DBSVS Warns DELTA “Fully Valued” after a Fast-Pace Rally Near ฿300!

The share price of Delta Electronics (Thailand) Public Company Limited (DELTA) rose ฿36.00/share or 14.01% to ฿293.00/share with a trading value of 1,562 million baht as of 12:00 local time in Thailand on Tuesday.

 

The share price broke the 200.00 baht resistance level on November 26, 2020, and continued to rise at a faster pace since then.

 

DBS Vickers Securities rated DELTA as “Fully Valued” with a target price at ฿200.00/share as the valuation was quite expensive since late November after the announcement of DELTA being listed into MSCI Global Standard. The share price also rose more than 330% this year, while DELTA currently traded at a P/E of 36x or +3SD of its 5-year historical trading.

The baht appreciation will limit DELTA’s 2021 GPM, which would offset its higher sales in electronic parts for EV. In the longer term, its GPM from operating revenue would pickup thanks to the DELTA Smart Manufacturing project.