Power supply maker and energy management solution provider Delta Electronics is optimistic about its business growth arising from increasing demand for 5G infrastructure, data centers, electric vehicles (EVs), automotive electronics and green energy, according to company chairman Yancey Hai.
Deployment of 5G infrastructure is progressing in many countries and establishment of data centers is accelerating due to strong demand supporting remote working and learning in the wake of the coronavirus pandemic, Hai said, adding that Delta has developed energy-saving solutions for data centers.
Tesla's impressive sales have fueled momentum for EV development, with traditional automakers launching EV models at competitive prices, Hai noted. EV penetration in the car market is estimated to rise from 2% currently to 12-13% in 2030, Hai indicated, adding Delta has obtained many orders for EV components.
Global demand for green energy keeps growing but it should be accompanied with energy storage systems, Hai said, adding Delta has been developing energy storage solutions for years.
Currently, Delta has 65% and 20% of its production capacity in China and Thailand respectively, company CEO Cheng Ping said. Delta is constructing a factory in India, and completion was originally scheduled for March 2020 but has been delayed until early 2021 due to the pandemic, Cheng indicated.
Delta Electronics: Financial results, 3Q20 (NT$b) | |||||
3Q20 | Q/Q | Y/Y | Jan-Sep 20 | Y/Y | |
Consolidated revenues | 77.680 | 9.88% | 7.20% | 204.052 | 2.06% |
Gross margin | 31.94% | (0.93pp) | 3.74pp | 30.77% | 3.52pp |
Operating profit | 10.448 | 12.76% | 89.25% | 21.692 | 54.64% |
Net profit | 8.390 | 10.43% | 63.55% | 18.054 | 0.13% |
Net EPS (NT$) | 3.23 | 6.95 | |||
Source: Company, compiled by Digitimes, October 2020
A Delta-developed EV power charging station
Photo: Digitimes file photo