Maybank Securities (Thailand) wrote that Delta Electronics Taiwan reported robust sales growth in December 2025 and for the fourth quarter of the year, reflecting continued high demand for server power solutions. Sales during the last month reached TWD53.7 billion, marking a 39% year-on-year increase and 6% month-on-month growth.
For the full year 2025, the company’s sales totalled TWD555 billion, up 32% from the previous year, while fourth-quarter revenue climbed to TWD162 billion, representing a 42% year-on-year and 8% quarter-on-quarter surge.
The strong figures are attributed mainly to robust demand for server power products. Although the newly launched liquid-cooled rack shipments and other applications experienced seasonal softness in 4Q25, demand remained solid.
Looking forward to 2026, Delta Taiwan is expected to benefit from its existing server power modules, infrastructure BBUs, and liquid-cooling cabinets. Furthermore, the company plans to launch new high-voltage direct current (HVDC) systems, which are seen as vital for AI and high-performance computing data centers required by hyperscale clients.
Delta Electronics (Thailand) (DELTA) is also poised for growth, with fourth-quarter 2025 sales expected to increase by over 20% year-on-year, driven by new output from Wellgrow 3 & 4 factories. Production of liquid-cooling solutions based on Taiwan’s technology will begin in 2026, and ongoing expansions at the Bangpoo facilities—set to be completed in the first half of 2026—are expected to be key drivers for the next two to three years.
Maybank sees upside risk to its 2026 sales forecast of USD6.7 billion (+27% year-on-year) and core earnings of THB25 billion (+25% year-on-year). However, Delta’s valuation remains a concern, with shares trading at 65-70 times estimated 2026 earnings, compared to a 30x PE for global AI peers.
As a result, the brokerage firm maintains a ‘Sell’ rating on DELTA with a target price of THB109 per share.
