JPMorgan expresses a bullish view on Delta Electronics (Thailand) (SET: DELTA), giving the company an ‘Overweight’ rating. The upward revision comes in response to robust structural demand for datacenters and significant production capacity expansion, as highlighted during Delta Taiwan’s recent parent company briefing.
The investment bank noted that DELTA is set to bring three new manufacturing plants online this year. This strategic move is expected to ease previous capacity bottlenecks and support burgeoning demand from the global datacenter industry.
Additionally, DELTA has announced plans for two further plants to be operational by mid-2027. These initiatives will more than double the company’s production footprint in Thailand, underpinning continued order visibility beyond 2028.
Parent company guidance further revealed a promising earnings trajectory. DELTA is projected to outperform typical seasonal trends in the first quarter of 2026, with an improved quarter-on-quarter performance compared to the usual high single-digit percentage decline. This will be followed by a strong rebound in the second quarter of 2026.
Longer-term growth will be supported by the adoption of High Voltage Direct Current (HVDC) power racks beginning in the second half of 2026, alongside rising server power content driven by new products such as GB300 and VR200. These trends are set to boost both the power and non-power supply unit (non-PSU) segments, supporting sustained earnings growth for the company.
Reflecting these positive fundamentals, JPMorgan has raised its earnings estimates for DELTA by 14% for 2026 and 11% for 2027, with a price target of THB 297, to account for the improved outlook and heightened structural growth visibility in the datacenter segment.
