Delta Electronics (Thailand) Pcl, a unit of Taiwan-based Delta Electronics Inc., overtook the world’s most-valuable airport operator and an oil giant to become Thailand’s largest listed company on optimism about demand for its server, cloud-storage and EV-charging products.
(Bloomberg) — Delta Electronics (Thailand) Pcl, a unit of Taiwan-based Delta Electronics Inc., overtook the world’s most-valuable airport operator and an oil giant to become Thailand’s largest listed company on optimism about demand for its server, cloud-storage and EV-charging products.
The maker of electronic parts surged 12% to a record 930 baht on Tuesday, extending a three-day rally to 32%. That increased its market value to 1.16 trillion baht ($33.8 billion), surpassing Airports of Thailand Pcl and PTT Pcl, two state-controlled companies.
Demand for electronic products probably helped spur Delta’s 200% jump in fourth-quarter earnings, according to KGI Securities (Thailand) Pcl. Even so, KGI and most other analysts are less convinced by the share price surge, with the consensus 12-month price estimate of about 551 baht suggesting a 41% drop from yesterday’s close. The stock has only one buy recommendation, seven holds and six sell ratings.
Delta’s “valuations are very high with very limited free float,” says Passakorn Linmaneechote, head of research at Kasikorn Securities Co.
The company’s so-called free float, or total outstanding shares held by minority shareholders, is only about 22.4%, according to Stock Exchange of Thailand data.
–With assistance from Ian Sayson.
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