SET-listed Delta Electronics Thailand Plc, a maker and distributor of power management systems and electronics components, expects 2019 revenue growth of 10-15%, driven by new orders of components for electric vehicles (EVs) and network systems.
If realised, such growth would mean an all-time high for two straight years after Delta achieved 2018 revenue of 53.94 billion baht.
Delta is keen to make EV parts to support the growing global fleet. At the same time, the company has enjoyed positive momentum from the US-China trade war, as Thailand can ship electric parts to the US tariff-free.
Executive director Anusorn Muttaraid said revenue from network systems has reached US$150 million a month, up from $50-100 million a year earlier.
"Delta has secured new orders in the US already," he said, adding that US and European shipments account for 30% each in Delta's export revenue.
"Delta is confident in the global economy expanding further, even though the trade war issue is the main factor in slowing economic growth," Mr Anusorn said.
The trade war is pressuring firms to move out of China, he said.
Delta is also preparing new production lines at Bang Poo Industrial Estate in anticipation of more orders from Chinese clients.
"The new production lines are completed and commenced operation in the first quarter," Mr Anusorn said.
Moreover, Delta plans to spend 100-200 million baht on maintenance and upgrades at three plants: Wellgrow (Chachoengsao), Bang Poo (Samut Prakan) and a facility in India.
In 2018, Delta spent 600 million baht on maintenance and upgrades.
"Work on the facility at Bang Poo will be complete by June, while the Wellgrow plant will finish in the third quarter," Mr Anusorn said. "For India, the facility will be complete in the fourth quarter."
Delta reported first-quarter sales of 12.95 billion baht, up 3.5% year-on-year. Net profit for the period rose 2.8% to 1.08 billion baht.
Mr Anusorn said the company will discuss its five-year business plan, including projects with Taiwan-based Delta Electronics, in June after Delta's shareholder structure changes.
Last August, Delta reported that Delta Electronics International Singapore had made a conditional voluntary tender offer for all ordinary shares of Delta Electronics Thailand worth 88.6 billion baht.
The offer is for Delta's ordinary shares, totalling 1.247 trillion, at an offering price of 71 baht a share.
DELTA shares closed yesterday on the Stock Exchange of Thailand at 74 baht, down 25 satang, in trade worth 63.4 million baht.