Phillip Securities (Thailand) stated that Delta Electronics (Thailand) Public Company Limited (SET: DELTA) is expected to report a 4Q25 profit of THB 7.22 billion, up 235% year-on-year, driven by higher revenue and gross profit margin (GPM) backed by accelerated deliveries to cloud service clients. However, this is a 3% decline quarter-on-quarter due to a high base from one-off items recorded in 3Q25.
For the full year 2025, DELTA’s profit is estimated at THB 24.78 billion, an increase of 30.8% from the previous year, with continued growth momentum into 2026, supported by ongoing data center projects and a new factory to accommodate new products such as liquid cooling, which is expected to see growing demand.
For 4Q25, sales revenue is projected at $1.95 billion, up 62.50% YoY and up 18% QoQ, buoyed by urgent shipment demand from cloud service clients. Data center & AI segment revenue is estimated at 76% of total, while mobility products remain soft, mainly from the U.S. market, but with a small revenue share of just 10%.
The average THB/USD exchange rate for the quarter was 32.20. Total revenue in Thai baht is expected at THB 64 billion, up 52.30% YoY and 19.40% QoQ, with a gross profit margin of 27.50%—higher year-on-year due to a larger proportion of AI products, but lower quarter-on-quarter due to a special reversal of inventory provisions in the previous quarter.
The 2026 outlook remains positive, thanks to the ongoing AI trend and the launch of new products. Revenue is expected to grow robustly from continuous data center projects and new plants at Wellgrow and Bangpoo Industrial Estates, boosting capacity and new product lines such as liquid cooling solutions for data centers, which are key growth drivers. The 2026 profit is forecast at THB 27.84 billion, up 12.30% year-on-year.
Demand for liquid cooling equipment is expected to rise as next-generation chips—such as Nvidia’s “Blackwell-Rubin” and other brands used in large-scale AI training and hyperscale data centers—are significantly raising power consumption at data centers.
Major U.S. application developers are likely to increase budgets in 2026, supporting rising shipment volumes of key midstream components such as memory chips and liquid cooling. Liquid cooling—previously developed and sold well by DELTA Taiwan—is expected to support Delta Thailand further in 2026.
The brokerage set the 2026 target price at THB 230 per share, based on a price-to-earnings ratio (P/E) of 100x (current average trading at 117.40x). The recommendation has also been upgraded to “Buy” from “Hold.”
