Delta Electronics Thai

Delta Electronics Thai Plc  
 
Delta’s earnings, like most of the other electronics firms, are likely to disappoint in 2H11 despite the peak sales season. Continuous weak demand in its high-margin solar-related business, coupled with possible provisions, will negatively affect its bottomline. We cut our FY11-13 profit forecasts and lower our target price (0.8x P/BV, the lower end of range during global financial crisis vs. 1.7x P/BV previously). We also downgrade Delta from Outperform to UNDERPERFORM with weak results a de-rating catalyst.