On October 10, 2025, Delta Electronics (Thailand) Public Company Limited (SET: DELTA) shares stood at THB 176.00 per share at 10:56 A.M. (Bangkok time), down THB 21.50 or 10.89%, with a trading value of THB 2.05 billion.
DELTA’s share price dropped after the Stock Exchange of Thailand (SET) announced DELTA as a security with significant price and trading volume fluctuations compared to previous periods and is currently under information clarification (Trading Alert List).
In addition, DELTA is subject to Level 1 trading supervision measures: prohibition of calculating trading limits and application of Cash Balance from October 10, 2025, to October 30, 2025.
KGI Securities stated in its analysis that DELTA’s core business profit in 3Q25 is expected to be THB 5.5 billion (a decrease of 11% year-on-year, but an increase of 23% quarter-on-quarter) driven by AI Data Center sales. As a result, core business profit for the first nine months of 2025 would be THB 15.1 billion (down 6% year-on-year).
The analytics team expects sales in 3Q25 to hit a new record high at USD 1.5 billion (up 24% year-on-year, and up 13% quarter-on-quarter), bringing total sales for the first nine months of 2025 to USD 4.1 billion (up 20% year-on-year).
The favorable product mix is expected to outweigh the impact of the baht’s appreciation, projecting the gross profit margin in 3Q25 at 25.6% (down 2 ppts year-on-year, up 0.6 ppts quarter-on-quarter).
At the same time, the SG&A to sales ratio is expected to be controlled at 13%, as no new royalty fee negotiations have taken place.
The outlook for the second half of 2025–2026 appears brighter than previously assessed by analysts (less concern over down-cycle risks, earlier-than-expected demand acceleration, and potential demand softening after trade tariffs take effect). After KGI Taiwan revised its view on the cycle reversal, DELTA’s assumptions were reviewed (increasing this year’s sales forecast by 2% and 2026 by 6%), resulting in upward profit revisions for 2025–2026 by another 4–8%.
DELTA’s share price movement may prompt Delta Electronics Inc. (2308.TW / 2308 TT) bondholders to convert bonds. In January 2025, Delta International Holding B.V., a subsidiary of Delta Electronics Inc., issued USD 525 million worth of 5-year zero coupon convertible bonds due in 2030. Every USD 200,000 bond can be converted to 37,086.3539 DELTA shares at an exercise price of THB 187.6. Bondholders may redeem early at 106.31% of face value after 3 years or at 110.74% at maturity (January 21, 2030).
According to KGI’s calculation, DELTA’s share price above THB 199.5 (about 6.31% higher than the exercise price) would be the level that incentivizes bondholders to convert and sell shares in the market for profit.
Given this positive outlook and industry cycle reversal, the securities company re-rate DELTA’s PER (from the average to +0.5 S.D.) and adjust the year-end 2026 target price to THB 130.00, based on a PER of 63.0x (DELTA’s historical average +0.5 S.D.), up from the previous 83.00 baht.
Although analysts expect DELTA to benefit from the AI (Artificial Intelligence) trend, the current share price is considered very expensive, trading at about a 100x PER. Therefore, the recommendation is to “Sell” DELTA.
