JPMorgan has maintained its ‘Overweight’ rating on Delta Electronics (Thailand) Public Company Limited (SET: DELTA), raising the target price to THB 360.00 per share, following a strong 1Q26 earnings report.
DELTA posted a core profit after tax and minority interest (PATAMI) of THB 9.2 billion for the first quarter of 2026, surpassing JPMorgan’s estimate of THB 7.9 billion. This result accounted for 24% of the firm’s full-year forecast and 28% of consensus estimates.
Revenue reached THB 60.5 billion, representing a 6% increase quarter-on-quarter (QoQ), above the anticipated 3% QoQ growth. The positive momentum was driven by sustained strength in the company’s power electronics segment, particularly from the ramp-up of the GB300 server power supply units (PSU) for AI and data centers (+8.5% QoQ).
Infrastructure segment revenues rose 14.5% QoQ, supported by ongoing data center expansion in Southeast Asia—specifically in Malaysia, Australia, Thailand, and Vietnam. The automation segment remained stable, with flat growth compared to the previous quarter.
Gross margin for the quarter improved significantly to 31.7%, up from 28.6% in the previous quarter and above company guidance. This was primarily due to an increased mix of AI-related business within power electronics, with such products making up 71% of both 1Q26 and the prior quarter segment revenues.
JPMorgan has raised its EPS forecasts for 2026, 2027, and 2028 by 5%, 5%, and 8%, respectively. The revisions reflect a now-larger total addressable market (TAM) for server PSU, projected to see an 80% compounded annual growth rate (CAGR) from 2025 to 2028 (up from the previous 64% CAGR). The update also factors in higher dollar-per-watt pricing for dense PSUs and the upcoming VR200 product ramp.
As of 10:12 AM (Bangkok time) on Tuesday, the share price of DELTA gained 2.90% or THB 9.00 to THB 319.00, with a trading value of THB 1.28 billion.
