Shares of Delta Electronics Thailand plummeted nearly 30% as trading commenced on Monday morning. The sharp decline followed the disclosure of the company's lackluster full-year results after the market closed on Friday. As Thailand's most valuable electronics company, Delta's performance had a significant impact on the Thai stock market, contributing to an over 2% drop in the benchmark SET index.
Delta Electronics Thailand's recent financial report revealed a concerning slowdown in net profit growth to 2.8% for 2024, a stark contrast to the 20% increase seen the previous year. Despite a 12% rise in revenue for 2024, the company's profits were severely affected by weak demand in the electric vehicle sector. This led to a staggering 78% fall in fourth-quarter profits compared to the same period in 2023. The electric vehicle market is a crucial segment for Delta's mobility wing, amplifying concerns among investors.
The Thai stock market's reaction to Delta's poor performance was immediate and pronounced. The SET index's over 2% loss on Monday morning underscored the significant influence Delta Electronics holds within the industry. Analysts and investors closely monitor the company's results due to its pivotal role in the electronics sector, making it a bellwether for broader market trends.
The disappointing results from Delta Electronics Thailand also signal growing pessimism surrounding the artificial intelligence boom, which had previously fueled optimism in tech markets. As one of the leading players in Thailand's electronics industry, Delta's performance serves as a crucial indicator of market sentiment and economic health.
Leave a Reply