Delta Electronics Inc

Dongyangguang disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 9.376 billion yuan, up 31.61% year on year, and net operating cash flow of 2.512 billion yuan, up 843.66% year on year. After excluding the impact of equity incentive expenses and fair value changes, net profit attributable to the parent company was 746 million yuan, up 40.20% year on year, and non-GAAP net profit attributable to the parent company was 717 million yuan, up 48.95% year on year. The AI business achieved operating revenue of 289 million yuan, up 1,144.22% year on year, with a gross margin of 45.39%, covering computing power leasing, AI passive components, and liquid cooling technology. The company established a controlling subsidiary, Dongyangguang Cloud Intelligent Computing, to carry out computing power leasing. As of July, it had secured multiple long-term orders with a total contract scale of approximately 39.046 trillion yuan. During the reporting period, computing power service orders generated operating revenue of 60.3418 million yuan. The company's acquisition and integration of Chindata is progressing, and it is working with Chindata, Meituan, and Delta to build the industry's first SST intelligent direct-current power supply commercial project, with power supply efficiency reaching 98.5%.

Delta Electronics (Taiwan), the parent company of Delta Electronics (Thailand) Public Company Limited, reported consolidated sales revenue for July 2026 of 67.073 billion Taiwan dollars, an increase of 47.7% from 45.397 billion Taiwan dollars in July 2025, and up 2.2% from 65.603 billion Taiwan dollars in June 2026. Cumulative revenue for the January to July 2026 period reached 409.682 billion Taiwan dollars, up 42.1% from 288.352 billion Taiwan dollars in the same period last year. The revenue breakdown for July 2026 shows Power Electronics as the largest segment, accounting for 57% of total sales, followed by Infrastructure at 32%, Automation at 7%, and Mobility at 4%. These revenue figures are unaudited.

DELTA shares closed the morning session up 6.11% at 278.00 baht, after reports that Delta Taiwan has begun sourcing raw materials for a new 800V AI data center system, an architecture that supports higher power consumption and more efficient energy management. This is a positive signal for DELTA's next growth phase and points to potential increases in average selling prices. Krungsri Securities noted that the AI CAPEX cycle in 2027 is accelerating by 47% compared to the previous year, up from a 31% increase previously, reflecting surging demand. The combined capital expenditure estimates for Microsoft, Alphabet, Amazon, Meta, and SpaceX have been revised up by around 20% to 1.15 trillion US dollars. Meanwhile, reduced US interest rate risk supports continued investment. TTB Wealth Securities maintains a buy recommendation on DELTA with a target price of 420 baht.

Bualuang Securities Public Company Limited stated that the net profit of Delta Electronics Thailand Public Company Limited, or DELTA, for the second quarter of 2026 may come in better than market expectations, with an estimate of approximately 9.0 to 9.5 billion baht, higher than the market consensus of 8.7 billion baht. This is due to Delta Taiwan's revenue in June recovering to 65.6 billion New Taiwan dollars, up from 58.7 billion in April and 59.0 billion in May, reflecting that supply constraints caused by shortages of raw materials such as high-voltage MOSFETs are beginning to ease. Delta Taiwan's total revenue for the second quarter of 2026 was 183.3 billion New Taiwan dollars, an increase of 48 percent year-on-year and 15 percent quarter-on-quarter. The Power segment grew 50 percent year-on-year and 13 percent quarter-on-quarter, while the Infrastructure segment grew 77 percent year-on-year and 22 percent quarter-on-quarter. Bualuang Securities expects DELTA Thailand's revenue in the second quarter of 2026 to grow approximately 10 percent quarter-on-quarter, higher than the market estimate which has been revised down to 5 percent quarter-on-quarter. Although the gross margin may decline to around 30 percent from 32 percent in the first quarter of 2026 due to higher raw material costs, strong revenue will help support net profit to remain stable quarter-on-quarter and exceed market expectations by about 5 to 10 percent. Additionally, Bualuang Securities views that the analyst meeting after the earnings announcement on July 27, 2026 is likely to reflect a more positive outlook, with management possibly signaling that raw material shortages began to ease from June and were only temporary supply constraints, not a demand issue, while maintaining full-year guidance. Bualuang Securities therefore gives a 2027 reference price of 440 baht.