Latest news with #DeltaThailand
The Star
5 days ago
- Business
- The Star
Thailand's Delta sees AI boom boosting sales
Delta Electronics (Thailand) chief executive officer Victor Cheng. — Bloomberg BANGKOK: Delta Electronics (Thailand) Pcl, the country's most valuable publicly traded company, is predicting 'double-digit' sales growth to continue for at least the next couple of years on rising demand for artificial intelligence (AI)-related tech, says chief executive officer Victor Cheng. The maker of components for data centres and electric vehicles is boosting investment to fuel its expansion. The company planned to raise its sales forecast for the second half of this year. AI-related products, such as networking and data-centre power equipment, will account for half of Delta Thailand's sales by the end of the year, up from 42% in the latest quarter, the company forecasts. It is among South-East Asian suppliers benefiting as customers including Nvidia Corp expand in the region and beyond to tap rising demand for services such as generative AI. 'All the applications involving AI will continue to grow,' Cheng said. 'This business is not slowing down.' Among challenges is a US tariff of 19% on Thai exports, though Cheng said he isn't too worried as the company can 'pretty much pass on all the tariffs to customers.' The United States accounts for as much as 35% of Delta Thailand's sales, he said. — Bloomberg
Bangkok Post
5 days ago
- Business
- Bangkok Post
Delta Electronics says AI will fuel ‘double-digit' growth
Delta Electronics (Thailand) Plc is predicting 'double-digit' sales growth to continue for at least the next two years on rising demand for AI-related technology, says chief executive officer Victor Cheng. The SET-listed maker of components for data centres and electric vehicles is increasing investment to fuel its expansion, Mr Cheng said in an interview. The company also plans to raise its sales forecast for the second half 2025, he said, without disclosing the estimate. AI-related products, such as networking and data-centre power equipment, will account for half of Delta Thailand's sales by the end of the year, up from 42% in the latest quarter, the company forecasts. Thailand's biggest listed company by market capitalisation is among the Southeast Asian suppliers benefiting as customers including Nvidia expand in the region and beyond to tap rising demand for services such as generative artificial intelligence. 'All the applications involving AI will continue to grow,' Mr Cheng said. 'This business is not slowing down.' Among challenges is a US tariff of 19% on imports of Thai goods, though Mr Cheng said he isn't too worried as the company can 'pretty much pass on all the tariffs to customers'. The US accounts for as much as 35% of Delta Thailand's sales, he said. Second-half performance will benefit from a refund of some of the tariffs Delta Thailand had to pay upfront to customers earlier in the year, the company says. The United States recently set Thailand's tariff rate at 19% after previously threatening 36%. With Nvidia and its peers releasing new AI hardware at a rapid clip, Delta and its competitors are under pressure to deliver everything from power supply to thermal heating solutions to fit the advanced computing equipment. Data centre capacity in the Asia-Pacific region will more than double by 2030, requiring investment of more than $800 billion, according to Moody's Corp. 'Momentum is strong,' Mr Cheng said. 'The data-centre segment is the one that's propping up our both top lines and bottom lines.' Delta shares trading on the Stock Exchange of Thailand have more than doubled from an April low, bringing its SET-leading market capitalisation to 1.9 trillion baht, far ahead of local peers. In November, the SET introduced trading curbs on the company's shares after its surging price triggered a surveillance mechanism. 'I continue to say that I don't like the stock price to be too high,' Mr Cheng said. 'If it's so high I don't know how well it will be sustained and somebody is going to get hurt.' Analysts say Delta is one of just a few Thai companies well-positioned to benefit from the data centre boom. The company is expanding its research and development operations in Thailand by hiring more designers and entering new areas such as thermal simulation engineering. It has recruited more than 100 engineers this year, bringing the total to about 400 in the country. Overall, Taiwan-based Delta has about 20,000 employees in Thailand, its biggest global base. Its two new production facilities in the Wellgrow industrial estate in Chachoengsao will come online in the fourth quarter. The additional capacity will help it meet demand for power thermal solutions and other components. 'In the next few years, AI and digitisation being smarter and faster will support our growth,' Mr Cheng said. 'We just want to maintain this double-digit growth' and 'discipline in our profit margin management'.
Business Times
6 days ago
- Business
- Business Times
Thailand's Delta sees AI boom boosting sales for coming years
[BANGKOK] Delta Electronics (Thailand), the country's most valuable publicly traded company, is predicting 'double-digit' sales growth to continue for at least the next couple of years on rising demand for artificial intelligence (AI)-related tech, chief executive officer Victor Cheng said. The maker of components for data centres and electric vehicles is boosting investment to fuel its expansion, Cheng said. The company also says it plans to raise its sales forecast for the second half of this year, without disclosing what its estimate is. AI-related products, such as networking and data-centre power equipment, will account for half of Delta Thailand's sales by the end of the year, up from 42 per cent in the latest quarter, the company forecasts. It is among South-east Asian suppliers benefiting as customers, including Nvidia, expand in the region and beyond to tap rising demand for services such as generative AI. 'All the applications involving AI will continue to grow,' Cheng said. 'This business is not slowing down.' Among challenges is a US tariff of 19 per cent on Thai exports, though Cheng said that he is not too worried as the company can 'pretty much pass on all the tariffs to customers'. The US accounts for as much as 35 per cent of Delta Thailand's sales, he said. Second-half performance will benefit from a refund of some of the tariffs Delta Thailand had to pay upfront to customers earlier in the year, the company says. US President Donald Trump has recently set Thailand's tariff rate at 19 per cent after previously threatening 36 per cent. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up With Nvidia and its peers releasing new AI hardware at a rapid clip, Delta Thailand and its competitors are under pressure to deliver everything from power supply to thermal heating solutions to fit the advanced computing equipment. Data centre capacity in the Asia-Pacific region will more than double by 2030, requiring investment of more than US$800 billion, according to Moody's. 'Momentum is strong,' Cheng said. 'Data-centre segment is the one that's propping up both our top lines and bottom lines.' Shares of the company have more than doubled from an April low, bringing its market capitalisation to about US$60 billion and putting it far ahead of local peers. Analysts cite it as one of just a few Thai companies well-positioned to benefit from the data centre boom. In November, the local stock exchange introduced trading curbs on the company's shares after its surging price triggered a surveillance mechanism. 'I continue to say that I don't like the stock price to be too high,' Cheng said. 'If it's so high, I don't know how well it will be sustained, and somebody is going to get hurt.' The company is expanding its research and development operations in Thailand by hiring more designers and entering new areas such as thermal simulation engineering. It has recruited more than 100 engineers this year, bringing the total to about 400 in the country. Overall, it has about 20,000 employees in Thailand, its biggest global base. Its two new production facilities in the Wellgrow industrial estate near Bangkok will come online in the fourth quarter. The additional capacity will help it meet demand for power thermal solutions and other components. 'In the next few years, AI and digitisation being smarter and faster will support our growth,' Cheng said. 'We just want to maintain this double-digit growth' and 'discipline in our profit margin management'. BLOOMBERG
Mint
6 days ago
- Business
- Mint
Thailand's Delta Sees AI Boom Boosting Sales for Coming Years
(Bloomberg) -- Delta Electronics (Thailand) Pcl, the country's most valuable publicly traded company, is predicting 'double-digit' sales growth to continue for at least the next couple of years on rising demand for AI-related tech, Chief Executive Officer Victor Cheng said. The maker of components for data centers and electric vehicles is boosting investment to fuel its expansion, Cheng said in an interview. The company also says it plans to raise its sales forecast for the second half of this year, without disclosing what its estimate is. AI-related products, such as networking and data-center power equipment, will account for half of Delta Thailand's sales by the end of the year, up from 42% in the latest quarter, the company forecasts. It is among Southeast Asian suppliers benefiting as customers including Nvidia Corp. expand in the region and beyond to tap rising demand for services such as generative artificial intelligence. 'All the applications involving AI will continue to grow,' Cheng said. 'This business is not slowing down.' Among challenges is a US tariff of 19% on Thai exports, though Cheng said he isn't too worried as the company can 'pretty much pass on all the tariffs to customers.' The US accounts for as much as 35% of Delta Thailand's sales, he said. Second-half performance will benefit from a refund of some of the tariffs Delta Thailand had to pay upfront to customers earlier in the year, the company says. US President Donald Trump has recently set Thailand's tariff rate at 19% after previously threatening 36%. With Nvidia and its peers releasing new AI hardware at a rapid clip, Delta Thailand and its competitors are under pressure to deliver everything from power supply to thermal heating solutions to fit the advanced computing equipment. Data center capacity in the Asia-Pacific region will more than double by 2030, requiring investment of more than $800 billion, according to Moody's Corp. 'Momentum is strong,' Cheng said. 'Data-center segment is the one that's propping up our both top lines and bottom lines.' Shares of the company have more than doubled from an April low, bringing its market capitalization to about $60 billion and putting it far ahead of local peers. Analysts cite it as one of just a few Thai companies well-positioned to benefit from the data center boom. In November, the local stock exchange introduced trading curbs on the company's shares after its surging price triggered a surveillance mechanism. 'I continue to say that I don't like the stock price to be too high,' Cheng said. 'If it's so high I don't know how well it will be sustained and somebody is going to get hurt.' The company is expanding its research and development operations in Thailand by hiring more designers and entering new areas such as thermal simulation engineering. It has recruited more than 100 engineers this year, bringing the total to about 400 in the country. Overall, it has about 20,000 employees in Thailand, its biggest global base. Its two new production facilities in the Wellgrow industrial estate near Bangkok will come online in the fourth quarter. The additional capacity will help it meet demand for power thermal solutions and other components. 'In the next few years, AI and digitization being smarter and faster will support our growth,' Cheng said. 'We just want to maintain this double-digit growth' and 'discipline in our profit margin management.' More stories like this are available on
Yahoo
28-03-2025
- Business
- Yahoo
Delta Thailand Becomes Asia's Worst Stock After $30 Billion Rout
(Bloomberg) — Just four months ago, Delta Electronics (Thailand) Pcl's shares were outpacing global peers, prompting a series of moves from Thai market authorities to halt the rally. Now, the stock is in a stark reversal. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes Affordable Housing Developers Stalled by Blocked Federal Funds Its shares have cratered more than 50% in 2025, notching a steeper decline than any of the world's electronic-part makers worth at least $500 million, according to data compiled by Bloomberg. This year's tumble wiped out about $30 billion of Delta's market value and made the stock the biggest laggard on the MSCI Asia Pacific Index. The slide for what was once Thailand's most valuable stock is an extreme example of how the artificial intelligence craze has created excessive valuations. The slump, which began after shares reached a record high in November, accelerated after the stock exchange's proposed index weighting curbs and lower-than-expected earnings. The company faces 'key headwinds to earnings from rising cost structure' and slowing growth, said Yugi Takeshima, an analyst at Maybank Securities (Thailand) Pcl. The AI boom is unlikely to create significant growth for Delta in 2025, according to Takeshima, who has a sell recommendation on the stock. READ: Delta Thailand's 165% Stock Surge Unhealthy, Says CEO The unit of Taiwan's Delta Electronics Inc. makes components for automobiles and data center chargers, among other products. Its stock shed 23% on Feb. 17 after reporting full-year net income that missed analysts' estimates. The company this week disclosed a 54% slide in fourth-quarter earnings and clarified the reasons for its poor results. READ: Delta Thailand Stock Surge May Wane as AI Boost Seen Overdone Delta's profit outlook could further weigh on shares. Core earnings are expected to drop 5% in 2025 in part thanks to higher income tax, said Takeshima, who earlier this month nearly halved his price target on the stock. The Thai government will likely raise the company's average income tax rate to 15% from about 3% to 5% historically, he said. In addition, Thailand's bourse in November set restrictions on Delta's stock trading in an effort to limit excessive speculation. It also proposed a cap on the weighting of single stocks on some of its main indexes after Delta dominated several gauges during its share surge. Delta currently makes up about 6% of the benchmark SET Index, down from around 12% in November, Bloomberg-compiled data shows. Delta's investor relations department didn't respond to an email seeking for comment. Still, Delta's stock has dropped to an attractive valuation amid optimism that greater AI server adoption could boost demand for the firm's electronics products, according to Chananthorn Pichayapanupat, an analyst at KGI Securities (Thailand) Pcl. The stock is now trading at about 45 times forward earnings, below its five-year average of 55, according to data compiled by Bloomberg. Analysts' average 12-month price target is 9.5% higher than Thursday's closing price. Business Schools Are Back Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World Israel Aims to Be the World's Arms Dealer The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? ©2025 Bloomberg L.P. Sign in to access your portfolio
