Delta Electronics (Thailand) (DELTA) Q3 2024 earnings summary

Executive summary

• Achieved robust Q3 2024 results, surpassing consensus on earnings and revenue, driven by strong data center and automation business momentum, with a modest rebound in EV sales after a slow start to the year.

• Year-over-year sales revenue grew 8%, gross profit 8.6%, and net profit 8.7% in US dollar terms compared to Q3 2023.

• Revenue for the nine months ended 30 September 2024 rose to THB 124.6 billion, up from THB 110.1 billion year-over-year.

• Net profit for the nine-month period increased to THB 16.8 billion from THB 13.7 billion year-over-year.

• The interim financial statements received an unqualified review from the independent auditor.

Financial highlights

• Q3 2024 revenue increased 11.6% quarter-over-quarter and 54.3% year-over-year.

• Q3 2024 sales revenue reached THB 43.23 billion, up 6.8% YoY; 9M24 sales totaled THB 122.99 billion, up 13.2% YoY.

• Q3 2024 gross profit was THB 11.93 billion (27.6% margin), up 30.4% YoY; 9M24 gross profit was THB 31.12 billion (25.3% margin), up 28.5% YoY.

• Operating profit for the nine months was THB 17.1 billion, up from THB 14.2 billion year-over-year.

• Basic earnings per share for the nine months was THB 1.35, compared to THB 1.10 year-over-year.

Outlook and guidance

• Q4 2024 business expected to remain healthy, especially in data center segment; EV segment to stay soft.

• Full-year 2024 targeted for double-digit growth, though achieving this will be challenging.

• Promising outlook for datacenter business, mainly driven by AI demand from telecom and global operators investing in SEA.

• Management expects no significant impact from new financial reporting standards effective in 2025.

• Medium-term goal is double-digit year-over-year growth, driven by power-related products and AI demand.