Bualuang Securities (BLS) wrote that Delta Electronics (Thailand) (SET: DELTA) reported a net profit of THB 7.8 billion in 3Q26, marking a 4% YoY and 28% QoQ increase. When adjusting for an impairment loss on production-facility improvements and foreign exchange gains, core profit stood at THB 7.3 billion, largely flat YoY but rising 31% QoQ.
However, this figure came in 17-18% below both Bualuang’s estimate and the Bloomberg consensus, primarily due to lower gross margins and higher selling, general, and administrative expenses than projected.
Revenue during the period was THB 76 billion ($2.28 billion), up 42% YoY and 16% QoQ. In US dollar terms, revenue grew 38% YoY and 13% QoQ. Breaking down by segment, Power Electronics sales rose 37% YoY and 12% QoQ, Mobility sales dropped 23% YoY but improved 10% QoQ, while Infrastructure sales jumped 44% YoY and 20% QoQ.
Gross margin for the quarter was 27.3%, below last year’s 28.3% but slightly above the previous quarter’s 26.8%. This metric is still pressured by high inventory provisions, elevated raw-material costs, and ongoing supply-chain issues.
The company recorded an additional inventory provision of THB 1.9 billion in 3Q26, compared to THB 804 million in 2Q26. The SG&A-to-sales ratio was 16.9%, up from 14.2% in 3Q25 but slightly better than 17.4% in 2Q26. Meanwhile, royalty fees decreased to 6% of sales, down from 7% in the previous quarter.
Looking ahead, Bualuang expects DELTA’s core profit to recover YoY and QoQ in 4Q26, supported by continued revenue growth as supply constraints ease and a sizable backlog is delivered. Gross margin is also anticipated to improve as inventory provisions and urgent sourcing costs recede, though raw-material costs will likely remain a headwind.
As a result, the brokerage has cut DELTA’s 2026 core profit forecast by 18% to THB 32 billion and lowered its 2027 valuation to a 65x price-to-earnings ratio, or about 0.5 standard deviations above the stock’s historical mean, with the target price revised down to THB 300 per share.
