Delta Electronics (Thailand)'s Valuation Likely to Remain Under Pressure
Dow Jones
Aug 03
0729 GMT - Delta Electronics (Thailand)'s valuation is likely to remain under pressure from lower gross and operating margin profiles amid the broader selloff in artificial intelligence infrastructure stocks, UOB Kay Hian analysts say in a note. The electronics products manufacturer's 2Q net profit dropped 33% on quarter, as raw material shortages and higher royalties hit its margins by more than expected. Although the company's 2H earnings should improve, higher raw material costs will likely weigh on its gross margin, the analysts say. UOB KH lowers its stock target price to 300.00 baht from 320.00 baht, while maintaining a hold rating. Shares are down 1.1% at 275.00 baht.
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