Analysts now set a higher price target for Delta Electronics, raising their fair value estimate from $782.65 to $804.05 as they factor in a slightly lower discount rate, revise revenue growth and margin expectations, and apply a higher future P/E multiple.
What's in the News
- MediaTek selected Delta Electronics and Bio architecture Formosana to provide construction and extended architectural construction supervision services for the Tonglu data center on rented land. The maximum contract value is TWD 512,685,000 including VAT, and the term runs from signing until contract completion (Key Developments).
- Delta and Siemens Smart Infrastructure entered into a global partnership to supply prefabricated, modular power solutions for data centers. The partnership targets hyperscale and colocation operators that are focused on AI and cloud computing workloads (Key Developments).
- Management indicated during the Third Quarter 2025 Analyst Meeting that Delta Electronics is actively looking for M&A opportunities. The focus is on targets that offer new technology or market access while meeting the company’s return and valuation criteria (Key Developments).
- Delta introduced its AI Data Center Microgrid Solution at Energy Taiwan 2025. The solution features solid state transformers with up to 98.5% efficiency and a portfolio that covers AI data centers, energy intensive industrial sites, utility scale projects, megawatt charging, and energy advisory services (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly from NT$782.65 to NT$804.05, reflecting updated model assumptions.
- The Discount Rate has edged down marginally from 6.93% to 6.92%, implying a slightly lower required return in the valuation model.
- The Revenue Growth assumption has been trimmed from 16.66% to 16.49%, indicating a modestly more conservative outlook for top line expansion.
- The Net Profit Margin assumption has fallen from 12.61% to 10.81%, pointing to a more cautious view on profitability.
- The Future P/E multiple has risen from 24.47x to 29.42x, indicating a higher valuation multiple applied to projected earnings.
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