Kiatnakin Phatra Securities (KKPS) maintained its “Buy” recommendation on Delta Electronics (Thailand) Public Company Limited (SET: DELTA) with a THB 340 target price, expecting limited impact on long-term earnings growth from a U.S. patent investigation involving its Taiwanese parent.
On 9 October 2026, the U.S. International Trade Commission (USITC) launched an investigation following a complaint by Vicor, an American power technology company, against DELTA Taiwan and 19 other companies. The dispute concerns power delivery technology used in AI servers, with Vicor seeking to block imports of infringing products into the U.S.
DELTA Thailand is not directly named in the investigation, although KKPS noted potential indirect exposure through its AI power business. No infringement has been established for DELTA Thailand, and its shipments remain unaffected.
KKPS expects the investigation to take approximately 16 – 18 months, with a settlement or product redesign considered more likely than prolonged import restrictions.
The brokerage cited the previous Vicor-Delta investigation, which lasted around 19 months before ending in a settlement in May 2025. DELTA Thailand recorded settlement-related expenses in the second quarter of 2025, when net profit declined 29.5% year-on-year to THB 4.63 billion.
However, KKPS attributed the profit decline mainly to other factors, including foreign-exchange losses, higher operating expenses and top-up taxes. The settlement expense was a one-off item, with no further related costs incurred thereafter.
While the current investigation could generate additional costs for DELTA Thailand, KKPS believes stronger AI demand and margin expansion could more than offset them. The brokerage also noted that the disputed technology covers only part of the AI power market, supporting its view that the impact on the company’s long-term earnings growth should be limited.
