Delta Electronics (Thailand) Plc expects revenue this year to rise 5% from the year before, targeting double-digit net profit through next year, says investor relations chief Kulwadee Kawayawong,
Ms Kulwadee noted revenue in the fourth quarter is expected to reach US$200-300 million, similar to the first quarter this year, due to seasonal effects.
To achieve its target, the company expects higher demand in the US and Asia next year, as the euro zone will remain sluggish.
She said the company will increase production of some high-margin products to serve rising demand in Australia, New Zealand and Asean.
"With this strategy, we should be able to maintain double-digit profit this year and next," said Ms Kulwadee.
Delta's sales revenue was at $364 million in the third quarter, up 9% from the second quarter and 8% from the same period the year before. The gross profit margin was better than expected at 30.8% compared with 23.3% a year before.
For the first nine months, Delta had a net profit of 3.4 billion baht, up 60% from a year before.
Delta wants to invest in a new plant in Asean, expanding from its three production bases in Thailand, India and Slovakia. However, production cost will be the major factor determining whether expansion takes place.
Tisco Research stated that Delta's prominent result surprised the market, leading it to revise its full-year net profit projection for the company.
Shares of DELTA closed on the SET yesterday at 29.75 baht, down 50 satang, in trade worth 46.86 million baht.
About the author
- Writer: Nuntawun Polkuamdee
Position: Business Reporter