On Monday at 11:26 AM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) jumped by 7.03% or THB 18.00 to THB 274.00, with a trading value of THB 5.88 billion.
Krungsri Securities (KSS) noted that there is potential for a recovery in DELTA’s operating performance in 2027, driven by the company’s ability to adjust product prices and the continuously rising demand for products related to artificial intelligence.
Previously, DELTA’s net profit in the second quarter of 2026 declined by 33% quarter-on-quarter amid concerns over contracting gross margins, which had placed significant pressure on the company’s share price in recent months.
The brokerage shared a view consistent with the broader market expectation that DELTA may still be unable to raise product prices sufficiently to offset higher raw material costs—especially for printed circuit boards and diodes—in the third and fourth quarters of 2026. As a result, gross margins in the second half of 2026 are expected to remain stable at around 29%.
However, DELTA is anticipated to begin raising product prices in early 2027, or potentially sooner, supported by strong demand for AI-related products, particularly liquid cooling systems and power supplies. These products are expected to grow alongside increasing AI infrastructure investment by major cloud service providers, or hyperscalers.
Krungsri has maintained its 2026 profit forecast for DELTA at THB 32.8 billion, representing a 32% increase from the previous year. At the same time, the analyst raised its profit projections for 2027 and 2028 by 20% to reflect DELTA’s anticipated ability to adjust prices to compensate for higher raw material costs, starting from 2Q26.
Such price adjustments are expected to positively impact both revenue and gross margin in 2027 and 2028. Additionally, Krungsri has revised its revenue assumptions for DELTA’s Power Electronics segment upward, reflecting increased demand stemming from AI infrastructure investments by hyperscalers.
Based on these new estimates, DELTA’s profit growth rate is projected to accelerate to 51% in 2027, up from 42% in 2026, propelled by product price adjustments, gross margin recovery, and heightened demand for AI infrastructure products.
As a result, Krungsri has upgraded its recommendation on DELTA to ‘Buy’ while raising the target price to THB 320 from the previous THB 244. The brokerage believes the current share price does not yet fully reflect the upside potential from DELTA’s ability to raise prices in response to rising raw material costs.
