Delta Electronics (Thailand) Public Company Limited

The Ministry of Commerce reported that Thailand's export value in July 2026 stood at 34.8 billion US dollars, expanding 21.6% year-on-year, higher than the market's expectation of 17.8%. Meanwhile, imports for the same month were 38.4 billion US dollars, up 37.8%, lower than expected, resulting in a trade deficit of 3.61 billion US dollars, less than forecast. Products with good growth include rubber, processed chicken, pet food, processed canned seafood, and electronic goods. Stocks in these sectors, such as STA, GFPT, ITC, TU, DELTA, HANA, and KCE, benefit accordingly. In the first seven months of the year, exports totaled 232 billion US dollars, up 18.2%, while imports were 267 billion US dollars, up 37.8%, with a trade deficit of 35.4 billion US dollars. The Ministry of Commerce sees support from global demand for technology products and digital infrastructure, as well as accelerated imports to prepare for US trade policies. Meanwhile, brokers like Krungsri Securities and Phillip Securities view positively on export-related stocks and recommend top picks such as DELTA, HANA, KCE, AMATA, GULF, GPSC, KBANK, and KTB.

Mr. Koraphat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities (KSS), revealed that Thailand Focus 2026 sends a positive signal to the Thai capital market, with increased interest from foreign investors and Thailand's readiness as a new investment base, especially in the data center business amid the accelerating AI adoption trend. KSS assesses that the Fed is likely to hold interest rates until the end of the year and may cut rates later in the year, which would be positive for capital flows into emerging markets, including the Thai stock market. It views that foreign net selling on some days should not be used to judge the direction of fund flows based on a single day's data, while the return to long positions in TFEX is a signal to watch. On fundamentals, Thai listed companies' earnings have grown for six consecutive quarters and have the potential to expand further in Q3/2026, with this earnings cycle possibly longer than the 2010-2011 cycle, which saw growth for about seven consecutive quarters. KSS favors sectors that benefit from the investment cycle, including commercial banks, power plants, industrial estates, construction, and power grid businesses, and selects DELTA and GULF as top picks. DELTA is supported by the AI investment cycle, while GULF benefits from data center investment and the country's energy policy.

Krungsri Securities (KSS) expects the SET to move sideways/up today, with resistance at 1,614 and 1,630 points and support at 1,592 and 1,587 points. This is supported by accelerating AI CAPEX after NVIDIA reported better-than-expected earnings, and US PCE inflation rose slightly. Meanwhile, the Thailand Focus event highlights Thailand's strengths in attracting foreign investment, recommending three investment themes: stocks benefiting from AI CAPEX such as HANA, DELTA, and GULF, as well as power stocks and re-rating stocks.

Brokers expect the Thai stock market to have a chance to rise to the resistance level of 1,620 points today, supported by tech stocks, especially DELTA and HANA, after NVIDIA reported better-than-expected Q2 FY70 results. Profit expanded 126% year-on-year, revenue increased 106%, and gross margin stood at 75%, 6% higher than Bloomberg's forecast. This drove NVIDIA's stock price up 4.6% in after-hours trading, and this morning the KOSPI index rose 2.5%. On the domestic front, the Monetary Policy Committee kept interest rates unchanged but assessed that the Thai economy is supported by AI, although growth remains low and uneven. They believe that looser interest rates will help revive the economy. Analysts from Pai Securities stated that SET today has a trading range of 1,590 – 1,620 points, recommending investment in tech, tourism, retail, banking, power plant, and industrial estate stocks.

Third-quarter net profit of Thai listed companies is expected to expand from a year earlier but slow from the previous quarter, with the main support coming from higher energy prices, petrochemical spreads, mobile and internet service revenue, electronics demand, as well as new power generation capacity and profit from GULF's overseas power plant business. Meanwhile, higher jet fuel costs are pressuring the airline group, and narrowing interest margins are pressuring the banking group. Groups whose core profit is expected to grow from a year earlier are led by energy, petrochemicals and construction materials, supported by average Brent crude prices in July to August rising 28% from a year earlier and Singapore GRM refining margins rising 434% from a year earlier. The electronics group is supported by strong AI and data center demand, with DELTA Taiwan's power electronics sales in July growing 59% from a year earlier and 17% from the previous quarter. KCE expects PCB revenue may rise 17 to 19% from the previous quarter thanks to product price increases effective from July 1, which should lift average selling prices by about 9 to 10%. HANA is seeing IC capacity utilization recover, and AI-related products are expected to begin commercial production from the third quarter. The communications group is supported by mobile and internet service revenue. The hospital group expects revenue to return to growth both from a year earlier and from the previous month in July, supported by Thai and Middle Eastern patients, with flights from the Persian Gulf estimated to have recovered to pre-war levels since early July. The retail group saw same-store sales rise 1% from a year earlier in July, led by IT product retailers, with COM7 expecting total sales to grow 15% from a year earlier and ADVICE growing 17% from a year earlier. CPALL expects same-store sales to expand 0.5% from a year earlier on average in July to August, while Makro was flat and Lotus contracted 5% from a year earlier. The tourism group saw revenue per available room in July at AWC rise 26% from a year earlier, CENTEL rise 8% from a year earlier, ERW rise about 5% from a year earlier, and MINT rise 4% from a year earlier. Groups whose core profit is expected to decline from a year earlier are led by transport, pressured by higher jet fuel costs, banking, pressured by persistently narrowing interest margins, and meat, pressured by lower meat prices, with average pork prices in July falling 14% from a year earlier and chicken prices falling 1% from a year earlier. Meanwhile, the pet food export group expects sales to still grow 10% from a year earlier and 7% from the previous quarter in July. Analysts recommend being selective in stocks whose third-quarter earnings trends are still expected to grow strongly, have not seen sharp earnings downgrades over the past three months, and have clear positive factors supporting recovery. These include KCE in electronics, CBG in beverages, which expects domestic energy drink sales to grow 10% from a year earlier and Myanmar sales to grow 70% from a year earlier in the third quarter of 2026, ITC in pet food exports, BH and BDMS in hospitals, AOT and CENTEL in tourism and airports, and GPSC in power plants, which recognizes full-quarter profit from GHECO-One and Glow IPP power plants.

Six listed electronics component makers reported higher net profit in the second quarter of 2026 compared with the same period a year earlier, with HANA and TEAM growing more than 100 percent, while KCE, CCET, DELTA and METCO rose 13 to 51 percent. The growth was supported by a recovery in overseas orders, higher electronics and semiconductor sales, and a shift in product mix toward higher-margin goods. Global investment trends in AI and data centers remain supportive factors for demand for power supply systems, cooling systems, printed circuit boards and related products, especially for companies in the supply chains of global cloud service providers and semiconductor manufacturers. HANA reported net profit of 326.31 million baht, up 838.35 percent from 34.78 million baht. TEAM posted profit of 79.99 million baht, up 173.11 percent from 29.29 million baht. KCE reported profit of 275.92 million baht, up 51.49 percent from 182.14 million baht. CCET posted profit of 711.32 million baht, up 48.13 percent from 480.20 million baht. DELTA reported profit of 6.07 billion baht, up 31.23 percent from 4.63 billion baht. METCO posted profit of 234.57 million baht, up 13.38 percent from 206.90 million baht. Analysts from Krungsri Securities, KGI Securities, Kasikorn Securities and Maybank Securities all assessed the outlook for the second half of 2026 as positive, especially for DELTA, HANA and CCET, which are beginning to benefit from new products and new production capacity.

Krungsri Securities Public Company Limited, or KSS, said the US Treasury is preparing to increase the size of its long-dated government bond buybacks to at least 4 billion US dollars per operation, focusing on bonds with maturities of 10 to 20 years and 20 to 30 years, starting from 9 September 2026 onwards. The measure caused the yield on 30-year US government bonds to fall by 0.07%, while the 10-year yield fell by 0.04%, alongside a weaker US dollar and a recovery in global risk assets. KSS views this bond buyback as a measure to support liquidity and manage the average maturity of debt securities rather than as quantitative easing, because the US Treasury is using short-term Treasury bill issuance as the main funding source for buying back long-term bonds. These factors pushed the dollar index down to its lowest level in one month, while the baht strengthened to trade around 32.80 to 32.90 baht per US dollar, reflecting conditions that favour foreign capital inflows into Asian and Thai equity markets. In the medium to long term, the Thai economy should also benefit from foreign direct investment flowing into the ASEAN region, supporting the investment cycle in artificial intelligence infrastructure and data centres. This should be positive for commercial banking stocks as the main funding source, without concern over non-performing loan risk among SME businesses, because this credit cycle is being driven by large corporates and the government continues to provide assistance measures for SMEs. Stocks expected to benefit directly from easing bond yields and the technology trend include Delta Electronics Thailand Public Company Limited, or DELTA; KCE Electronics Public Company Limited, or KCE; Hana Microelectronics Public Company Limited, or HANA; Gulf Development Public Company Limited, or GULF; Global Power Synergy Public Company Limited, or GPSC; WHA Utilities and Power Public Company Limited, or WHAUP; Muangthai Capital Public Company Limited, or MTC; and Krungthai Card Public Company Limited, or KTC.

Analysts at Kasikorn Securities expect DELTA's revenue to continue growing in the second half of 2026 by at least 20% from the first half, supported by strong demand for AI infrastructure, easing raw material constraints, and an improving product mix. They also expect gross margin to expand back toward nearly 30%. The five major cloud providers, Microsoft, Google, Amazon, Meta, and Oracle, are expected to have combined capital spending of about 850 billion US dollars, up 11% from the previous quarter, and NVIDIA expects AI-related capital spending to exceed 1 trillion US dollars in 2027. Kasikorn Securities views DELTA as a strategic top pick for August because the share price has already priced in the bad news.

Kasikorn Securities said private investment in the second quarter of 2026 grew 13.4 percent, the highest in 11 years, supported by investment flows into S-Curve industries such as electronics, AI, and clean energy. Exports grew 12.5 percent, reflecting economic restructuring toward a New Economy production base, even as GDP slowed to 1.9 percent due to pressure from energy, inflation, and weaker consumption. The research team views this as positive for industrial estates, electronics, data centers, and clean energy, including WHA, Amata, Delta, Hana, KCE, and Gulf, driven by accelerating FDI and new infrastructure investment.

Asia Plus Securities has upgraded its investment weighting on the electronics sector from market weight to overweight, expecting second-half 2069 profit to be better than the first half because the third quarter of 2069 is a high season when customers accelerate orders before the long year-end holidays. Analysts said DELTA and KCE, which were the main drivers of the sector's first-half profit, will continue to recover. DELTA's raw material shortage has been easing since July 2069, while KCE is benefiting from higher margins due to a global laminate shortage. The broker selected DELTA as its top pick because it believes profit has passed its trough in the second quarter of 2069 and is expected to show the strongest growth in the third quarter of 2069.

PTT remains the champion for the highest net profit in the first six months of 2026, with net profit of 78.263 billion baht, surging 74.50% from the same period last year, reflecting a strong recovery in the energy and petroleum business. PTTEP follows in second place with profit of 39.03245 billion baht, up 29.78%, while ADVANC continues to stand out in the telecom group with profit of 27.21151 billion baht, growing 26.18%. As for DELTA, despite having the highest market value of more than 3.34 trillion baht, it posted a first-half profit of 15.15577 billion baht, up 49.80% from the same period last year. TRUE is another company worth watching, because this time it recorded net profit of 13.14285 billion baht with a strong growth rate of 258.60%, reflecting the results of the merger and cost management that are beginning to show full effect. However, for GULF, although its net profit figure declined significantly, a closer look inside shows that in the second quarter of 2025 it booked a special gain from the business combination with INTUCH of 56.12 billion baht. Therefore, if counting only operating profit, it would be 21.659 billion baht, up 59.2% compared with the same period last year.

DELTA disclosed that its AI and Data Center related business has become the company's main engine, currently accounting for approximately 55 to 60 percent of revenue, up from 20 to 30 percent of total revenue previously. Because AI systems require higher power, unit prices have risen and profit margins have improved. The company is moving forward with expanding its thermal management market, covering both liquid cooling and cooling fans. Liquid cooling still contributes revenue in the low single digits, and most of the production base comes from factories in Taiwan and China. DELTA Thailand has begun assembling subsystems and has prepared production space to support future expansion. It has also raised its capital expenditure budget to 600 million US dollars, up from 500 million US dollars, to meet customer demand, focusing on building factories, purchasing advanced machinery, and investing in automated production systems. The company views the shortage of memory, GPUs, or TPUs in the first half of 2026 as only a short-term obstacle, and has prepared two to three backup suppliers to reduce risk, while continuing to develop new procurement sources both in China and outside China.

DELTA announced an increase in its 2026 capital expenditure budget by another 100 million US dollars to 600 million US dollars, up from 500 million US dollars, to support factory expansion and automation systems in response to the AI and data center megatrends. Chief Executive Officer Victor Cheng said at the Delta Future Industry Summit 2026 that AI and data center businesses have become the main growth engine, with their revenue share rising from 20 to 30 percent to 50 to 60 percent of total revenue, and expressed confidence that results in 2026 and 2027 will continue to grow by double digits. The company reported second-quarter 2026 sales of 65.191 billion baht, up 46.5 percent from a year earlier, and net profit of 6.075 billion baht, up 31.3 percent from a year earlier but down 33.1 percent from the first quarter, when net profit was 9.081 billion baht. Profit came in below analyst expectations, with Finansia Syrus Securities forecasting 8.290 billion baht and Tisco Securities forecasting 9.020 billion baht. The CEO also discussed raw material and supplier risk management, saying the company has two to three backup suppliers and is seeking new procurement sources after sanctions on a Chinese vendor in the second quarter.

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 at 278 baht, up 16 baht or 6.11%, with the highest trading value of 5.84 billion baht, boosting the SET Index to close at 1,625.02 points, up 13.02 points. This followed reports that Delta Taiwan has begun sourcing raw materials for Nvidia's new 800V AI Data Center system, a positive signal for DELTA's next growth cycle, and its existing power management solutions are likely to see higher unit selling prices. TTB Wealth Securities maintained a buy recommendation with a target price of 420 baht.

Maybank Securities Thailand has upgraded its recommendation on DELTA to buy from hold, while trimming its target price to 313 baht from 336 baht. The broker expects normalized profit to grow 42 percent year-on-year in 2026 and 47 percent in 2027. Although the stock trades at a 2027 price-to-earnings ratio of around 72 times, roughly one standard deviation above its five-year average, the roughly 27 percent decline from its peak offers an attractive entry point to capture the recovery in normalized profit in the second half of 2026 and the first quarter of 2027, supported by a rebound in gross profit margin. The research team has cut its 2026 normalized profit forecast by 12 percent to 33 billion baht to reflect weaker-than-expected second-quarter 2026 results due to higher raw material costs. However, it expects normalized profit in the second half to rebound strongly to 18 billion baht, up 35 percent year-on-year and 27 percent half-on-half, driven by a recovery in gross profit margin, sales growth, the addition of new suppliers to address raw material shortages, and the reversal of an inventory impairment of about 800 million baht booked in the second quarter of 2026. In addition, DELTA will begin commercial production at its new Bangpoo plant, which will boost capacity in the second half. Normalized profit for 2027 is forecast at 48 billion baht, up 47 percent, supported by new capacity, a higher proportion of high-margin products, and the gradual pass-through of raw material costs to customers through annual price negotiations.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

CGS International Securities Thailand, or CGSI, estimates the SET index range today at 1,615 to 1,640 points, supported by the Dow closing at a record high after US-Iran tensions eased, dragging down oil prices and US Treasury yields. The Dow closed at 53,178.41 points, up 693.38 points or 1.32 percent, while West Texas Intermediate crude for September delivery tumbled 4.33 dollars or 5.11 percent to settle at 80.34 dollars per barrel. CGSI recommends THAI, expecting profit to bottom in the second quarter of 2026 before recovering in the second half of 2026 and accelerating further in 2027, driven by lower jet fuel costs and fleet expansion. It also recommends DELTA, forecasting strong revenue growth in the second half of 2026 as margins gradually improve, with third-quarter 2026 revenue estimated to grow around 15 percent quarter-on-quarter.

Bualuang Securities assesses that DELTA has passed its lowest point in the second quarter of 2026, expecting gross margin to recover by 2.5–3% in the third quarter, returning close to 30% after supply issues ease and no further provisions are needed. Mr. Napon Jaisan, Deputy Head of Research, revealed that second-quarter profit of 6.1 billion baht came in below expectations due to raw material shortages and sanctions on a Chinese supplier, but new suppliers are now in place and production will return to normal in August. Meanwhile, demand from hyperscale customers remains robust. He recommends accumulating DELTA at 270–275 baht, with worst-case support at 230–240 baht, and views KCE as the safest stock in the electronics sector because it is an upstream PCB manufacturer with no chip shortage risk and benefits from automotive and ADAS trends, setting a target price of 47 baht.

The SET index closed on 31 July up 25.53 points at 1,623.64 points, with turnover of 89.032 billion baht. Buying came from foreign investors at 3.516 billion baht, funds at 2.037 billion baht, and broker portfolios at 493 million baht, while retail investors were net sellers of 6.046 billion baht. DELTA and electronics stocks such as HANA, KCE, and CCET were key drivers that pushed the index to close above 1,600 points. Meanwhile, THAI, which exits its trading suspension on 4 August, has up to 19 billion shares eligible for sale. An estimated 8 billion shares could be sold in the first minute by retail investors, funds, and insurance companies, while cooperatives and commercial banks that converted debt to equity at a cost of 2.50 baht are still weighing their decisions. TCAP closed at 78.75 baht, up 7 baht or 9.82%, hitting a 30-year high after the board approved a 7.5 billion baht share buyback programme between 17 August and 16 February 2026.

The Thai stock market closed at 1,623.64 points, up 25.53 points or 1.60 percent, with turnover of 89.03 billion baht. The market was supported by bargain hunting in large-cap stocks, especially DELTA and electronic components plays, as well as banking, power plant, and retail sectors. This came alongside a lower-than-expected US core PCE index, which eased concerns over the Federal Reserve's monetary policy, while retreating US bond yields also bolstered investment sentiment. The outlook for next week remains volatile, with resistance at 1,650 points and support at 1,610 points.

Finansia Syrus Securities expects the SET index to rise and test the 1,680 to 1,700 point level next week, with banking and construction materials sectors leading the market. It recommends top picks CPALL and HMPRO. The SET index recently closed at 1,626.57 points, up 28.46 points or 1.77 percent, with trading value of 61.29 billion baht, rising in line with Asian stock markets on the back of a recovery in technology and chip stocks. This pushed DELTA shares higher and supported the overall index.

The SET index opened at 1,612.20 points, up 14.04 points or 0.88 percent. CGS International Thailand estimates today's trading range at 1,600 to 1,630 points and views yesterday's dip below 1,600 as a false signal. The market drew support from a surge in chip stocks and strong Microsoft earnings, which eased concerns about technology companies' artificial intelligence infrastructure spending. For stock recommendations, CGS International expects Delta's revenue to grow strongly in the second half of 2026, with third-quarter 2026 revenue forecast to rise 15 percent from the previous quarter, along with a sell recommendation at a profit-taking point of 273.00 baht and a stop-loss point of 261.00 baht. Meanwhile, GULF's second-quarter 2026 net profit is projected to increase 51 percent from a year earlier and 19 percent from the previous quarter to 10.7 billion baht, marking a sixth consecutive record high, while core earnings per share estimates for 2026 to 2028 are raised, with a profit-taking point at 66.50 baht and a stop-loss point at 65.25 baht.

Delta Electronics Thailand, or DELTA, is set to host the Delta Future Industry Summit 2026 on 14 August 2026 at the Nikko Hotel Bangkok, under the theme of upgrading Thailand's infrastructure to support the evolution of AI and electrification. The event is a closed-door conference for invited guests, with Industry Minister Varawut Silpa-archa delivering the opening keynote address, and senior executives from NVIDIA and IBM giving special lectures. There will also be two strategic panel discussions covering energy readiness for data centre expansion and the role of automation in promoting sustainable manufacturing, with experts from GPSC, Bangkok Bank, and other leading organisations sharing their perspectives. The general public can follow the live broadcast in Thai via Facebook and in English via YouTube and LinkedIn on DELTA's channels.