Kiatnakin Phatra Securities (KKPS) maintained its Buy recommendation and Bt340 price target for Delta Electronics (Thailand), arguing that selling pressure linked to a planned US$1.5 billion exchangeable bond (EB) deal was excessive. In its September 16 report, the brokerage cited an expected earnings recovery as reasons to remain positive.
KKPS expects the stock to recover and does not anticipate it dropping below the transaction’s Bt232 reference price.
Central to that view is the brokerage’s forecast for third-quarter 2026 earnings to rise sharply from the preceding quarter and reach a quarterly record. It expects gross profit margin to improve more than the market anticipates, providing a stronger earnings backdrop than during the previous bond transaction in January 2025.
The proposed securities will be issued by Delta Singapore, a subsidiary of Taiwan’s Delta Electronics. The zero-coupon offering consists of a US$500 million tranche maturing in 2027 and a US$1 billion tranche due in 2031.
Investors can begin exchanging the bonds for shares in the Thai-listed company on November 1, 2026. The two tranches carry exchange prices of Bt266.8 and Bt301.6, representing premiums of 15% and 30%, respectively, to the reference price.
Full exchange would involve the transfer of as many as 172.1 million DELTA shares, equivalent to 1.38% of outstanding shares. Those shares are already in existence, so the transaction would not expand the company’s share count or directly dilute EPS.
