1 AIT Asian Institute of Technology

An analysis of the share performance of Delta Electronics (Thailand) PCL

AuthorLi, Xue
Call NumberAIT RSPR no. SM-98-61
Subject(s)Stocks--Prices--Thailand
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration. School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-98-61
AbstractDelta Electronics (Thailand) PCL is a Taiwanese invested company in Thailand. It was listed in the Stock Exchange of Thailand in 1995. During 1997 and at the beginning of 1998 Delta share price enjoyed a rocket rally from the record low of 60 to the highest level of 840 Baht, and currently is trading at 500 to 600 Baht. This research study is concentrated on the analysis of Delta Electronics (Thailand) share performance. In the study some stock brokers and research companies are interviewed to access the way their thinking when they invest in stock market. Some quantitative analyses are also made in the study in order to have a completed picture of the company, Delta Electronics (Thailand) PCL. There are many factors that would be coricerned by stock investors. Macro economic indicators are definitely needed when investors are thinking country selection for stock investment. Industry situation is an important factor to select the investing sector. In Thailand, stock market is quiet and share price are at a fairly low level. Through some assessment of Thai economy 1997 and prospect 1998, the author has concluded that in Thailand, interest rate and fundamental economy is negative to the stock market while liquidity and trends for the country economic growth are positive to the stock market in 1998. Delta's share price rallied from around 80 Baht to 800 Baht, which amazed all investors in Thailand. After a thorough analysis of the company the author concluded that it is the healthy operation other than speculation that propelled the share price to a sky level. Delta is highly geared to rapid changing computer market. In the past several years it enjoyed double digit growth rate, especially last year it benefited from Thai Baht devaluation and achieved 21 % growth rate. Valuation to Delta share included analysis of the company's information that investors are interested in, namely sales, customers, products, competition, operation, finance, strategy and management. In order to solve the liquidity problem of Delta shares in the stock market Delta will dilute its share in the ratio of 2: 1. After the new valuation of Delta share the author recommended investors BUY Delta share below 260 Baht after the capital increase right date of April 20, 1998.
Year1998
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-98-61
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C.S.
Examination Committee(s)Do Ba Khang ;Buchel, Bettina
Scholarship Donor(s)Asian Institute of Technology
DegreeResearch Studies Project Report (M. Sc.) - Asian Institute of Technology, 1998


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