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 business momentum and a modest rebound in EV sales.

• Year-over-year sales revenue grew 8% in USD terms, with gross profit up 8.6% and net profit up 8.7% 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 was THB 43.23 billion, up 6.8% year-over-year; nine-month revenue reached THB 124.6 billion, up from THB 110.1 billion.

• Q3 gross profit was THB 11.93 billion (27.6% margin), up 30.4% year-over-year; nine-month gross profit was THB 31.12 billion (25.3% margin), up 28.5%.

• Q3 net profit was THB 5.91 billion (13.7% margin), up 8.9% year-over-year; nine-month net profit was THB 16.8 billion (13.6% margin), up from THB 13.7 billion.

• 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 expected to remain healthy, led by strong data center demand; EV segment to remain soft with moderate growth.

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

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

• Management targets double-digit annual growth in the medium term, driven by power-related products and AI demand.

• Cautiously optimistic despite global uncertainties, focusing on sustainable solutions and diversified channels.