DLEGF - The most valuable stock in Thailand is an electric vehicle industry supplier
2023-03-06 13:58:31 ET
Delta Electronics Thailand Public Company Limited ( OTCPK:DLEGF ) is the most valuable company listed on the Stock Exchange of Thailand and trades at a higher valuation than parent company Taiwanese auto parts manufacturer Delta Electronics.
The +160% 52-week rally in shares of Delta Thailand that pushed the company to the top of the list is tied to enthusiasm over the company's plans to double the size of its electric vehicles business, as well as the large incentive programs being offered by the Thai government to attract EV buyers. Delta Thailand is seen benefiting with BYD Company ( OTCPK:BYDDF ), Great Wall Motor Company ( OTCPK:GWLLF ) and Tesla ( TSLA ) all becoming more aggressive about selling electric vehicles in Thailand
Setting it apart from some U.S. electric vehicle companies, Delta Thailand is seeing strong revenue growth and net profit more than doubled in 2022. However, the stock still trades at what some analysts see as a rich valuation. Part of the premium on Delta Thailand is said to be due to the stock's inclusion in the widely followed SET50 index and a lack of pure play EV names in Thailand for investors who looking to place bets on the sector. It is unclear how long that premium will stay in place.
Read more about BYD's plans to grow EV sales in Thailand.
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The most valuable stock in Thailand is an electric vehicle industry supplier