Delta Head: Profit Expected to Improve Quarter by Quarter

According to Delta Electronics Chairman Yancey Hai (2308-TW), the impact of China’s lockdowns is lower than the company expected.

Speaking at a shareholders’ meeting on Tuesday (June 14), the chairman said that the situation is gradually improving, and a good performance is expected in the third quarter.

He added that profit should improve quarter by quarter, and double-digit revenue growth this year is not a problem.

Hai explained that Delta management has been actively responding to the impact of the lockdowns to minimize the impact as the situation is gradually eased. 

He added that June will continue the momentum of May’s recovery, and factories are now more efficient because of the pandemic.

Regarding cost pressure, Hai pointed out that the current raw material inflation has slowed down a bit. Cost shifting is also gradually improving, expecting profitability to increase quarterly. 

As for the recent inflationary pressure, the consumer side of the non-essential consumer goods force is bound to decline, but Delta’s products are mainly business-oriented, so the impact is still good.

Delta continues to be bullish on developing electric vehicles, energy storage and data centers. According to Hai, the electric vehicle business can maintain a growth of 40-50% this year.

Delta is currently holding orders from customers in Europe, the U.S. and Japan, and demand from automakers is still strong.

Energy storage is also one of Delta’s active business development, including charging piles and microgrids are the key areas.

As for power supply products, Hai pointed out that consumer products, such as laptops, are gradually returning to normal levels. Still, data center applications remain strong, and technology giants continue to move toward cloud-based development, driving data center demand.

In the automation business, Hai said, after the gradual unsealing of China, the economy has begun to recover, which is expected to drive the Chinese market up.

The European and U.S. markets have gradually returned to normal, and Hai is also optimistic about the growth of demand for building automation in Europe and the United States.

Delta shareholders’ meeting approved the distribution of last year’s earnings, expected to result in a cash dividend of NT$5.50 per share, and the election of additional directors and independent directors.

The new directors are Delta chief brand officer Guo Shan-shan, and independent director Audrey Tseng.