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Delta Electronics Navigates Seasonal Downturn, Eyes Growth in AI and Automotive Sectors

Despite a temporary revenue dip, Delta remains optimistic with expected surges in AI server demand and a steady outlook in automotive performance
Taiwan
d 2308.TW Blue Chip 150 Tech 350 OM 60
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Delta Electronics, a leading power supply manufacturer, experienced a revenue decline in February, attributing the 16.3% monthly and 6.6% annual decreases to the off-season impact and fewer working days due to the Lunar New Year, recording a 24-month low at 27.205 billion yuan. However, the year-to-date figures paint a more stable picture, with a modest cumulative revenue increase of 1.8% to 59.720 billion yuan over the first two months.

The company’s diverse portfolio spans four primary business sectors—power supply and components, infrastructure, automation, and transportation—collectively contributing 52% to February’s revenue. Despite the revised projections in the automotive sector, reducing the expected annual growth from over 50% to 20-30%, the company maintains a positive profit forecast for the segment.

A significant development for Delta is the anticipated boost in the AI server domain, where executives predict a substantial increase in orders for power supplies and cooling systems, slated for delivery in the latter half of the year. This uptrend is expected to multiply the company’s AI-related revenue and contribute to steady overall growth for the year. With capital expenditures surpassing 30 billion yuan, marking an increase of over 8%, Delta is strategically investing in its core competencies and infrastructure to capitalize on forthcoming market opportunities.

Delta’s strategic adjustments and forward-looking investments underscore its resilience and adaptability in navigating market fluctuations. The company remains poised for growth, leveraging emerging opportunities in the AI and automotive sectors, which are expected to drive its revenue trajectory in the upcoming periods.

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