Phillip Securities (Thailand) has upgraded DELTA to "Buy" and raised its base-case price target to 330.00 baht for 2027, expecting third-quarter 2026 net profit of 8.319 billion baht, up 11.8% year on year and 37.0% quarter on quarter, driven by the recovery from a low base in the second quarter of 2026 and accelerating deliveries of AI and data center products, while new products such as liquid cooling equipment are gradually ramping up. Phillip expects third-quarter 2026 revenue of 2.287 billion US dollars, up 38.5% year on year and 13.7% quarter on quarter, helped by a weaker baht, with an assumed average exchange rate of 33.3 baht per dollar, putting baht-denominated revenue at about 77 billion baht, up 45.2% year on year and 18.6% quarter on quarter. Gross margin is expected at 29.4%, improving both year on year and quarter on quarter on a better product mix. However, SG&A as a share of revenue is expected at 17.4%, higher than a year earlier, due to a royalty fee of 8.25%, while R&D as a share of revenue is expected at 3.4%. A key risk to watch is the fourth quarter of 2026, when DELTA will hold its annual negotiations with suppliers, which is likely to push costs higher, and the company may only be able to pass on part of the costs to customers. Phillip has also raised its P/E assumption to 120 times from 100 times.
Delta Electronics (Thailand) Public Company LimitedPhillip Securities upgraded DELTA to Buy and raised its price target to 330 baht, expecting 3Q26 net profit to grow 11.8% year on year.
