Message from the Board
2024 has been a landmark year for Delta Electronics Thailand, full of notable market movements and elevated successes across key metrics. As the global risk landscape is evolving at an unprecedented pace, the impact of climate change, technology, and geopolitics continued to shape the risk outlook towards a more volatile environment. Against such a backdrop, we have weathered these challenges remarkably well, ensuring business resiliency against sustainability-related risks. We saw the global economy undergone through structural changes, which are deeply founded in deglobalization and shifts in geopolitical developments. To successfully thrive, we must firmly and forcefully address the challenges while seizing opportunities.
In recent years, Delta has enchanced and re-enforced from an ODM to a brand and solution provider, focusing on energy optimization and energy management, and continuously expanding its broader range of sustainability solutions in various domains. Throughout 2024, the Company made successful pivots into Artificial Intelligence, capitalizing on surging AI chip demand to accelerate growth. The AI boom has fully taken root with a future of rapid power increases, growing high computing servers, and datacenter infrastructure demands to deploy capacity for AI workloads. The digital infrastructure sector is poised for another dynamic year in 2025 as the AI revolution marches forward with the expected surge in power demand following large-scale deployments by top AI clusters in the years to come.
In many ways, 2024 has been another milestone achievement for Delta Electronics Thailand. Revenue stood at USD 4.6 billion, a healthy growth of 12% from 2023, and gross profit rose by 25% Y-o-Y, whereas operating margin slipped over the last quarter leading to recorded net profit at USD 529 million and EPS at THB 1.52 per share, a modest increase by 1% and 3% respectively in 2024. Despite short-term setbacks late last year based on softened conditions in subsectors and increased expenditures, overall fundamentals look firm with underlying core businesses well-positioned for growth. We possessed the financial resources and solid cash flows to capitalize on the structural drivers and underlying opportunities across the digital infrastructure landscape, alongside the tailwinds for datacenter particularly strong and set to expand in 2025 and beyond.
Having celebrated our 35th year as part of Thailand’s industrialization, Delta Electronics Thailand continues to thrive in the technology leadership while staying selective and dynamic across regions and markets to provide new capabilities and solutions that enable clients to grow and meet their evolving needs. We are accelerating the organizational competency for the transformation journey towards an integrated solution provider. This year marked the beginning of a new growth chapter with the inauguration of the Delta Plant 8 and new state-of-the-art R&D center to strengthen an innovation platform to meet the rising demand for energy-efficient products and advanced technologies. We are aggressively and progressively uplifting our R&D local capabilities. This milestone underscores our investment in Thailand's growing technological landscape and aligns with "Local for Local" talent initiative, which aims to foster local innovation to also serve customers worldwide. Moreover, we are commencing several plant construction projects to capture the foreseeable healthy demand. The progress of additional two plants in Wellgrow is on-track for completion by mid-2025 to cater for distributed manufacturing of Component businesses as well as Thermal management solutions.
Beyond innovation, we are poised to deliver transformative benefits to local communities and industries. Through collaboration with universities and startups, Delta fosters digital ecosystems, nurturing R&D talents, strengthening deep ties with tech leaders, forging meaningful partnerships between academia and industry, preparing the next generation for a technology-driven future. Strategic educational initiatives included high-tech talent internships, incubation programs, STEM education, Power Electronics Lab, Automation Academy, clean-tech value chain development, and bachelor’s and master’s technology projects. These initiatives address the growing need for skilled, innovation-driven professionals, aligning with Thailand’s transition to a more digital and innovative economy.
On the solution business front, Southeast Asia is transitioning to a new economic model that is more sustainable and technology-driven than before. Delta Electronics Thailand is committed to innovative climate technology and solutions, with decarbonization at the forefront. We are building the operating model of the future, one that is underpinned by a digital ecosystem, forming strategic partnerships and developing specialized technologies, and leveraging local supply chain advantages to offer competitive solutions. The backdrop for ASEAN markets heading into 2025 remains broadly positive. SEA continues being a powerhouse is many aspects. We are expanding operations significantly in Thailand and India to meet customers' local manufacturing needs and adapt flexibly to global geopolitical conditions. Our expanded presence also means deeper engagement in the region and we are excited to see these efforts scale further. India alongside SEA, is also an important opportunity over the long term. In 2024, we inaugurated new India headquarters and R&D center in Bengaluru to support long-term development goals.
Our strategic priorities are placed on capacity investment, supply chain diversification, advanced process technology, and accelerated Digital Smart Manufacturing implementation to achieve higher levels of operational efficiencies, all while pursuing sustainability targets and embracing renewable energy sources. By staying focused on strategic investments and operational excellence, we’re poised to turn the challenges into opportunities. Delta Electronics Thailand takes a dynamic approach to creating sustainable value. This includes a focus on creating products and services that contribute positively to environmental and social goals, while still achieving economic success. The Company’s recognition in the global benchmark for ESG performance and several prestigious accolades this year reflected its strong ESG practices, reinforcing trust and commitment to sustainable development.
Looking ahead to 2025, elevated geopolitical tensions contrast with a more positive outlook for the global economy. We expect global GDP to remain intact, fiscal policy should be a tailwind for growth, and financial conditions continue to normalise. Delta Electronics Thailand plans for growth and prepares for volatility. By leveraging our specialist expertise across a range of capabilities to deliver complex solutions, we strive to bring compelling opportunities to global and regional customers.
On behalf of the Board of Directors and Executive Management, we are grateful for unwavering trust and support by our shareholders, businesses partners, financial institutions, and relevant authorities. To our employees, we extend our deepest gratitude. Your dedication, creativity, and resilience are the driving forces behind our success. Together we have built Delta financially strong and a force for positive change in the world. As we reflect on 35 years of innovation and excellence, we are closing out the great achievement of 2024 with pride and momentum. Delta Thailand is well positioned to continue delivering value to our shareholders, customers and stakeholders for coming years.
