ttb Wealth Securities has reiterated its BUY recommendation on Delta Electronics (Thailand) Plc. (SET: DELTA), raising its 12-month target price to Bt420 per share from Bt350. This reflects an anticipated new product order and DELTA’s stronger-than-expected 1Q26 earnings. The new target price suggests an upside potential of 19%.
The brokerage increased its earnings estimates for DELTA by 11-15% per annum, citing expectations for a significant product order from an existing key customer in 4Q26. This involves a new generation of power supply management units for next-generation GPU platforms, which come with a higher price point and improved margins. DELTA also reported a 57% year-on-year and 10% quarter-on-quarter increase in USD sales in 1Q26, largely from rising AI-related orders. The company projects ongoing quarterly sales growth of over 10% into 2Q26, with a support by the scaling of new liquid-cooling products and production relocations from Delta Taiwan in 3Q26.
For 2Q26, ttb Wealth Securities forecasts 69% y-y and 15% q-q growth, while 3Q26 is expected to see 61% y-y and 17% q-q growth. This shift aligns with increasing AI-driven demand for higher-capacity power solutions. With over a 50% estimated market share (with its parent Delta Taiwan), DELTA is well-positioned in the power supply sector.
DELTA is named as the top electronics sector pick due to its strong earnings visibility and direct exposure to AI-related products. The report advocates switching investments from Hana Microelectronics and KCE Electronics to DELTA, noting weaker earnings and uncertain outlooks for the two peers.
