Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Delta Electronics (Thailand) / Event-Driven

<ul>
<li>This guide is part of a series of M&amp;A guides our Quiddity* team are publishing to aid investors in understanding the rules, parameters, possibilities, and processes when companies conduct M&amp;A.</li>
<li>The initial guide, <a href="https://skr.ma/rTzri" target="_blank" rel="noopener">Quiddity Thailand M&amp;A Guide 2019</a>, was published in May 2019. Since that time, there have been various new developments. </li>
<li>This is an update. These insights are designed to be used as a reference. They are not actionable. For a list of Quiddity M&amp;A Guides, click <a href="https://www.smartkarma.com/search?q=%22quiddity%20M%26A%20Guide%22" target="_blank" rel="noopener">here</a>.</li>
</ul>


This guide is part of a series of M&amp;A guides our Quiddity* team are publishing to aid investors in understanding the rules, parameters, possibilities, and processes when companies conduct M&amp;A.
The initial guide, Quiddity Thailand M&amp;A Guide 2019, was published in May 2019. Since that time, there have been various new developments. 
This is an update. These insights are designed to be used as a reference. They are not actionable. For a list of Quiddity M&amp;A Guides, click here.


Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

Delta Electronics (Thailand) / Equity Bottom-Up

<ul><li>FY25 core profit grew 27% YoY to Bt23bn.</li><li>However, DELTA’s P/E has rebounded to 100x, again exceeding the 85x threshold—levels it has historically failed to sustain for more than two months.</li><li>With 4Q25 results in line with market expectations, we believe the share price should remain elevated in the near term, as investors may be willing to re-rate DELTA at a premium again.</li></ul>

FY25 core profit grew 27% YoY to Bt23bn.However, DELTA’s P/E has rebounded to 100x, again exceeding the 85x threshold—levels it has historically failed to sustain for more than two months.With 4Q25 results in line with market expectations, we believe the share price should remain elevated in the near term, as investors may be willing to re-rate DELTA at a premium again.

Delta Electronics (Thailand) Plc. (DELTA): In-Line Earnings, But P/E Overheated Again

<ul><li>We see a risk of P/E de-rating for DELTA from a premium back to a discount, following the parent company’s biglot sale and rising near-term earnings challenges from new risk factors.</li><li>4Q25 profit is expected at Bt6.5bn (+215% YoY, +1% QoQ) on a low base, below the market estimate of Bt6.7bn.</li><li>We maintain a Neutral rating and lower FV to Bt165 (from Bt195), based on 76x P/E (+1 SD) versus the previous 85x (+1.5 SD), reflecting expected P/E de-rating in 1H26.</li></ul>

We see a risk of P/E de-rating for DELTA from a premium back to a discount, following the parent company’s biglot sale and rising near-term earnings challenges from new risk factors.4Q25 profit is expected at Bt6.5bn (+215% YoY, +1% QoQ) on a low base, below the market estimate of Bt6.7bn.We maintain a Neutral rating and lower FV to Bt165 (from Bt195), based on 76x P/E (+1 SD) versus the previous 85x (+1.5 SD), reflecting expected P/E de-rating in 1H26.

DELTA ELECTRONICS (THAILAND) Plc. (DELTA): Valuation De-Rating Ahead

<ul><li>The parent company of DELTA, Delta International Holding Limited B.V., announced a big lot sale of 51.2mn DELTA shares (representing 0.41% of total shares) at a price of Bt171, reflecting an 8.1% discount to the latest market price.</li><li>In both cases, the parent company’s big lot sales negatively impacted DELTA’s share price, leading to an immediate de-rating from a premium (+1SD) to a discount (–1 to –1.5SD) and a prolonged recovery period.</li><li>DELTA’s share price outlook will depend on the 4Q25 earnings release in mid-February.</li></ul>

The parent company of DELTA, Delta International Holding Limited B.V., announced a big lot sale of 51.2mn DELTA shares (representing 0.41% of total shares) at a price of Bt171, reflecting an 8.1% discount to the latest market price.In both cases, the parent company’s big lot sales negatively impacted DELTA’s share price, leading to an immediate de-rating from a premium (+1SD) to a discount (–1 to –1.5SD) and a prolonged recovery period.DELTA’s share price outlook will depend on the 4Q25 earnings release in mid-February.

Delta Electronics (Thailand) Plc. (DELTA): Lack Of Near-Term Catalysts...

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>Valuation gap remains extreme and unsupported by fundamentals. <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> trades at 28.5x 2025E PER, while <a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand (DELTA TB)</a>  trades at 66.8x.</li>
<li>LONG <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> vs. SHORT <a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand (DELTA TB)</a>. Delta Taiwan delivering materially higher revenue and net income growth 2025E–2026E with a dramatically lower valuation.</li>
<li>Thailand SET50 Index capping introduces a market structure headwind for Delta Thailand into 2026E; Delta Taiwan expected to outperform Delta Thailand in the new year.</li>
</ul>


Valuation gap remains extreme and unsupported by fundamentals. Delta Electronics (2308 TT) trades at 28.5x 2025E PER, while Delta Electronics Thailand (DELTA TB)  trades at 66.8x.
LONG Delta Electronics (2308 TT) vs. SHORT Delta Electronics Thailand (DELTA TB). Delta Taiwan delivering materially higher revenue and net income growth 2025E–2026E with a dramatically lower valuation.
Thailand SET50 Index capping introduces a market structure headwind for Delta Thailand into 2026E; Delta Taiwan expected to outperform Delta Thailand in the new year.


Delta Taiwan Vs. Delta Thailand: Valuation Extreme Persists as Growth Leadership Shifts to Parent

Thailand

Delta Electronics (Thailand) Public Co. Ltd. manufactures and distributes power supplies, electronic equipment, and components such as DC fans, EMI filters, and solenoids. The company also provides solutions including EV chargers, industrial automation, data center infrastructure, and smart energy management. Headquartered in Samut Prakan, Thailand, the company was established in 1988.

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Delta Electronics (Thailand) (DELTA TB)

Quiddity M&A Guide 2026: Thailand

This guide is part of a series of M&A guides our Quiddity* team are publishing to aid investors in understanding the rules, parameters,...

David Blennerhassett

Delta Electronics (Thailand) Plc. (DELTA): In-Line Earnings, But P/E Overheated Again

With 4Q25 results in line with market expectations, we believe the share price should remain elevated in the near term, as investors may be willing...

Krungthai XSpring

DELTA ELECTRONICS (THAILAND) Plc. (DELTA): Valuation De-Rating Ahead

We see a risk of P/E de-rating for DELTA from a premium back to a discount, following the parent company’s biglot sale and rising near-term...

Krungthai XSpring

Delta Electronics (Thailand) Plc. (DELTA): Lack Of Near-Term Catalysts...

The parent company of DELTA, Delta International Holding Limited B.V., announced a big lot sale of 51.2mn DELTA shares (representing 0.41% of total...

Krungthai XSpring

Delta Taiwan Vs. Delta Thailand: Valuation Extreme Persists as Growth Leadership Shifts to Parent

Valuation gap between Delta Electronics Taiwan and Delta Electronics Thailand remains extreme, with Taiwan offering better growth prospects at a...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity M&A Guide 2026: Thailand

This guide is part of a series of M&A guides our Quiddity* team are publishing to aid investors in understanding the rules, parameters,...

David Blennerhassett

Delta Electronics (Thailand) Plc. (DELTA): In-Line Earnings, But P/E Overheated Again

With 4Q25 results in line with market expectations, we believe the share price should remain elevated in the near term, as investors may be willing...

Krungthai XSpring

DELTA ELECTRONICS (THAILAND) Plc. (DELTA): Valuation De-Rating Ahead

We see a risk of P/E de-rating for DELTA from a premium back to a discount, following the parent company’s biglot sale and rising near-term...

Krungthai XSpring

Delta Electronics (Thailand) Plc. (DELTA): Lack Of Near-Term Catalysts...

The parent company of DELTA, Delta International Holding Limited B.V., announced a big lot sale of 51.2mn DELTA shares (representing 0.41% of total...

Krungthai XSpring

Delta Taiwan Vs. Delta Thailand: Valuation Extreme Persists as Growth Leadership Shifts to Parent

​Valuation gap between Delta Electronics Taiwan and Delta Electronics Thailand remains extreme, with Taiwan offering better growth prospects at a...

Vincent Fernando, CFA

Valuation gap between Delta Electronics Taiwan and Delta Electronics Thailand remains extreme, with Taiwan offering better growth prospects at a...