Delta Electronics Inc

Bualuang Securities stated in an analysis dated September 15, 2026, that the issuance of exchangeable bonds referencing shares of Delta Electronics (Thailand) or DELTA by a company in the Delta Electronics group is likely to create share supply pressure, or overhang, on the stock price in the short term, rather than affecting fundamental earnings, since no new shares are being issued and therefore there is no dilution effect. Delta Electronics Taiwan is preparing to issue exchangeable bonds with a total value of 1.5 billion US dollars through Delta Electronics International Singapore, a wholly owned subsidiary that holds a 42.85% stake in DELTA. The bonds are zero-coupon exchangeable bonds, divided into two tranches: a 500 million US dollar tranche maturing in September 2027 and a 1 billion US dollar tranche maturing in September 2031. Bloomberg indicated yields of 2-4% for the 2027 tranche and 0.5-1.5% for the 2031 tranche, while TradingView, citing Reuters data, indicated negative yields in the ranges of 2-4% and 0.5-1.5% respectively, so final yield terms still await confirmation. Regarding put options, the 2027 tranche has no put option, while the 2031 tranche provides put rights in March 2028 and September 2029. Bualuang estimates that using a DELTA share price of 252 baht as the reference price and assuming a 10% discount to the share sale price, the sale price would be approximately 227 baht per share. Including the exchange premium, the exchange price of the 2027 tranche is expected to be approximately 261-272 baht per share and the 2031 tranche approximately 295-318 baht per share. The number of shares potentially available for exchange is estimated at approximately 160-170 million shares, or 1.3-1.4% of total shares, before including the greenshoe over-allotment option, while the previous transaction involved approximately 0.4% of shares. Bualuang views the overhang from this transaction as clearer than the deal in January 2025 because it is larger, the 2027 tranche has a short maturity, and the premium to the market price is lower, resulting in the share price being likely to fluctuate and be capped in the short term. However, the fact that Delta Electronics International Singapore, which holds a 42.85% stake in DELTA, is the issuer of these bonds, differs from the previous transaction conducted through DIH Netherlands, which held a 13.77% stake, and this may make the market more cautious about the possibility that the Delta group will use its holdings to create value through similar transactions in the future. Although the transaction creates short-term pressure, Bualuang maintains a positive view on DELTA's AI and data center business outlook and keeps its buy recommendation, but lowers the target price to 330 baht to reflect the overhang and reduces the valuation premium to a standard level.

Delta Electronics (Thailand) Public Company Limited, or DELTA, informed the Stock Exchange of Thailand that Delta Electronics Int'l (Singapore) Pte. Ltd., a major shareholder and subsidiary of Delta Electronics Inc., plans to issue and offer overseas zero-coupon convertible bonds with a total value of $1.5 billion on or about September 21, 2026, to increase working capital and support business expansion. The bonds are divided into two tranches. The Tranche A Bonds, worth $500 million, have a one-year term maturing on September 21, 2027, with an initial conversion price of 266.80 baht per share, 15% above the reference price. The Tranche B Bonds, worth $1 billion, have a five-year term maturing on September 21, 2031, with an initial conversion price of 301.60 baht per share, 30% above the reference price. Holders of the Tranche B Bonds also have the right to require redemption of all or part of the bonds at 99.25% and 98.51% of the principal amount upon reaching 1.5 years and 3 years from the bond issuance date, respectively. If the conversion rights on all the bonds are exercised at the initial price, approximately 172.09 million DELTA shares held by Delta Electronics Int'l (Singapore) would be used, representing approximately 1.38% of all issued shares as of the bond issuance date. This bond issuance will not affect DELTA's board structure, management, business administration, policies, or operations.

Asia Plus Securities issued an analysis of Delta Electronics (Thailand) Public Company Limited, or DELTA, maintaining a Buy recommendation with a target price of 342 baht, and projecting normalised profit for 2026-2027 at 35-49 billion baht, equivalent to average annual growth of 42%. The research team said profit has already passed its low point for the year in Q2/2026, and that second-half 2026 profit will be better than the first half, while normalised profit in 2026-2027 is expected to grow the most in the sector even though the share price remains a laggard. On the sales side, DELTA's parent company in Taiwan reported August 2026 sales of 64 billion Taiwan dollars, down 4% month-on-month but still up 35% year-on-year and above the Q2/2026 average of 61 billion Taiwan dollars. That put sales for the first two months of the quarter, July and August 2026, at 130 billion Taiwan dollars, up 41% year-on-year. Although parent company sales declined, DELTA's own sales in the same period do not necessarily have to fall in step, because parent sales cover the entire group including subsidiaries worldwide. Still, DELTA Thailand's sales tend to move in the same direction as the parent's, with a correlation of about 96%, so DELTA's July-August 2026 sales are expected to grow better than in Q2/2026, just as the parent's did. In addition, the raw material shortage seen in Q2/2026 began to ease from July 2026, which is expected to keep production and deliveries recovering. Overall, the research team expects DELTA's Q3/2026 sales to grow both quarter-on-quarter and year-on-year, and anticipates better quarter-on-quarter margins, with royalty payments as a share of sales falling quarter-on-quarter because products made with DELTA's own technology will account for a larger share in the second half of 2026. That should help push Q3/2026 profit to the year's high, helped by a low base in Q3/2025.

Bualuang Securities said OpenAI's launch of GPT-6 Astra helps confirm the assumption of power demand for AI, and it is maintaining its estimates for new rack-level power installations at roughly 15GW in 2026, 20GW in 2027 and 25GW in 2028. This follows NVIDIA's indication that it will add around 400,000 more GPUs, which, compared with a GB200 NVL72 system, equals about 5,600 racks, or a power load of roughly 0.7GW, representing only 3-4% of the 20GW assumption for 2027, so there is still no need to revise estimates upward. The key point from Astra is the increase in the number of tasks AI can actually be applied to. Although Astra's API price is about 2.5 times higher than GPT-5.6 Sol, the cost per completed task fell in some tests, with DeepSWE about 57% lower and Terminal-Bench Science about 27% lower. As for Delta Taiwan's August sales, they came in at NT$64.6 billion, up 35% year on year but down 4% month on month, while the Power Electronics business, which is most relevant to Thailand's DELTA, fell 9% month on month to NT$34.9 billion even though it was still up 40% year on year, reflecting that the supply shortage pressuring the second quarter of 2026 may not yet be fully resolved. The research team is maintaining its core profit estimates for DELTA at 38.5 billion baht in 2026, up 56.6% year on year, 56.9 billion baht in 2027, up 47.7%, and 68.9 billion baht in 2028, up 21.0%, while keeping its Buy recommendation and a 2027 target price of 440 baht.

Bualuang Securities maintains its Buy rating on Delta Electronics (Thailand) Public Company Limited, or DELTA, with a 2027 target price of 440 baht, viewing OpenAI's launch of GPT-6 Astra as confirmation of the research house's assumptions about power demand for AI. The research team keeps its forecast for new rack-level power installations at roughly 15GW in 2026, 20GW in 2027 and 25GW in 2028, after NVIDIA said it would add about 400,000 more GPUs, which against a GB200 NVL72 system equates to roughly 5,600 racks, or about 0.7GW of load, just 3 to 4 percent of the 20GW assumption for 2027, so no upward revision to estimates is needed yet. The key takeaway from Astra is the greater number of tasks AI can actually perform; although Astra's API price is about 2.5 times higher than GPT-5.6 Sol, the cost per completed task fell in some tests, with DeepSWE down about 57 percent and Terminal-Bench Science down about 27 percent. Delta Taiwan's August sales came in at NT$64.6 billion, up 35 percent year on year but down 4 percent month on month, while the Power Electronics business, which is most relevant to DELTA Thailand, fell 9 percent month on month to NT$34.9 billion even as it grew 40 percent year on year, suggesting the supply shortage that pressured the second quarter of 2026 may not have fully eased. The research team keeps its core profit forecasts for DELTA at 38.5 billion baht in 2026, up 56.6 percent year on year, 56.9 billion baht in 2027, up 47.7 percent, and 68.9 billion baht in 2028, up 21.0 percent, tracking growth in AI and data centers.

Yuanta Securities assesses that DELTA Thailand's revenue will recover in the third quarter of 2026, growing 12% quarter-on-quarter, driven by the shift of orders from the second quarter to production in the third quarter. Revenue is expected to continue growing by another 10% in the fourth quarter, with the expansion of AI Data Center product capacity as the main driver. However, the main risk remains raw material constraints, which, although improving, are still tight for some items, potentially causing growth to fall short of potential. Meanwhile, DELTA Taiwan analysts expect revenue growth of 21% and 17% in the third and fourth quarters, respectively, significantly higher than our assumptions. Regarding gross margin, the target remains at least 30% for 2026, compared to 29.2% in the first half, with GPM expected to recover to 30.5% in the third quarter and 32.5% in the fourth quarter. SG&A remains a pressure factor due to increased R&D expenses and licensing fees. We have cut our normal profit estimates for 2026-2027 by 10% and 8%, respectively, expecting 2026 profit of 36 billion baht (+57% YoY) and 2027 profit of 51 billion baht (+40% YoY). We have adjusted the end-2027 fair price to 293.00 baht per share, using a PER of 72.2 times, and maintain a TRADING recommendation.