Delta Electronics Inc

2308: XTAI (TWN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	TWD 664.00	Qzsrln	Cxmjwsk

Delta Electronics’ Shares No Longer Rich After Q3 Miss and Near-Term Woes; Retaining TWD 252 FVE

Phelix Lee

Oct 29, 2021

We maintain our fair value estimate for Delta Electronics at TWD 252, corresponding to 21 times 2022 P/E. Although we trim 2021 margin assumptions due to a longer-than-expected wave of raw material cost increases, 2022-25 forecasts remain unchanged for now. Shares look fairly valued after rising costs and worries of China’s electricity curtailments pressured the share price. Upside surprise for the stock lies in the company’s electric vehicle business, which helps sales of onboard chargers, charging stations, and passive component products.

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