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.
Delta Electronics (Thailand) Public Company LimitedMaybank upgrades to buy, sees strong profit recovery and attractive entry point despite target cut.
