Delta Electronics said on Feb 23 that its EV business – on-board chargers and battery management systems, will get even better this year, after announcing improved financial results for last year. Chairman Yancey Hai said at the latest earnings call that "availability of materials and components has much recovered" but there is still "a little bit of a shortage of some MCU and MOSFET."
Hai added that with stably increasing order volume, he expects the EV business to turn profitable this year. He also indicated that Delta's products are "used in most of the new models by major US, European, and Japanese carmakers."
Delta Electronics announced its quarterly revenue dropped by 1% sequentially for the fourth quarter last year due to strong Taiwanese dollar. The latest quarterly revenue was NT$105.6 billion (US$3.46 billion at US:NT = 1:30.5), up by 26% on-year; operating margin for the quarter was 10.2%.
Notably, Delta Electronics Thailand recorded strong profit growth. The Thai subsidiary, responsible for the company's production in Southeast Asia, India, and Eastern Europe, has plans to set up production of EV products in Hungary, for which Hai said they have finalized the location.
60% of Delta's production capacity remains in China, 20% in Thailand, and the rest in Slovakia, Taiwan, and India. However, production in India is on the rise.
Annual financial results
According to Delta's latest annual financial results, revenue grew by 22% to NT$384.4 billion last year. infrastructure group reported more than 20% revenue and profit growth for the whole year of 2022. Power electronics group jumped - power and system products accounted for most of the growth, while loss for automotive products narrowed.
The company also expects the enormous demand for EV charging stations (of infrastructure group) in the US to uplift revenue. As competition intensifies, Hai stays confident for its product quality and Delta's expertise in manufacturing charging stations and organizing with local grid operators.
EV and data center will be the main drivers for growth, Hai said, the company is selling more and more charging stations, energy storage, and fans to car companies.
Automation group saw profits decline significantly by 37% for the year despite increases of revenue in building automation. Industrial automation business was affected largely by China's economic slowdown and the company said it would remain "conservative" for this year ahead, while building automation is expected to bolster revenue growth. However, industrial automation will continue growing for the long-term.
Overall, after-tax net profits for the year increased by 22% on-year to NT$32.67 billion. EPS was NT$12.58.
