On Wednesday at 10:48 AM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) rose by 1.55% or THB 2.50 to THB 163.50, with a trading value of THB 440.21 million.
Globlex Securities has upgraded its recommendation for Delta Electronics (Thailand) to ‘Buy,’ raising its target price to THB 196 per share from the previous THB 160. The brokerage firm cited robust global demand for AI data centers as the key catalyst for DELTA’s earnings growth, driving investor interest and helping to support the SET Index above 1,300 points.
Globlex forecasts DELTA’s profit momentum to continue through the rest of this year. Net profit for the second half of 2025 is projected to reach THB 12 billion, rising from THB 10.1 billion in the first half, bolstered by strong demand for power electronics and IT infrastructure related to AI. This is expected to offset the impact from weaker electric vehicle (EV) sales and the strengthening baht.
Key drivers supporting DELTA, according to the Globlex analysis, include:
- Surging AI demand, evidenced by Oracle’s order backlog topping $450 billion, reflecting robust global AI investment.
- A weaker baht in the short term; the analyst anticipates the Thai baht will depreciate to THB 33-34 per US dollar in 4Q25, supporting export profits.
- Approval from the Board of Investment (BOI) on tax credit measures, which will cut DELTA’s effective tax rate to 7% (from 13%) for 2026-2027.
- Exceptional growth in IT infrastructure businesses, with revised growth expectations increased from 12% to 28% for 2025.
DELTA’s net profit for 2025 is now forecast at THB 21.13 billion, an 11.6% rise year-on-year. Profits are projected to further climb to THB 28.82 billion (+36%) in 2026 and THB 32.92 billion (+14%) in 2027. Earnings per share (EPS) is expected to reach THB 2.64 in 2027, based on a P/E ratio of 85 times. Globlex views this valuation as reasonable, underscoring DELTA’s leadership in the AI supply chain and efficient cost control.
Despite challenges from currency fluctuations and escalating R&D expenses, the analyst views DELTA as the ‘Undisputed AI Play’ of the Thai equities market, stating that the company’s position in AI Data Centers will outweigh potential headwinds.
DELTA remains a top pick in Thailand’s AI-driven investment theme, with further upside potential supported by tax incentives and strong global demand.
