Mitigation in Material Shortages; Delta: 2H22 to Surpass 1H22 in Performance

published: 2022-07-29 9:30 | editor: | category: News

Delta hosted an online earnings call today (29th) and announced its financial statements and 1H22 performance. When looking ahead to 2H22, Yancey Hai, Chairman of Delta, commented that there has been a mitigation in material shortages, and is optimistic towards 2H22 performance.

According to the 2Q22 financial statements, Delta generated a QoQ and YoY increase of 25.9% and 0.51% in profit after tax at NT$7.627 billion, with a consolidated revenue of NT$89.996 billion that is a new record for a single quarter under a YoY and QoQ increment of 14% and 9%. Delta yielded a consolidated gross margin of 29.4% and an EPS of NT$2.94.

Delta accumulated NT$172.534 billion in consolidated revenue during 1H22 under a YoY increase of 14.07%, as well as a consolidated gross margin of 28.39% under a YoY reduction of 1.55 percentage points. Hai, when prospecting into 3Q22 and 4Q22, pointed out that the performance in 2H22 will surpass that of 1H22, and that the third quarter of a year usually performs better than 4Q22, though it is still too early to tell since there are other uncertain factors such as the GDP figures of the US and the zero-tolerance policy of China.

Hai explained that the company is still doing pretty well in power components, while the mitigating material shortages for data centers and electric vehicles would facilitate smooth shipment in 2H22, whereas AI automation will have to depend on the recovery of Chinese market. Hai pointed out that electric vehicle shipment was impeded by chip shortages during 1H22, and now break even may be possible within several months now if the issue is resolved since shortages have started seeing an alleviation in May and June.

 (Cover photo source: captured by TechNews)

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