Brokerages to cut profit projections
While product demand remains strong, analysts say supply chain management is a near-term challenge for Delta Electronics Thailand.
Analysts are preparing to lower their net profit forecast for Delta Electronics (Thailand) for 2026 and 2027 after the largest company on the Stock Exchange of Thailand (SET) reported lower quarterly earnings than expected as rising costs and a raw material shortage ate into its profit margin.Delta's second-quarter profit of 6.1 billion baht, down 33% from three months earlier, was 33% below market consensus, even though quarterly revenue reached a record 65 billion baht, said Suwat Sinsadok, managing director of Globlex Securities.
The decline was attributed to the raw material shortage, soaring raw material costs and higher tax and inventory provisions, said Mr Suwat.
Gross and net profit margins plunged despite higher revenue from royalty-based artificial intelligence (AI)-related products, as the benefits were offset by the raw material shortage, rising costs and the 1-billion-baht tax provision under the global minimum tax regulation.
