SET urges caution after Delta surges to new high

The Stock Exchange of Thailand (SET) has told investors to exercise caution when trading shares of Delta Electronics Plc after the price surged for three consecutive days to reach an all-time high of more than 1,100 baht yesterday.

In a statement, investors were told the SET is monitoring the trading of Delta shares. The price exceeded 1,100 baht per share on Thursday, with the highest trade value on the Thai bourse of 5.87 billion baht. Delta's price-to-earnings ratio and price-to-book ratio were 89.42 and 25.09, respectively, as of Thursday.

Prices of Delta, Thailand's leading electronics component manufacturer, rose by 2.86% and 9.34% on Wednesday and Thursday, respectively. Despite the caution from the SET, the price continued to soar yesterday, rising 3.09% to 1,134 baht by midday.

"The SET requests investors look into [Delta's] fundamentals, risks and information disclosures, as well as analysis from securities firms before making a trading decision," the statement said.

In a response to a Bangkok Post request, Delta Thailand said the company "has not had any significant change or developments that are not disclosed".

"We have no comment on any kind of speculative trading. If there are any significant business developments, we will disclose them in a fair and transparent manner to investors through the SET platform," Delta said.

In related news, the Delta board's resolution to split its par value is subject to further approval from its annual general shareholders' meeting on April 7.

"If approved, we will proceed with share registration with the Commerce Ministry within 14 days. The SET then makes a public announcement and it may take a few more working days for the new par value, if any, to take effect," according to a statement from Delta. "We expect this process to be completed by the end of April or early May."

Last year the company posted consolidated sales revenue of 119 billion baht, up 40.6% from 2021, with a net profit of 15.4 billion baht, compared with 6.69 billion a year earlier.

Delta shares closed yesterday on the SET at 1,142 baht, up 3.82%, in trade worth 5.29 billion baht.