Shares of Delta Electronics Inc (
It is seen as a significant progression for Delta, the world's biggest maker of computer power-supply systems, in branching out to flat-screen TVs for faster growth.
"It is a meaningful step for Delta to supply TVs for well-known electronics vendors like Sharp," said Vincent Chen (
Prior to this, Delta has only had orders from small-channel vendors in northern America and in China -- ?such as Vivitake Co and Gateway Inc, according to Chen.
Chen made the remarks in reaction to a Chinese-language report that said Delta was set to produce 56-inch rear-projection flat-panel TVs for Sharp. The move is to aid the Japanese vendor to take a bigger share in the US, the biggest rear-projection TV market in the world.
The news gave a boost to Delta's stock price. Delta shares rose 1.96 percent to close at NT$52 on the Taiwan Stock Exchange.
Delta did not deny the report, and tried to play down the news.
"It is inappropriate to comment on our customers," said company spokesman Jess Chou (
"We believe rear-projection TV will be an area with great growth potential," Chou said.
Sales growth in the new business this year will almost double that of last year, but the audio-video division may contribute less than one-tenth of Delta's sales this year, up from 4 percent last year, Chen projected.
"The contribution perhaps looks small, but that it is good enough for Delta as it seeks a gradual extension into other growth areas," he said.
Based on Chen's projection, Delta should report sales of NT$67.9 billion for this year, up about 20 percent from an all-time record high of NT$56.4 billion last year, with earnings per share at NT$4.69 this year.
An analyst with KGI Securities also gave a thumbs-up to Delta's progress in securing orders from Sharp.
"It will prove that Delta, a supplier of power supply systems, is capable of making high-quality rear-projection TV sets," said the analyst, who requested anonymity.