Company Reports

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles while generating revenue across geographically diverse global markets.

Delta Electronics' second-quarter revenue grew 48% year on year, while operating profit surged 64%.

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles while generating revenue across geographically diverse global markets.

Large cloud service providers like Alphabet are increasingly tapping debt and equity markets to fund artificial intelligence data center expansion, as heavy infrastructure spending is weighing on free cash flow.

Delta Electronics' first-quarter revenue grew 34% year on year, with operating profit surging 102%.

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles while generating revenue across geographically diverse global markets.

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles, or EVs, while generating revenue across geographically diverse global markets.

Delta Electronics' fourth-quarter revenue increased by 42% year on year, with operating profit surging 147%.

In the third quarter, Delta Electronics delivered a 34% year-on-year revenue increase and a 51% surge in operating profit, both reaching record highs.

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles, or EVs, while generating revenue across geographically diverse global markets.

Renowned for its expertise in power electronics, Delta Electronics is the world’s largest manufacturer of power supplies and a leading provider of thermal modules and power inductors. Its innovative products and solutions support a broad spectrum of downstream applications from data centers to electric vehicles, or EVs, while generating revenue across geographically diverse global markets.

We transfer coverage of Delta Electronics. In the second quarter, the company delivered a 20% year-on-year revenue increase and a 42% surge in operating profit, both reaching record highs.

Delta Electronics' revenue for the first quarter of 2025 was up 4% from the previous quarter to TWD 119 billion. Operating margin surged 243 basis points sequentially to 11.8% as data center clients have been front-loading shipments in anticipation of US tariffs.

Delta Electronics' competitiveness and reputation are built on its expertise in power management. It enables the firm to offer energy-efficient solutions that conform to standards of different industries and regions. The stringent requirements of telecom, server and data center applications are perfect showcases of Delta’s moat. Together they contribute about 30% of revenue. We think growth of the data center business will be driven by accelerating data generation and upselling of cooling, power management, and monitoring systems to existing enterprise customers. For telecom products, 5G rollouts should last years, as 3 times more base stations are needed compared with 4G. We believe Delta’s reputation should reassure data center customers of optimized energy usage; and telecom clients of reliability in adverse conditions.

Delta Electronics' fourth quarter of 2024 revenue was up 2% from the prior quarter to TWD 114 billion. Gross and operating margins fell more than 400 basis points sequentially to 30.8% and 9.4%, respectively, due to lower utilization in electric vehicle factories and goodwill impairments.

Narrow-moat Delta Electronics is overvalued even though we increased our fair value estimate to TWD 352 from TWD 331. We foresee electric vehicle-related growth will be more volatile and view the market as overoptimistic on the profitability of cooling, ventilation, and power supply systems used on artificial intelligence servers. Delta is trading 5%-10% above its five-year historical average of 20 times next-year P/E, which is not attractive given the risks in AI and EVs.

Delta Electronics' competitiveness and reputation are built on its expertise in power management. It enables the firm to offer energy-efficient solutions that conform to standards of different industries and regions. The stringent requirements of telecom, server and data center applications are perfect showcases of Delta’s moat. Together they contribute about 30% of revenue. We think growth of the data center business will be driven by accelerating data generation and upselling of cooling, power management, and monitoring systems to existing enterprise customers. For telecom products, 5G rollouts should last years, as 3 times more base stations are needed compared with 4G. We believe Delta’s reputation should reassure data center customers of optimized energy usage; and telecom clients of reliability in adverse conditions.

We maintain our fair value estimate of TWD 33 for narrow-moat Delta Electronics after minor changes to our model. Shares appear overvalued as the bullish outlook in artificial intelligence servers is not enough to offset sluggish automation and electric vehicle outlook. At 23 times 2025 P/E, Delta is trading above its five-year historical average of 20 times. The stock is pricing in excessive gross margin expansion, given this quarter’s figure is boosted by accounting practices and a lack of EV-related growth, which is dilutive.

We maintain our fair value estimate on narrow-moat Delta Electronics at TWD 331 per share after minor changes to our model. There is no change in our long-term view. Shares look fairly valued, as a rosy outlook for artificial intelligence servers is offset by a disappointing recovery in the automation business. We view more clarity as to the end of inventory clearance among automakers and China’s macroeconomic recovery as being positives for the stock.

We retain our fair value estimates on Taiwanese technology companies in our coverage following a powerful earthquake and multiple strong aftershocks near the eastern city of Hualien on April 3, namely: Advantech at TWD 337; Delta Electronics at TWD 331; GlobalWafers at TWD 710; Largan at TWD 3,000; MediaTek at TWD 1,400; Sino-American Silicon at TWD 281; Taiwan Semiconductor Manufacturing Co at TWD 950 (USD 151 per ADR); United Microelectronics Corp at TWD 70; and Win Semiconductors at TWD 245 per share.