Earnings Report /
Thailand

Delta Electronics Thailand PCL: 3Q22 earnings above consensus estimate

  • 3Q22 earnings were 14% above our projection

  • DELTA posted a 3Q22 net profit of Bt4.1bn

  • 3Q22 revenue totaled Bt31.3bn

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
26 October 2022

DELTA’s 9M22 core profit accounts for 73% of Bloomberg’s consensus forecast of Bt13.75bn (against our core profit assumption of Bt14.1bn). The firm’s 2H core profit is typically higher than in 1H. Therefore, we expect to see the flow of consensus earnings upgrade of about 3-5% in the foreseeable future. DELTA’s stock has risen and almost hit our target price of Bt700 (peaked at Bt708 vs. our previous TP of Bt720). Therefore, our recommendation shifted from TRADING BUY to HOLD.

3Q22 earnings were 14% above our projection

DELTA posted a 3Q22 net profit of Bt4.1bn, up 245% YoY but down 4% QoQ. Net profit was 14% above the consensus’s estimate but in line with our projection. Stripping out a FX gain (Bt214m), core earnings would be Bt3.9bn, up by 197% YoY but flattish QoQ. The core number was 13% below our model (but in line with the consensus’s estimate), due to a slimmer GM than we had assumed.