Asia Plus maintains Buy on DELTA with 342 baht target, expecting 3Q26 profit to peak for the year

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โดย HoonVision·THTW·Read original
Summary · why it matters

Asia Plus Securities stated that August 2026 sales at DELTA Taiwan, the parent company of DELTA, came in at 64 billion Taiwan dollars, down 4% month-on-month but still up 35% year-on-year, and above the 2Q26 average of 61 billion Taiwan dollars. As a result, combined sales for the first two months of the third quarter, July 2026 through August 2026, reached 130 billion Taiwan dollars, or 41% growth year-on-year. Although parent company sales declined, DELTA's own sales in the same period do not necessarily have to fall in tandem, because parent company sales reflect the entire group including subsidiaries worldwide, which have different timing for production, product delivery, and revenue recognition. However, DELTA Thailand's sales tend to move in the same direction as the parent company, with a correlation of roughly 96%. The research team therefore expects DELTA's July 2026 to August 2026 sales to still grow better than in 2Q26, just like the parent company. In addition, the raw material shortage problems that arose in 2Q26 began to ease from July 2026. Overall, the research team views that DELTA's 3Q26 sales will grow both quarter-on-quarter and year-on-year, while margins should improve quarter-on-quarter and royalty payments as a share of sales will decline quarter-on-quarter, as products manufactured under DELTA's own technology are expected to account for a higher proportion in the second half of 2026, pushing 3Q26 profit to its highest point of the year. The research team also estimates normal profit for 2026 to 2027 at 35 to 49 billion baht, or average annual growth of 42%, and maintains its Buy recommendation, believing profit has already passed its low point for the year in 2Q26 and that second-half 2026 profit will be better than the first half. It sets a target price of 342.00 baht.

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Asia Plus maintains Buy with 342 baht target, expecting 3Q26 profit to peak for the year on stronger sales and improving margins.

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