Citi initiates DELTON at Buy with HKD233 target on CPU supercycle

Citi initiated coverage on DELTON (01989.HK) with a Buy rating and a HKD233 target price, citing the CPU supercycle as a key growth driver for the printed circuit board maker.

The bank expects DELTON to be the biggest beneficiary among China's PCB companies as demand for CPU motherboards accelerates, according to a report published Tuesday. The company's leading position in the CPU motherboard segment and tight capacity among peers position it to capture additional market share, Citi said.

DELTON's market share is projected to rise to 18 percent to 23 percent in 2026-2028, up from 12 percent to 13 percent in 2024-2025, the report shows. The company has also entered key GPU and ASIC projects, with related revenue expected to take off significantly starting in the second half of 2026, supported by new capacity expansion in Guangzhou and Thailand.

Shares of DELTON jumped as much as 12.6 percent to HKD180.5 on Tuesday before settling at HKD178.3, up 11.7 percent. About 1.31 million shares changed hands, involving HKD229 million in turnover. The current price implies roughly 31 percent upside to Citi's HKD233 target.

The initiation adds a bullish voice to a stock that has been gaining momentum. Investors will watch for updates on the Guangzhou and Thailand capacity expansions and further GPU and ASIC project wins as key catalysts through 2026.

This article is for informational purposes only and does not constitute investment advice.