Delta Electronics (Thailand) Plc has become the largest listed company on the Stock Exchange of Thailand on optimism about demand for its server, cloud-storage and EV-charging products.
Shares of the local unit of Taiwan-based Delta Electronics Inc surged 12% to a record 930 baht on Tuesday, extending a three-day rally that has produced a gain of 32%. The rise has increased the company’s market capitalisation to 1.16 trillion baht, surpassing Airports of Thailand Plc, currently the world’s most-valuable airport operator, and the state oil giant PTT Plc.
Demand for electronic products probably helped spur the 200% jump in Delta’s fourth-quarter earnings, according to KGI Securities (Thailand).
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 Tuesday’s close. The stock has only one buy recommendation, against seven holds and six sell ratings from brokerages.
Delta’s "valuations are very high with very limited free float", said Passakorn Linmaneechote, head of research at Kasikorn Securities.
The company’s free float, or total outstanding shares held by minority shareholders, is only about 22.4%, according to SET data.
Delta shares closed on Wednesday at 912 baht, down 18 baht (1.9%) in heavy turnover worth 9.15 billion baht.
