EV player becomes Thai Stock Exchange darling

A Thai subsidiary of Taiwanese power supply and auto parts manufacturer Delta Electronics has become the most valuable company on the Stock Exchange of Thailand.

Such has been its growth trajectory that shares of Delta Thailand have climbed by some 163% over the past year, making it the nation’s largest company by market capitalisation as of January this year, surpassing Airports of Thailand.

The growth has been fuelled by investment in the emerging electric motor market. 

Delta Electronics said on 23 Feb that its EV business, which includes on-board chargers and battery management systems, will improve this year, after announcing improved financial results for last year. 

Chairman Yancey Hai said at the latest earnings call that “availability of materials and components has much recovered”.

Hai added that with stably increasing order volume, he expects the EV business to turn profitable this year. He also indicated that Delta’s products are “used in most of the new models by major US, European, and Japanese carmakers”.

Q4 2022 revenue was NT$105.6 billion ($3.46 billion), up by 26% on-year, with an operating margin for the quarter of 10.2%.

Notably, Delta Thailand recorded strong profit growth. The Thai subsidiary, responsible for the company’s production in Southeast Asia, India, and Eastern Europe, has plans to set up production of EV products in Hungary.

The company also expects the enormous demand for EV charging stations in the US to drive revenue growth.

Indeed, Delta Thailand reported a 129% increase in net profit for 2022 and has maintained a positive outlook for the next six months. According to observers, the company has profited in part from the pandemic supply-chain backlog in the region, with its power electronics segment delivering 77% of revenue in last year.