Core Viewpoint - Citigroup's report indicates that Delta Electronics' Q3 performance for FY2026 slightly missed expectations due to recent copper cost increases, leading to a downward revision of profit forecasts for FY2026 to FY2028 by approximately 5% [1] Financial Performance - Target price for Delta Electronics has been reduced from HKD 33 to HKD 32, maintaining a "Neutral" rating, with expectations of short-term pressure on the company's stock price [1] - The company's involvement in AI liquid cooling pumps and humanoid robot supply chains is viewed as overvalued, with projections indicating that these segments will only contribute 1% and 3% to total sales in FY2026 and FY2027, respectively [1] Profit Contribution - Expected gross profit contributions from the AI-related business are projected to be 2% in FY2026 and 6% in FY2027, indicating a minimal impact on overall financial performance for FY2027 [1]

Core Viewpoint - Morgan Stanley maintains an "Overweight" rating and a target price of HKD 59 for Delta Electronics Holdings (00179), despite a mixed performance in recent operational data [1] Financial Performance - Delta's revenue for the first three fiscal quarters ending December remained flat year-on-year, but the third fiscal quarter saw a 2% increase to USD 893 million, indicating a gradual recovery [1] - The revenue growth in the third quarter was slightly below Morgan Stanley's expectations, primarily due to the slower-than-expected project initiation by Chinese automotive companies [1] Business Segments - The industrial products segment continues to outperform due to structural market share growth [1] - Limited data disclosure regarding humanoid robots and AI data center cooling businesses adds uncertainty to short-term visibility [1] - The recovery speed of the automotive products business remains uncertain, impacting short-term outlook [1]