The electric vehicle market is set to accelerate in the next few years, with high visibility for Delta Electronics Co’s (台達電) orders in “the next three to four years,” the power and thermal management solutions provider said yesterday.
“Right now, electric vehicles are at about 2 percent saturation, but it might reach 10 to 12 percent by 2030,” Delta chairman Yancey Hai (海英俊) told an investors’ conference. “Price is coming down and charging stations are becoming more widespread.”
Delta provides direct current inverters, onboard chargers, charging stations and electric motors for electric vehicles. The company also produces power supplies and components for other electronic devices.
Photo: Chen Rou-chen, Taipei Times
In the third quarter, the company reported net profit of NT$8.39 billion (US$290.2 million), up 10.4 percent from the second quarter and 63.6 percent from a year earlier, or earnings per share of NT$3.23.
Due to rising demand for industrial automation and contributions from its Thai subsidiary, Delta’s revenue rose 9.9 percent quarterly and 7.2 percent annually to NT$77.68 billion last quarter, with gross margin of 31.9 percent and operating margin of 13.5 percent, company data showed.
By segment, the power electronics business grew the most, with NT$44.8 billion in sales, up 18 percent quarter-on-quarter and 17 percent year-on-year, it said, adding that this segment contributed NT$7.1 billion in profit last quarter, up 22 percent quarterly and 122 percent annually.
Although the power electronics segment benefitted from COVID-19-related demand for information and communications technology devices, its automation and infrastructure segments fell due to an inability to perform work on site, Hai said.
Sales in the automation segment were NT$9.7 billion, up 2 percent year-on-year, and revenue in the infrastructure segment was NT$23.1 billion, down 6 percent, data showed.
However, the infrastructure segment saw profit grow by 727 percent due to “good control of raw material prices,” Delta’s investor relations officer Rodney Liu (劉致遠) said.
Meanwhile, the pandemic has disrupted Delta’s plans to complete production facilities in India, CEO Cheng Ping (鄭平) said.
“Factories due to start operating by March this year have to wait until next year,” Cheng said, adding that the company has shifted some production to Thailand instead.
Delta produces 65 percent of its products in China, 20 percent in Thailand and 15 percent in factories outside those regions.
Despite the strong New Taiwan dollar, Delta reported foreign exchange income of NT$96 million last quarter, thanks to its hedging strategies, Delta chief financial officer Judy Wang (王淑玲) said.
“Swings in exchange rates affect us less,” she added.
Next year, Hai said to expect the unexpected.
“All we can do is be prepared, who knows what kind of black swans could be waiting,” he said.
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