Delta Electronics Thailand becomes most valuable company on country's Stock Exchange

Delta Electronics Thailand, a Thai subsidiary of Taiwanese power supply and auto parts manufacturer Delta Electronics, has turned into the most valuable firm on Stock Exchange of Thailand. The company is capitalising on the boom in electric vehicles (EVs) globally. Delta Electronics Thailand is now worth more than its Taiwanese corporate parent. This has created a fear that it has become overvalued. Yingyong Chiaravutthi, Chief Investment Officer (CIO) at Eastspring Thailand, told Nikkie Asia, “The market cap is higher than the parent company. It doesn’t make sense, so we’re really cautious of this stock. Delta Thailand’s fundamentals versus its peers shouldn’t warrant the difference in P/E ratio.” The shares of Delta Thailand rose 163 per cent over the past year, as per the media reports. It turned into the nation’s largest company by market capitalisation in January. It surpassed Airports of Thailand, which is a pillar of the tourism industry and the most valuable airport operator in the world at present. This development comes as Delta Thailand plans to double its EV business in a year when EV makers Great Wall Motor, Tesla, and BYD are creating inroads in Thailand. The company had entered the EV market with power convertors prior to the pandemic. The firm has a long-term aim of providing the entire motor drive, which controls the electric car’s speed and torque. Reportedly, one of the explanations for the valuation of Delta Thailand is the lack of EV-related stocks on the Thai market. Domestic investors seeking exposure to the EV sector have few alternatives among Bangkok-listed shares. Hana Microelectronics commenced the supply of EV semiconductors only last year. EVs are currently a small part of Delta’s business, which saw growth mainly from demand for consumer electronics, data centres, home appliances, and telecom equipment in the past two years. The firm went through hurdles in scaling up its EV business due to the pandemic, like shortage of semiconductors and other components. But despite the challenges, Delta Thailand registered a 129 per cent growth in net profit for 2022. The corporation was one of the winners from the pandemic supply chain backlog, with its power electronics segment providing 77 per cent of the revenue last year. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.