Delta Electronics reported a remarkable doubling of its profits in the first quarter, earning NT$7.91 per share. The company announced a significant investment of NT$14.1 billion to expand its production capacity.
Today, Delta released its financial report for the first quarter, revealing revenues of NT$159.35 billion. This figure represents a 1.39% decrease from the previous quarter but an impressive 34% increase compared to the same period last year, marking the second-highest revenue in the company’s history. The consolidated net profit attributable to shareholders reached NT$20.55 billion, reflecting an 18.6% growth from the previous quarter and a doubling compared to last year. This translates to a quarterly earnings per share of NT$7.91, achieving a record high for quarterly profits.
To support future business development, Delta’s board of directors approved several major expansion investment projects today. These include plans to reconstruct its Taoyuan Plant with an estimated project cost of NT$1.8 billion. Additionally, a new facility in Guanyin will be constructed with an estimated cost of NT$10.3 billion. Delta will also indirectly increase capital in its Indian subsidiary, Delta Electronics India, through its subsidiary DET, amounting to US$66 million (approximately NT$2.08 billion) to facilitate the funding needs for the subsidiary’s factory. In total, these three investment plans amount to approximately NT$141.8 billion.
Last year, Delta announced an investment of approximately NT$3.733 billion to acquire 43.12% of the shares in Crystal Communication, making it a wholly-owned subsidiary. Delta has now agreed with Crystal Communication to conduct a simple merger, with Delta remaining as the surviving company.
Delta’s Chairman, Zheng Ping, mentioned during a conference in late February that major clients, including large CSPs (Cloud Service Providers) in the United States, have already finalized their capital expenditure plans for this year. He expressed optimism about continuous growth in Delta’s operations without significant issues. Zheng noted that the demand for AI has accelerated growth, leading Delta to rapidly utilize previously planned production capacity, prompting the company to expedite the planning of new capacities for the next two to three years. Delta’s capital expenditure for 2025 is expected to reach NT$46.1 billion, with this year’s spending projected to increase, primarily focusing on AI and data center-related areas. A conference scheduled for the 30th will provide further insights into the AI industry’s current status and operational outlook.
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