Delta Electronics Thailand, the country's most valuable electronics firm, reported slower profit growth in 2024, missing analysts' forecasts. The company's revenue growth for the year stood at 164.7 billion baht ($4.9 billion), reflecting a 12% increase from the previous year. Despite robust performance in its AI data center business, the weaker demand in the electric vehicle (EV) market impeded its overall profit growth.
The Bangkok-based company plays a pivotal role in the global electronics supply chain as a key supplier of power components to the U.S. chipmaker Nvidia. However, the strength of its AI data center operations was insufficient to fully offset the decline in demand from the EV sector, which has been experiencing a slowdown in 2024.
Delta Electronics Thailand's revenue growth in 2024 surpassed that of the previous year, indicating resilience in its core sectors. However, the anticipated profit growth did not materialize as expected, leading to a disappointing financial performance relative to market predictions.
The company's AI data center business remains a promising avenue, showcasing potential even as the EV market shows signs of slackening. This sector has emerged as a vital area for the company, underscoring its strategic importance in navigating challenges posed by fluctuating market demands.
Despite the challenges faced in 2024, Delta Electronics Thailand's revenue figures highlight a solid year-over-year increase. The company's ability to secure a 12% revenue growth indicates a strong operational foundation and continued relevance in the electronics industry.
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