Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

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Equity Bottom-Up

<ul>
<li>Since 2Q22 results end-July, Delta Thailand has risen 31% compared to a 3% rise for Delta Taiwan and a 2% rise for Thailand's SET Index.</li>
<li>Delta Taiwan's gross margin has historically been consistently higher than Delta Thailand's. Delta Thailand is a significant licensor of IP from its parent, which could be one reason.</li>
<li>Historical data shows that the relative valuation can swing back over time and the current divergence of Delta Thailand vs. Delta Taiwan is historically extreme.</li>
</ul>


Since 2Q22 results end-July, Delta Thailand has risen 31% compared to a 3% rise for Delta Taiwan and a 2% rise for Thailand's SET Index.
Delta Taiwan's gross margin has historically been consistently higher than Delta Thailand's. Delta Thailand is a significant licensor of IP from its parent, which could be one reason.
Historical data shows that the relative valuation can swing back over time and the current divergence of Delta Thailand vs. Delta Taiwan is historically extreme.


Delta Taiwan Vs. Thailand Pairs Monitor: SET50 Index Driver, But Taiwan Margins Always Higher