DELTA :  Growth Potential in 2022 Priced In

DELTA : Expensive Valuation and Recession Impact

DELTA: Exclusion from SET50 Will Lead to Sell-Off

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

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

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

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

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

<ul>
<li>We maintain our BUY rating but roll-over our TP by 1%to Bt423 based on38.6xPE’23E (5-Year average trading).Our rating reflects neutral outlook on DELTA’s23Eearnings growth due to a high 22E base.</li>
<li>Outstanding 2Q22 earnings should be unsustainable Net profit in 2Q22 was at Bt4.3bn (+53% YoY, +158% QoQ), which was 60% above our forecast, as well as consensus. Copper dropping </li>
<li>Sales in 2Q22 was at Bt28bn (+36% YoY,+14% QoQ),driven QoQ and YoY by continued strong growth in EV power,thermal fan, and data center segments,which should be the trend going forward.</li>
</ul>


We maintain our BUY rating but roll-over our TP by 1%to Bt423 based on38.6xPE’23E (5-Year average trading).Our rating reflects neutral outlook on DELTA’s23Eearnings growth due to a high 22E base.
Outstanding 2Q22 earnings should be unsustainable Net profit in 2Q22 was at Bt4.3bn (+53% YoY, +158% QoQ), which was 60% above our forecast, as well as consensus. Copper dropping 
Sales in 2Q22 was at Bt28bn (+36% YoY,+14% QoQ),driven QoQ and YoY by continued strong growth in EV power,thermal fan, and data center segments,which should be the trend going forward.


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