On Monday at 2:02 PM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) rose by 7.26% or THB 17.00 to THB 251.00, with a trading value of THB 4.58 billion.
Yuanta Securities (Thailand) noted that DELTA reported a net profit of THB 7.26 billion for the fourth quarter of 2025. Excluding special items—a foreign exchange loss of THB 228 million and compensation gains of THB 309 million—the company’s normalized profit for 4Q25 was THB 7.18 billion, representing increases of 12% quarter-on-quarter (QoQ) and 250% year-on-year (YoY).
These results closely matched Yuanta’s forecast of THB 7.0 billion, and notably exceeded the market consensus of THB 6.7 billion by approximately 7%. The growth in normalized profit stemmed mainly from strong sales in the Power Electronics segment.
DELTA’s core revenue in 4Q25 reached THB 57.7 billion, up 9% QoQ and 38% YoY, with US dollar-denominated revenue at $1.8 billion, a 9% QoQ and 50% YoY increase—broadly in line with expectations.
The Power Electronics product group delivered sales of $1.27 billion (+18% QoQ, +95% YoY), while the Mobility (EV) segment lagged at $183 million (-22% QoQ, -39% YoY), and Infrastructure at $290 million (flat QoQ, +38% YoY). The exceptional performance in Power Electronics—especially related to demand in the data center sector—was the main driver of total revenue growth, whereas the EV segment continued to show weakness.
Gross profit margin (GPM) for 4Q25 was 28.6% (+22 bps QoQ, +611 bps YoY), outperforming expectations of 27.0%. This came despite the Thai baht appreciating 0.2% QoQ and 7.7% YoY against the US dollar, which typically pressures margins. A higher contribution from the high-margin Power Electronics segment—rising from 65.5% of total revenue in 3Q25 to 70.9% in 4Q25—supported margin growth.
Selling, General & Administrative expenses (SG&A) came in at THB 8.5 billion (+12% QoQ, +20% YoY), with R&D expenses down 4% QoQ, but up 26% YoY. The company’s effective tax rate was 14.5%, impacted by the implementation of the Global Minimum Tax.
DELTA announced a full-year 2025 dividend payment of THB 0.60 per share, representing a yield of 0.3%. The ex-dividend (XD) date is set on February 26, 2026.
For the full year 2025, normalized profit totaled THB 23.1 billion (+28% YoY), aligning with Yuanta’s projections. Looking ahead to 2026, global data center investments are expected to remain robust, while sales of liquid cooling products are anticipated to become increasingly significant in the latter half of the year.
This should support continued growth in both revenue and margins. Yuanta forecasts 2026 normalized profit at THB 34 billion (+49% YoY), based on expected US dollar revenue of $7.5 billion (+24% YoY) and a GPM of 29%.
Yuanta maintains its year-end 2026 target price for DELTA at THB 160 per share. However, the recommendation has been downgraded to ‘Sell’ due to its high valuation—currently trading at a 2026 PER of 79x, which is considered significantly more expensive than global tech peers. The brokerage suggests that investors seeking exposure to AI and data center growth may find attractive alternatives at lower valuations.
