Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

Delta Electronics Thailand  / Equity Bottom-Up

<p>We maintain HOLD rating on DELTA with a new 2021E target price at Bt84.00, from Bt56.50, derived from 21.2xPE’21E, which is +1SD of its 5-years trading average.</p><div>•DELTA reported 2Q20 net profit at Bt2.0bn (+132%YoY, +136%QoQ). driven by cloud storage and data center-related businesses, as Covid-19 situation spurred work-from-home related services demand.</div><div>•We revised up our 2020-22 net profit forecasts by 105%, 23%, and 20%, respectively, in response to solid 2Q20 performance.</div><div>•DELTA revenue would be even more solid in 2H20E, given the recovery in EV related products. However, 2H20E earnings should slightly soften due to normalization in demand for data center-related business.</div><div>•On Friday, DELTA also announced a disposition and acquisition of the investments in the associated companies. We estimated it has limited at less than one percent of DELTA’s assets and earnings.</div><p>We think DELTA’s impressive performance has been largely priced in the 67% stock rally in July.</p><p></p><p><strong>Background</strong>: Delta Electronics (Thailand) Public Company Limited, The company is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts, the company is one of the world-leading producers of power supplies and electronic components that include cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand one each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica nad Váhom and Liptovsky Hradok) and Myanmar (Yangon).</p>

We maintain HOLD rating on DELTA with a new 2021E target price at Bt84.00, from Bt56.50, derived from 21.2xPE’21E, which is +1SD of its 5-years trading average.•DELTA reported 2Q20 net profit at Bt2.0bn (+132%YoY, +136%QoQ). driven by cloud storage and data center-related businesses, as Covid-19 situation spurred work-from-home related services demand.•We revised up our 2020-22 net profit forecasts by 105%, 23%, and 20%, respectively, in response to solid 2Q20 performance.•DELTA revenue would be even more solid in 2H20E, given the recovery in EV related products. However, 2H20E earnings should slightly soften due to normalization in demand for data center-related business.•On Friday, DELTA also announced a disposition and acquisition of the investments in the associated companies. We estimated it has limited at less than one percent of DELTA’s assets and earnings.We think DELTA’s impressive performance has been largely priced in the 67% stock rally in July.Background: Delta Electronics (Thailand) Public Company Limited, The company is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts, the company is one of the world-leading producers of power supplies and electronic components that include cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand one each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica nad Váhom and Liptovsky Hradok) and Myanmar (Yangon).

DELTA: Covid-19 Impact Surprisingly Turned Positive

<p><strong>We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading average.</strong></p>
<p><strong>The story:</strong></p>
<div>•Global player in IT infrastructure and EV components</div>
<div>•Growing power supply and data center markets</div>
<div>•Beneficiary of automobile industry’s transition to electric vehicles</div>
<div>•Will recover from the impact of Covid-19 in 2H20</div>
<div>•Challenges from the lingering trade war and baht appreciation</div>
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<p><strong>Risks: </strong></p>
<div>•Foreign exchange rate fluctuation</div>
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<p><strong>Background:</strong></p>
<p>Delta Electronics (Thailand) Public Company Limited is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts. The company is one of the world›s leading producers of power supplies and electronic components, including cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand and two each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica and Váhom and Liptovsky Hradok).</p>
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We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading average.
The story:
•Global player in IT infrastructure and EV components
•Growing power supply and data center markets
•Beneficiary of automobile industry’s transition to electric vehicles
•Will recover from the impact of Covid-19 in 2H20
•Challenges from the lingering trade war and baht appreciation

 

Risks: 
•Foreign exchange rate fluctuation


Background:
Delta Electronics (Thailand) Public Company Limited is a subsidiary of Delta Electronics, Inc. Delta Thailand is a manufacturer and exporter of power supplies and electronic equipment and parts. The company is one of the world›s leading producers of power supplies and electronic components, including cooling fans, EMI filters, and solenoids. At present, the company has 2 main plants in Thailand and two each in India (Rudrapur and Krishnagiri), Slovakia (Dubnica and Váhom and Liptovsky Hradok).


DELTA: Prime Beneficiary of Transition to Electric Vehicles

Thailand

Delta Electronics (Thailand) PCL designs and manufactures electronic equipment. The Company produces power systems for telecommunications, medical equipment, and industrial automation.  Delta also produces fans, electromagnetic interference filters, and solenoids.

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Delta Electronics Thailand (DELTA TB)

DELTA: Covid-19 Impact Surprisingly Turned Positive

We maintain HOLD rating on DELTA with a new 2021E target price at Bt84.00, from Bt56.50, derived from 21.2xPE’21E, which is +1SD of its 5-years...

Pi Securities PCL, Thailand

DELTA: Prime Beneficiary of Transition to Electric Vehicles

We initiate coverage of DELTA with a HOLD rating and a 2021E target price of Bt56.50, derived from 17.5x PE’21E, which is its 5-year trading...

Pi Securities PCL, Thailand

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