Delta Electronics (Thailand) (DELTA) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw strong recovery with revenue up 11.2% YoY in USD, gross profit up 30.9%, and net profit up 33%, reaching record highs driven by AI, technology advances, and robust economic fundamentals.

• Revenue for the six-month period ended 30 June 2024 was THB 81,318 million, up from THB 68,916 million YoY.

• Net profit for the six-month period rose to THB 10,873 million from THB 8,282 million YoY.

• Growth was supported by expansion in the U.S. and other key markets, with optimism for H2 2024, especially in E-Mobility, Data Center, and Telecom Power & ICT Infrastructure.

• The auditor issued an unqualified review conclusion on the interim financial statements.

Financial highlights

• Q2 2024 revenue was THB 41.8 billion, up 16.6% YoY and 10% QoQ; H1 2024 revenue reached THB 79.8 billion, up 17.1% YoY.

• Q2 gross profit was THB 11.2 billion (26.9% margin), up 34.1% YoY and 40.8% QoQ; H1 gross profit was THB 19.19 billion (24.1% margin), up 27.3% YoY.

• Q2 net profit hit a record THB 6.6 billion (15.7% margin), up 40% YoY; H1 net profit was THB 10.9 billion (13.6% margin), up 31.3% YoY.

• Basic EPS for the six-month period was THB 0.87, up from THB 0.66 YoY.

• In USD, Q2 sales were $1,128 million (+6.7% QoQ, +9.6% YoY); Q2 net profit was $178 million (+48% QoQ, +33% YoY).

Outlook and guidance

• H2 2024 expected to see continued growth, especially in AI, Data Center, and EV segments, though visibility is limited due to global uncertainties.

• Double-digit revenue growth for 2024 remains the target, supported by new product launches and ongoing demand in key segments.

• The company continues to invest in capacity expansion and R&D to support growth.

• Thai economy forecast to grow 2.5%-3% in 2024, supported by export recovery, tourism, and private investment.

• Medium- to long-term outlook for AI, Data Center, and EV remains positive, with AI and data intelligence seen as long-term growth drivers.