Update shared on04 Aug 2025
Fair value Increased 26%Despite a decline in consensus revenue growth forecasts, Delta Electronics' fair value has been notably lifted as reflected in a higher price target, primarily driven by a significant expansion in its expected future P/E multiple.
What's in the News
- Delta inaugurated its Smart Manufacturing Innovation Center in Taiwan, enhancing customer support for smart and distributed manufacturing, and deepening its partnership with NVIDIA with a new Cyber-Physical Integration Classroom to promote digital twin and AI adoption.
- Announced partnership with Microchip Technology to incorporate advanced SiC technology in Delta's products, aiming to accelerate deployment of energy-efficient solutions for AI, mobility, automation, and infrastructure.
- Delta is constructing a new regional headquarters in Hoofddorp, Netherlands, a green building designed to achieve net-zero energy, boosting its EMEA presence with strong regional and national support.
- Reported strong revenue growth: cumulative sales Jan–May 2025 rose 25.5% year-over-year to TWD 200,746 million, with May and April showing 17% and 21.6% year-over-year monthly increases, respectively.
- Launched new products including a containerized AI data center solution, 800V HVDC architecture for AI data centers, and the energy-efficient 51.2T CPO Ethernet switch, advancing solutions for high-performance computing and sustainability.
Valuation Changes
Summary of Valuation Changes for Delta Electronics
- The Consensus Analyst Price Target has significantly risen from NT$512.78 to NT$627.72.
- The Future P/E for Delta Electronics has significantly risen from 24.53x to 30.08x.
- The Consensus Revenue Growth forecasts for Delta Electronics has significantly fallen from 12.8% per annum to 11.1% per annum.
Disclaimer
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