On Wednesday at 3:02 PM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) slumped by 11.78% or THB 12.25 to THB 91.75, with a trading value of THB 3.22 billion.
According to CGS International Securities (Thailand) (CGSI), Delta Electronics (Thailand) saw its share price tumble by approximately 6% Wednesday morning, as investors digested a series of looming concerns weighing on the stock.
Among the key sources of pressure is market speculation over a possible 10% stock weight cap to be introduced by the Stock Exchange of Thailand (SET) as soon as July 2025, potentially limiting the company’s sway within the SET Index.
Legal uncertainties are also casting a shadow. Recent conversations with investors indicate that Delta Taiwan expects resolution of the ongoing Vicor litigation in the United States within the second or third quarter of this year. Potential legal fees and customer compensation associated with the lawsuit are likely to squeeze Delta’s earnings in the near term.
Additionally, the company is grappling with softer-than-anticipated revenue growth, dampening the outlook for second-quarter results and further fueling the sell-off.
At current levels, Delta’s valuations remain elevated. The analyst maintains a ‘Reduce’ rating on the company, suggesting investors to look for a more attractive entry point below THB 75 per share.
