DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022

DELTA : Outstanding 2Q22 Earnings Leads to High 22E Base and Limited Growth in 23E

DELTA :  Growth Potential in 2022 Priced In

DELTA: Expected 2Q21E Recurring Profit at Bt531m (-21%YoY, +6%QoQ)

DELTA: Covid-19 Impact Surprisingly Turned Positive

DELTA: Earning Fell QoQ on Profitability Drop

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

Pi Research

Thai Equity - Bottom-up - Equities

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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

<ul>
<li>Starting from 1 January 2022, DELTA will be removed from the SET50 index calculation. We believe that a significant portion of investors will sell off, as the number of funds </li>
<li>We believe that there are no major changes in the company’s growth prospects. Therefore,the current valuation at 78xPE’22 is supported from SET-50 inclusion rather than a key change in fundamentals</li>
<li>We expect the company outlook in 2022-23 to benefit from growth in global ICT spending.Their Infrastructure segment will benefit from this as data center demand is driven by strong growth </li>
</ul>


Starting from 1 January 2022, DELTA will be removed from the SET50 index calculation. We believe that a significant portion of investors will sell off, as the number of funds 
We believe that there are no major changes in the company’s growth prospects. Therefore,the current valuation at 78xPE’22 is supported from SET-50 inclusion rather than a key change in fundamentals
We expect the company outlook in 2022-23 to benefit from growth in global ICT spending.Their Infrastructure segment will benefit from this as data center demand is driven by strong growth 


DELTA: Exclusion from SET50 Will Lead to Sell-Off