Key facts
- Delta Electronics Thailand's share price surged 165% between March and November.
- The company reached a market capitalization of 1.88 trillion baht, becoming Thailand's most valuable listed company.
- CEO Victor Cheng expressed concerns about the 'not healthy' share price escalation.
- Delta Electronics is investing $300 million in two new factories to support increased production.
- The company's revenue grew 6.5% year-over-year in Thai Baht terms, despite a strong Baht.
- Management has raised full-year revenue guidance to 15-20%.
Delta Electronics Thailand has become the country's most valuable listed company, reaching a market capitalization of 1.88 trillion baht ($100 billion), following a 165% surge in its share price from March to November. However, this rapid ascent has drawn concern from CEO Victor Cheng, who described the escalation as 'not healthy,' prompting a dialogue with the Stock Exchange of Thailand (SET).
Analysts are questioning the sustainability of Delta's valuation, which stands at approximately 78 times its 12-month forward earnings, significantly above the SET Index benchmark. Some predict a potential 25% drop from recent highs, citing challenges in the global electric vehicle sector despite positive prospects in artificial intelligence. The company's shares are also noted for their limited public float, with only 23% traded.
Despite market concerns, Delta Electronics is pursuing growth strategies, including a $300 million investment in two new factories in Chachoengsao province, expected to be operational by the third quarter of next year. These facilities will enhance production of power supply and thermal management products. The company sees significant opportunities in Southeast Asia's burgeoning AI market and the growth of data centers in Thailand.
Financially, Delta reported an 18% year-over-year surge in sales and service income to $1.3 billion, driven by strong momentum in Power Electronics and ICT Infrastructure, fueled by AI-related investments. Revenue in Thai Baht terms grew 6.5% year-over-year, impacted by a strong Baht. Gross margin narrowed to 25.0% in the second quarter of 2025, and operating profit fell 12% year-over-year. The company also resolved a patent infringement case with Vicor Corporation and incurred OECD top-up taxes, leading to a 7% year-over-year decrease in first-half net profit. Delta maintains a solid balance sheet with a net cash position of THB11.7 billion and has raised its full-year revenue guidance to 15-20%.