Delta Electronics May Revenue Hits NT$58.9B, Up 43% YoY, Second Highest Ever

Delta Electronics today announced its May revenue of NT$58.962 billion, a month-on-month increase of 0.5% and a year-on-year increase of 43.7%, making it the second-highest monthly revenue in history, second only to March's NT$59.779 billion. Cumulative revenue for the first five months of this year reached NT$277.006 billion, up 38% from the same period last year. Delta Electronics Chairman Cheng Ping stated at the end of April's earnings call that the company's main growth momentum this year still comes from AI. According to the revenue breakdown for May across four major business segments, the Power and Components business group accounted for 54% of revenue, while the Infrastructure business group, which includes AI cooling solutions, accounted for 33%. Together, these two segments made up 87% of total revenue. As for the electric vehicle market, which continues to face headwinds, the Transportation business group's revenue share dropped to just 5% in May, down significantly from 9% in the same period last year. On profitability, Chairman Cheng noted that the gross margin improved in the first quarter, mainly due to product mix and economies of scale. He believes that with the rapid growth in AI data center demand, related products have higher gross margins than the overall average, driving economies of scale, and expects Delta's high gross margin to be sustainable for a period of time.