Power supply and energy management solution provider Delta Electronics regards mergers and acquisitions as a main source of revenue growth and aims to acquire large industrial automation firms in two years, company chairman Yancey Hai said at a March 10 investors conference.
Delta Electronics has to reserve a considerable portion of net earnings to fund mergers and acquisitions and thus has decided to distribute a cash dividend per share of NT$5.00 for 2016, accounting for 69.06% of the corresponding net EPS, Hai noted.
Delta Electronics has entered the automotive passive component sector. Automotive passive components are required to stand high temperatures and vibration and have higher gross margins. In view of growing demand for automotive passive components, Delta Electronics’ subsidiary maker Cyntec is expanding production capacity in eastern China with investment of US$100 million and will bring the additional capacity into operation in third-quarter 2017.
Delta Electronics had power supplies and components accounting for 50.9% of fourth-quarter 2016 consolidated revenues, energy management devices 27.5%, smart green life products 20.2% and others 1.4%.
Delta Electronics has reported consolidated revenues of NT$16.026 billion (US$522 million) for February, growing 11.03% on month and 29.02% on year, and those of NT$30.460 billion for January-February rose 3.01% on year.
Source: Company, compiled by Digitimes, March 2017
Delta Electronics chairman Yancey Hai
Photo: Ninelu Tu, Digitimes, March 2017
Article source: http://www.digitimes.com/news/a20170312PD200.html