Equity Analysis /

Thailand: Electronics - Inventory corrections in 1H23!

  • DELTA led 4Q22 profit growth

  • 1Q23 demand checks

  • Cloudy 1Q23 outlook

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
13 March 2023

ELTRON stocks are vulnerable to risks linked to the global economic slowdown. Inventory corrections started in 4Q22 and have further to run during 1H23. The 1H23 outlook for the sector is soft.

DELTA led 4Q22 profit growth

The four ELTRON stocks under coverage posted aggregate net earnings of Bt6.3bn for 4Q22, up by 89% YoY and 8% QoQ. Excluding extra items, the aggregate core profit would be Bt6.1bn, up by 74% YoY and 4% QoQ. DELTA led growth with 4Q22 core earnings of Bt4.5bn, up by 134% YoY and 16% QoQ, driven by demand for cloud storage- and data center-related products and orders from EV makers. The runner-up was SVI with a 4Q22 profit of Bt575m, up by 4% YoY and 16% QoQ.