Michael Hung
+886-2-8726-9092 michael.hung@citi.com
Jack Chen +886-2-8726-9091
jack1.chen@citi.com
Nicholas Lai
+886-2-8726-9093
nicholas.lai@citi.com
See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.
Prepared for Kevin Lu
| 2308.TW: Fiscalyearend31-Dec | 2308.TW: Fiscalyearend31-Dec | 2308.TW: Fiscalyearend31-Dec | 2308.TW: Fiscalyearend31-Dec | 2308.TW: Fiscalyearend31-Dec | 2308.TW: Fiscalyearend31-Dec | NT$1,530.00; TP: | NT$2,280.00; | Market Cap: | NT$3,974,241m; | Recomm:Buy | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit&Loss(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | Valuation ratios | 2024 | 2025 | 2026E | 2027E | 2028E |
| Sales revenue | 421,148 | 554,885 | 794,187 | 1,176,207 | 1,765,727 | PE(x) | na | 66.1 | 40.2 | 26.5 | 16.2 |
| Cost of sales | -284,567 | -364,729 | -503,880 | -724,708 | -1,057,561 | PB(x) | 13.7 | 11.6 | 9.0 | 6.9 | 5.0 |
| Gross profit | 136,580 | 190,157 | 290,307 | 451,499 | 708,167 | EV/EBITDA(x) | 52.2 | 33.6 | 21.5 | 14.1 | 8.7 |
| Gross Margin (%) | 32.4 | 34.3 | 36.6 | 38.4 | 40.1 | FCFyield (%) | 1.0 | 1.3 | 1.7 | 3.0 | 6.9 |
| EBITDA(Adj) | 72,668 | 111,771 | 173,803 | 264,442 | 420,527 | Dividend yield (%) | 0.5 | 0.8 | 1.3 | 1.9 | 3.2 |
| EBITDAMargin(Adj) (%) | 17.3 | 20.1 | 21.9 | 22.5 | 23.8 | Payout ratio (%) | 52 | 52 | 52 | 52 | 52 |
| Depreciation | -25,016 | -27,839 | -34,432 | -33,096 | -39,721 | ROE(%) | 13.1 | 19.0 | 25.1 | 29.4 | 35.7 |
| Amortisation | 0 | 0 | 0 | 0 | 0 | Cashflow(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E |
| EBIT (Adj) | 47,652 | 83,932 | 139,370 | 231,346 | 380,805 | EBITDA | 72,668 | 111,771 | 173,803 | 264,442 | 420,527 |
| EBIT Margin (Adj) (%) | 11.3 | 15.1 | 17.5 | 19.7 | 21.6 | Working capital | 4,363 | 732 | -52,211 | -85,818 | -105,349 |
| Net interest | 1,859 | 1,501 | 2,105 | 977 | 1,253 | Other | -4,136 | -14,029 | 16,452 | 12,382 | 18,180 |
| Associates | 365 | 493 | 194 | 314 | 324 | Operating cashflow | 72,895 | 98,474 | 138,044 | 191,006 | 333,357 |
| Non-Op/Except/Other Adj | 1,439 | 1,940 | 8,546 | 5,912 | 8,862 | Capex | -33,485 | -46,091 | -70,950 | -71,000 | -60,000 |
| Pre-tax profit | 51,316 | 87,866 | 150,216 | 238,549 | 391,244 | Net acq/disposals | -6,571 | -6,528 | 0 | 0 | 0 |
| Tax | -10,925 | -19,930 | -34,437 | -54,866 | -89,986 | Other | -304 | -595 | -3,629 | -314 | -324 |
| Extraord./Min.Int./Pref.div. | -5,163 | -7,828 | -16,917 | -33,785 | -55,350 | Investing cashflow | -40,360 | -53,214 | -74,579 | -71,314 | -60,324 |
| Reported net profit | 35,229 | 60,108 | 98,861 | 149,898 | 245,908 | Dividends paid | -18,696 | -20,313 | -31,024 | -51,026 | -77,368 |
| Net Margin (%) | 8.4 | 10.8 | 12.4 | 12.7 | 13.9 | Financing cashflow | -11,118 | -9,401 | -32,681 | -84,811 | -132,718 |
| CoreNPAT | 35,229 | 60,108 | 98,861 | 149,898 | 245,908 | Net change in cash | 30,003 | 33,713 | 30,783 | 34,881 | 140,316 |
| Per share data | 2024 | 2025 | 2026E | 2027E | 2028E | Free cashflow to s/holders | 39,410 | 52,383 | 67,094 | 120,006 | 273,357 |
| Reported EPS($) | 13.56 | 23.14 | 38.06 | 57.71 | 94.67 | ||||||
| Core EPS($) | 13.56 | 23.14 | 38.06 | 57.71 | 94.67 | ||||||
| DPS($) | 7.00 | 11.94 | 19.64 | 29.79 | 48.86 | ||||||
| CFPS($) | 28.06 | 37.91 | 53.14 | 73.53 | 128.34 | ||||||
| FCFPS($) | 15.17 | 20.17 | 25.83 | 46.20 | 105.24 | ||||||
| BVPS($) | 111.57 | 132.23 | 170.73 | 221.80 | 307.99 | ||||||
| Wtdavgordshares(m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Wtdavgdiluted shares (m) | 2,598 | 2,598 | 2,598 | 2,598 | 2,598 | ||||||
| Growthrates | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Sales revenue (%) | 5.0 | 31.8 | 43.1 | 48.1 | 50.1 | ||||||
| EBIT (Adj) (%) | 16.4 | 76.1 | 66.1 | 66.0 | 64.6 | ||||||
| CoreNPAT(%) | 5.5 | 70.6 | 64.5 | 51.6 | 64.1 | ||||||
| CoreEPS(%) | 5.5 | 70.6 | 64.5 | 51.6 | 64.1 | ||||||
| BalanceSheet(NT$m) | 2024 | 2025 | 2026E | 2027E | 2028E | ||||||
| Cash&cashequiv. | 121,793 | 155,113 | 145,852 | 120,688 | 163,277 | ||||||
| Accounts receivables | 89,921 | 121,717 | 175,776 | 277,786 | 422,777 | ||||||
| Inventory | 89,706 | 108,208 | 180,946 | 273,980 | 416,985 | ||||||
| Net fixed &other tangibles | 115,710 | 142,040 | 178,558 | 216,461 | 236,740 | ||||||
| Goodwill &intangibles assets | 0 | 0 | 0 | 0 | 0 | ||||||
| Financial &other | 114,768 | 112,542 | 121,108 | 128,825 | 141,197 | ||||||
| Total assets | 531,898 | 639,619 | 802,239 | 1,017,741 | 1,380,976 | ||||||
| Accounts payable | 69,223 | 94,452 | 128,994 | 178,175 | 263,095 | ||||||
| Short-term debt | 8,121 | 17,325 | 17,325 | 17,325 | 17,325 | ||||||
| Long-term debt | 32,209 | 21,143 | 21,143 | 21,143 | 21,143 | ||||||
| Provisions &other liab | 142,779 | 181,310 | 226,291 | 293,739 | 403,515 | ||||||
| Total liabilities | 252,332 | 314,230 | 393,753 | 510,382 | 705,077 | ||||||
| Shareholders' equity | 289,809 | 343,460 | 443,475 | 576,132 | 800,022 | ||||||
| Minority interests | -10,243 | -18,071 | -34,989 | -68,773 | -124,123 | ||||||
| Total equity | 279,565 | 325,389 -116,645 | 408,487 -107,384 | 507,359 | 675,899 | ||||||
| Net debt (Adj) | -81,463 | -82,220 | -124,809 | ||||||||
| Net debt to equity (Adj) (%) | -29.1 | -35.8 | -26.3 | -16.2 | -18.5 |
Prepared for Kevin Lu
Figure 1. Delta - 2Q26 earnings review
| Consolidated financials | 2Q26 | 2Q26 | 2Q26 | 1Q26 | QoQ | 2Q25 | YoY | 2Q26 | 2Q26 |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | Actual | Citi | Diff (%) | Actual | (%) | Actual | (%) | Consensus | Diff (%) |
| Revenue | 183,256 | 183,269 | 0% | 159,353 | 15% | 124,035 | 48% | 182,833 | 0% |
| Gross Profit | 65,308 | 64,509 | 1% | 58,961 | 11% | 44,049 | 48% | 66,610 | -2% |
| Operating Profit | 30,570 | 29,201 | 5% | 28,417 | 8% | 18,669 | 64% | 36,766 | -17% |
| Pretax profit | 35,000 | 31,027 | 13% | 31,093 | 13% | 19,571 | 79% | 34,915 | 0% |
| NetProfit | 25,136 | 19,352 | 30% | 20,556 | 22% | 13,948 | 80% | 24,846 | 1% |
| EPS(NT$) | 9.68 | 7.45 | 30% | 7.91 | 22% | 5.37 | 80% | 9.47 | 2% |
| Margins(%) | |||||||||
| GrossMargin | 35.6% | 35.2% | 0.4% | 37.0% | -1.4% | 35.5% | 0.1% | 36.4% | -0.8% |
| Operating margin | 16.7% | 15.9% | 0.7% | 17.8% | -1.2% | 15.1% | 1.6% | 20.1% | -3.4% |
| Netmargin | 13.7% | 10.6% | 3.2% | 12.9% | 0.8% | 11.2% | 2.5% | 13.6% | 0.1% |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Company Reports, Citi Research Estimates, Bloomberg consensus
Key takeaways from the analyst meeting
- Long-term GM framework : Management views approximately 35% gross margin as a reasonable and sustainable level, subject to product mix. The higher 1Q26 margin benefited from one-off ordercancellation income and DDP accounting for certain cooling products. Even with continued revenue growth, management does not expect significant structural GM expansion from current levels.
- AI exposure continues to rise: AI-related products are expected to contribute more than 25% of 2026 revenue, versus the previous 20% target. Data-center-related businesses already represented more than half of total revenue in 1H26. Cooling revenue accounted for around 10% of revenue in 2025 and is expected to exceed 12% in 2026.
- HVDC technology roadmap : Both ± 400V and 800V HVDC entered production in 3Q26, but shipment volumes should remain limited during 2026, with more meaningful contribution expected in 2027. Management expects ± 400V adoption to progress faster initially, while 800V deployment depends on Nvidia and CSP adoption of nextgeneration data-center power architectures.
- Nvidia Blackwell shipments are expected to remain significantly larger than Rubin in 2026 . Rubin can still operate with lower-voltage
2Q result recap
Delta's 2Q26 revenue reached NT$183.2bn (+48% YoY/+15% QoQ) with GM/OPM at 35.6%/16.7%, lower than consensus estimate but better than our estimate. 2Q26 GM normalized after one-off benefits in 1Q26; management believes ~35% GM is sustainable. Near-term risks are more related to component shortages, construction delays and product transitions rather than demand deterioration Management did not provide a long-term OPM target but indicated that current profitability is reasonable. We are looking for 17.7% QoQ revenue growth with slight GM improvement into 3Q26 anticipating better product mix on AI-related product
Prepared for Kevin Lu power designs, meaning 800V is not essential for initial Rubin deployments and adoption is likely to be gradual rather than immediate.
- Cooling roadmap : Delta continues to develop liquid-to-liquid cooling, but management expects liquid-to-air solutions to remain mainstream for longer than the market previously anticipated. This supports continued growth from Delta's existing cooling portfolio while allowing a gradual transition toward more advanced architectures.
- Next-generation infrastructure technologies remain early-stage : Solidstate transformers (SST) are already being tested by a small datacenter customer, but meaningful volume will take time because SST functions as an integrated 'energy gateway,' rather than a direct replacement for conventional transformers. Fuel-cell pilot production is planned for late 2026, followed by the first mass-production line in 2027.
- Competitive position remains strong : Delta believes it retains a leading position in new power platforms, including ± 400V, 800V and 110kW power shelves, due to earlier customer engagement, larger engineering resources and close cooperation with hyperscalers. Rapid AI architecture changes are viewed as a competitive advantage for Delta, although they require sustained R&D investment.
- Conservative accounting alongside aggressive investment : Delta shortened the depreciation period for new AI-related equipment from five years to three years, reflecting faster technology transitions and a more conservative risk approach. This may limit reported margin expansion despite strong AI revenue growth, while capex could reach approximately NT$70bn in 2026 to support capacity required two or more years ahead.
Maintaining Buy with TP NT$2,280 unchanged
Delta's share price corrected more than 30% from the recent peak given the concern on AI investment sustainability and potential slow deployment of HVDC. Meanwhile, we see the structural demand outlook for AI remains intact. Our FY2627 earnings projection is largely unchanged (1-6% revisions), and we maintain Buy with TP NT$2,280, still based on 40x of our 2027E EPS estimate.
Prepared for Kevin Lu
Figure 2. Delta - Earnings estimate revisions
| 2026E | 2026E | 2026E | 2027E | 2027E | 2027E | 2028E | 2028E | 2028E | |
|---|---|---|---|---|---|---|---|---|---|
| NT$mn | New | Old | Chg | New | Old | Chg | New | Old | Chg |
| Revenue | 794,187 | 796,248 | 0% | 1,176,207 | 1,131,647 | 4% | 1,765,727 | 1,600,472 | 10% |
| Gross profit | 290,307 | 291,899 | -1% | 451,499 | 444,794 | 2% | 708,167 | 667,761 | 6% |
| OPEX | 150,937 | 152,431 | -1% | 220,153 | 214,710 | 3% | 327,361 | 303,365 | 8% |
| Operating profit | 139,370 | 139,467 | 0% | 231,346 | 230,084 | 1% | 380,805 | 364,396 | 5% |
| Pre-tax profit | 150,216 | 146,547 | 3% | 238,549 | 236,510 | 1% | 391,244 | 374,115 | 5% |
| Netprofit | 98,861 | 93,269 | 6% | 149,898 | 148,577 | 1% | 245,908 | 235,153 | 5% |
| EPS(NT$) | 38.06 | 35.91 | 6% | 57.71 | 57.20 | 1% | 94.67 | 90.53 | 5% |
| Ratio | New | Old | diff | New | Old | diff | New | Old | diff |
| Gross margin (%) | 36.6 | 36.7 | -0.1 | 38.4 | 39.3 | -0.9 | 40.1 | 41.7 | -1.6 |
| OPEXtoSalesratio(%) | 19.0 | 19.1 | -0.1 | 18.7 | 19.0 | -0.3 | 18.5 | 19.0 | -0.4 |
| Operating margin (%) | 17.5 | 17.5 | 0.0 | 19.7 | 20.3 | -0.7 | 21.6 | 22.8 | -1.2 |
| Netmargin (%) | 12.4 | 11.7 | 0.7 | 12.7 | 13.1 | -0.4 | 13.9 | 14.7 | -0.8 |
© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.
Source: Citi Research Estimates
Prepared for Kevin Lu
Figure 5. Delta - Quarterly earnings forecasts
| NT$mn | 1Q26 | 2Q26 | 3Q26E | 4Q26E | 1Q27E | 2Q27E | 3Q27E | 4Q27E | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Netsales | 159,353 | 183,256 | 215,703 | 235,876 | 231,974 | 270,806 | 326,195 | 347,232 | 554,885 | 794,187 | 1,176,207 | 1,765,727 |
| Gross profit | 58,961 | 65,308 | 77,707 | 88,331 | 86,700 | 103,787 | 125,941 | 135,071 | 190,157 | 290,307 | 451,499 | 708,167 |
| OPEX | 30,544 | 34,738 | 41,154 | 44,501 | 43,836 | 50,995 | 60,869 | 64,453 | 106,224 | 150,937 | 220,153 | 327,361 |
| Operating profit | 28,417 | 30,570 | 36,553 | 43,830 | 42,865 | 52,792 | 65,072 | 70,618 | 83,932 | 139,370 | 231,346 | 380,805 |
| TotalNon-OP | 2,676 | 4,430 | 1,967 | 1,773 | 1,800 | 1,903 | 1,712 | 1,788 | 3,934 | 10,846 | 7,203 | 10,439 |
| Pre-tax profit | 31,093 | 35,000 | 38,520 | 45,603 | 44,664 | 54,694 | 66,785 | 72,406 | 87,866 | 150,216 | 238,549 | 391,244 |
| Income tax | 7,258 | 7,831 | 8,860 | 10,489 | 10,273 | 12,580 | 15,360 | 16,653 | 19,930 | 34,437 | 54,866 | 89,986 |
| Net profit | 20,556 | 25,136 | 24,025 | 29,145 | 27,857 | 34,113 | 41,654 | 46,275 | 60,108 | 98,861 | 149,898 | 245,908 |
| EPS (NT$) | 7.91 | 9.68 | 9.25 | 11.22 | 10.72 | 13.13 | 16.04 | 17.81 | 23.14 | 38.06 | 57.71 | 94.67 |
| Product Mix (%) | ||||||||||||
| Power Electronics | 59% | 57% | 57% | 53% | 56% | 57% | 57% | 56% | 57% | 56% | 56% | 59% |
| Infrastructure | 32% | 34% | 35% | 39% | 37% | 37% | 38% | 39% | 33% | 35% | 38% | 37% |
| Automation | 9% | 8% | 8% | 8% | 7% | 6% | 5% | 5% | 10% | 8% | 6% | 4% |
| Others | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Margins (%) | ||||||||||||
| Gross profit | 37.0 | 35.6 | 36.0 | 37.4 | 37.4 | 38.3 | 38.6 | 38.9 | 34.3 | 36.6 | 38.4 | 40.1 |
| OPEXtoSalesRatio | 19.2 | 19.0 | 19.1 | 18.9 | 18.9 | 18.8 | 18.7 | 18.6 | 19.1 | 19.0 | 18.7 | 18.5 |
| Operating profit | 17.8 | 16.7 | 16.9 | 18.6 | 18.5 | 19.5 | 19.9 | 20.3 | 15.1 | 17.5 | 19.7 | 21.6 |
| Pre-tax profit | 19.5 | 19.1 | 17.9 | 19.3 | 19.3 | 20.2 | 20.5 | 20.9 | 15.8 | 18.9 | 20.3 | 22.2 |
| Netprofit | 12.9 | 13.7 | 11.1 | 12.4 | 12.0 | 12.6 | 12.8 | 13.3 | 10.8 | 12.4 | 12.7 | 13.9 |
| Y/Y(%) | ||||||||||||
| Netsales | 34.0 | 47.7 | 43.5 | 46.0 | 45.6 | 47.8 | 51.2 | 47.2 | 31.8 | 43.1 | 48.1 | 50.1 |
| Gross profit | 56.0 | 48.3 | 48.2 | 58.0 | 47.0 | 58.9 | 62.1 | 52.9 | 39.2 | 52.7 | 55.5 | 56.8 |
| OPEX | 28.6 | 36.9 | 49.1 | 50.9 | 43.5 | 46.8 | 47.9 | 44.8 | 19.4 | 42.1 | 45.9 | 48.7 |
| Operating profit | 102.5 | 63.7 | 47.3 | 65.9 | 50.8 | 72.7 | 78.0 | 61.1 | 76.1 | 66.1 | 66.0 | 64.6 |
| Pre-tax profit | 98.5 | 78.8 | 42.8 | 77.8 | 43.6 | 56.3 | 73.4 | 58.8 | 71.2 | 71.0 | 58.8 | 64.0 |
| Netprofit | 100.9 | 80.2 | 29.1 | 68.2 | 35.5 | 35.7 | 73.4 | 58.8 | 70.6 | 64.5 | 51.6 | 64.1 |
| Q/Q(%) | ||||||||||||
| Netsales | (1.4) | 15.0 | 17.7 | 9.4 | (1.7) | 16.7 | 20.5 | 6.4 | ||||
| Gross profit | 5.5 | 10.8 | 19.0 | 13.7 | (1.8) | 19.7 | 21.3 | 7.2 | ||||
| Operating profit | 7.6 | 7.6 | 19.6 | 19.9 | (2.2) | 23.2 | 23.3 | 8.5 | ||||
| Pre-tax profit | 21.2 | 12.6 | 10.1 | 18.4 | (2.1) | 22.5 | 22.1 | 8.4 | ||||
| Netprofit | 18.7 | 22.3 | (4.4) | 21.3 | (4.4) | 22.5 | 22.1 | 11.1 |
NT$
2,700
2,250
1,800
1,350
900
450
Jul 25
• Target multiple at 45x
· 8.5% Downside
4 4 76% Upside
NT$ 2,280.00
A 49% Upside
NT$ 1,400.00
Bull/Bear: Delta Electronics (2308.TW)
BASE Assumptions
• Sales to grow by 43-48% in 2026E-27E with OPM at 17.5-19.7%
• Target multiple at 40x
BEAR Assumptions
{j. Sales to grow by 10% in 2026E-27E with OPM at 14.0%
- Target multiple at 25x
Prepared for Kevin Lu
Prepared for Kevin Lu
Delta Electronics
Company description
Delta was established in 1975 and is the world's leading computer switching power supply manufacturer. Its business is divided into: 1) Power Electronics (59% of 2022 revenue), including Switching Power Supply, Components, Display and EV Solution; 2) Infrastructure (27% of revenue), including Wind power, Telecom power, UPS, EV Infrastructure, Networking; 3) Automation (14% of revenue), including Industrial Automation (IA), Building Automation; and 4) Others (<1% of revenue).
Investment strategy
We rate Delta Electronics shares as Buy due to its strong execution and the ability to expand margin through favorable product mix shift to AI power and thermal solutions. We believe EV business slowdown is in the price, and we expect margins to improve driven by AI solution spec upgrades and expanding business scale. Delta is now positioning itself as an infrastructurer enabler rather than a pure component supplier, which deepens its key position in the AI supply chain.
Valuation
Our target price for Delta Electronics of NT$2,280 is based on 40x 2027E EPS estimate. Our target multiple is set at the higher end of its trading range since 2023, which we believe is warranted by Delta's strong earnings growth and better product mix prospects. We also believe the company's leading industry position, long product development cycle, and strong engagement with customers should translate into high orders/earnings visibility.
Risks
Key downside risks that could impede the stock from reaching our target price are: 1) lower contribution from non-PC businesses; 2) products in the new businesses (LED lighting, electric vehicle, and Voice) growing more slowly than expected; and 3) PC power supply losing market share.
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