Taiwanese electronics manufacturing company Delta is currently celebrating its 50th anniversary. Established half a century ago in 1971, Delta was listed in 1988, and surged from NT$7 billion then to NT$800 billion in market value during 2021. Hai Ying-chun, Chairman of Delta, commented that the achievements of the company today are not only the recognition of the investors, but also indicates that the company has been doing the right thing as shown from the surging market value.
Looking back at the performance in 2020, Delta had achieved growth in revenue, profits, and earnings per share (EPS). The company produced a combined revenue of NT$282.605 billion in 2020, with a net profit after tax at NT$25.485 billion, and a historical EPS of NT$9.81. Among the three major business groups, automation and infrastructure respectively accounted for approximately 14% and 31% of the revenue, whereas electronic power supply had risen from 50% to 55% owing to the growth in demand for PCs and notebooks.
Prospecting into the future, Delta is optimistic towards the continuous popularity of electric vehicles. Having entered the particular field in 2008, the company had injected a substantial amount of investment in electric vehicles, and focused from engineering, manpower, and client relationship, to the supply chain and its own production capacity, where all products are sold after verification, co-development, and quality control are completed, which takes about 5-8 years. The cultivation of Delta has finally started to come to fruition after more than 10 years.
Cheng Ping commented that Delta has quite a high level of market shares in electric vehicle charging stations, and works with several international automotive manufacturers, where the ratio of critical components and parts for electric vehicles is now at 10%, and the market scale of electric vehicle drivetrain system is at roughly US$3 billion. The total addressable market (TAM) of electric vehicles is expected to arrive at US$33 billion by 2030, thus the company will strive to achieve a market share that is above the current figure in the future.
Delta is focused on electrical control and motor power systems in the field of electric vehicles. Hai commented that traditional automotive manufacturers such as Mercedes-Benz, Volkswagen, and Toyota are currently in full throttle for the implementation of electric vehicles as many countries have stipulated the prohibition of selling fossil fuel vehicles in 2030, and the company has major clients from traditional European, US, Japanese, and Chinese manufacturers.
Delta had in fact long started the layout in the charging systems of electric vehicles. Cheng, CEO of Delta, commented that charging station is merely an interface, and it contains numerous control as well as information contact and analysis systems within. Charging stations are required to connect to the grid, and the entire system is closely concatenated with the grid, charging station, and the vehicle.
Delta announced yesterday its incorporation into RE100, and the goal of achieving 100% power supply through renewable energy for all plants in the world by 2030. The internal carbon pricing is US$300/t, and the company is able to implement a renewable energy certificate mechanism in Europe and America, or autonomous establishment of power plants and the subsequent development in the market of green electricity for India and Thailand. Regarding the target of green energy this year, Delta also hopes to elevate the ratio of power consumption through renewable energy from 45% to 50%.
(Cover photo source: TechNews)