Delta Electronics Inc (台達電), power management solution supplier, expects its electric vehicle component revenue to enjoy a high-speed growth rate this year, thanks to a significant improvement in raw material supply constraints, a larger production scale and increases in customer orders.
The company last year experienced solid growth in EV power supply units, despite supply constraints in chips and other raw materials capping some shipments, Delta said.
However, as the pressures ease this year, Delta expects growth to be even “faster than last year,” company chairman Yancey Hai (海英俊) told an investors’ conference.
Photo: CNA
Hai said he is bullish about the world’s EV market growth this year as traditional automakers such as Ford and Toyota are joining Tesla Inc to introduce new EV models in response to growing trends in the market.
“Many new EV models are equipped with Delta’s components,” Hai said.
With robust momentum, Delta expects its EV component business unit to show a profit this year, Hai said.
Delta supplies a wider range of EV components, including on-board battery chargers, battery power management systems and direct-current converters.
The company counts major automakers from the US, Europe and Japan as its customers, with major US automaker Ford being a prominent client, Hai said.
Delta also made progress in expanding its EV piles business, as the private sector joined government agencies to deploy charging stations to satisfy demand, Hai said.
In Taiwan last year, the company generated significant revenue from EV piles, he said, adding that revenue would increase this year.
Regarding increasing competition, Hai said that Delta has been in the EV business for many years and has expertise in operating smart grids, while newcomers undervalue the “potential risks” in tapping into this market.
Delta’s power electronics unit, its largest revenue contributor, last year experienced strong revenue growth of 21 percent year-on-year to NT$227.31 billion (US$7.48 billion), although the business unit’s profit grew at a faster pace of 50 percent annually to NT$32.15 billion.
Looking ahead, Delta’s EV, cloud-based devices and automation systems units are expanding quickly, with the exception of components used in consumer electronics such as PCs and mobile phones, Delta CEO Cheng Ping (鄭平) said.
Gross margin is to hold steady this year, compared with 28.8 percent last year.
Delta on Wednesday reported net profit last year grew 21.9 percent year-on-year to NT$32.67 billion, due to rising shipments of products used in servers, data centers, EVs and building automation products.
Delta said its board of directors approved a plan to pay a cash dividend of NT$9.84 per share this year, representing a payout ratio of 78.22 percent as the company’s earnings per share last year reached a record NT$12.58.
As the nation’s leading power and thermal solutions provider, Delta last year distributed a cash dividend of NT$5.5 per share to shareholders.
The proposed payout for this year is subject to shareholder approval at the company’s annual general meeting on June 13, Delta said in a regulatory filing on Wednesday.
Additional reporting by Chen Cheng-hui
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS