Core Viewpoint - First Shanghai maintains a "Buy" rating for Times Electric (03898) with a target price of HKD 55.0, projecting revenue growth from 2025 to 2027 at 11.7%, 11.1%, and 12.0% respectively, and net profit growth at 10.7%, 11.8%, and 10.4% [1] Group 1: Financial Performance - In the first three quarters of 2025, the company reported revenue of CNY 18.83 billion, a year-on-year increase of 14.9%, and a net profit attributable to shareholders of CNY 2.72 billion, up 10.9% year-on-year [1] - The company's non-recurring net profit reached CNY 2.61 billion, reflecting a significant year-on-year growth of 30.9% [1] - The overall gross margin improved by 3.1 percentage points to 32.4%, primarily due to changes in revenue structure [1] Group 2: Business Segments - The rail transit business generated revenue of CNY 10.31 billion, a year-on-year increase of 9.2%, while the emerging equipment business achieved revenue of CNY 8.43 billion, growing by 22.3% [1] - Within the emerging equipment segment, revenue from basic components reached CNY 3.84 billion, up 30.4%, and revenue from new energy generation was CNY 1.59 billion, increasing by 25.3% [1] - The electric drive for new energy vehicles generated CNY 1.87 billion, reflecting a year-on-year growth of 9.3% [1] Group 3: Industry Trends - The rail transit business is experiencing stable growth, with maintenance services accounting for approximately 22% of rail transit revenue in the first three quarters of 2025, indicating a significant increase compared to the same period last year [2] - The demand for rail maintenance is expected to rise due to high passenger volumes and the replacement of old diesel locomotives, creating a continuous demand for new locomotives [2] - The company is expanding into new areas within rail transit, such as communication signals and other rail equipment, which are expected to become new growth drivers [2] Group 4: Semiconductor and New Energy - The new semiconductor factory in Yixing has reached full production capacity of 30,000 wafers per month, contributing to significant revenue growth [3] - The 8-inch silicon carbide production line in Zhuzhou is progressing, with equipment installation expected to be completed by the end of 2025 [3] - The new energy generation division has begun independent operations and has achieved slight profitability, with future business expansion anticipated in photovoltaic and energy storage sectors through collaborations with CRRC and Zhuzhou Institute [3] - The automotive electric drive segment has established partnerships with major automakers, including Chery and SAIC, with a notable increase in delivery volumes in Q3 2025 [3]

Core Viewpoint - The report maintains a "Buy" rating for Times Electric (03898) with a target price of HKD 55.0, projecting revenue growth from 27.8 billion to 34.6 billion RMB from 2025 to 2027, with net profit increasing from 4.1 billion to 5.1 billion RMB during the same period [1] Group 1: Financial Performance - In the first three quarters of 2025, the company reported revenue of 18.83 billion RMB, a year-on-year increase of 14.9%, and a net profit attributable to shareholders of 2.72 billion RMB, up 10.9% year-on-year [1] - The company's non-recurring net profit reached 2.61 billion RMB, reflecting a significant year-on-year growth of 30.9% [1] - The overall gross margin improved by 3.1 percentage points to 32.4%, primarily due to changes in revenue structure [1] Group 2: Business Segments - The rail transit business generated revenue of 10.31 billion RMB, marking a year-on-year increase of 9.2%, while the emerging equipment business achieved revenue of 8.43 billion RMB, up 22.3% [1] - Within the emerging equipment segment, the revenue from basic components was 3.84 billion RMB, growing by 30.4%, and revenue from new energy generation reached 1.59 billion RMB, increasing by 25.3% [1] - The automotive electric drive segment reported revenue of 1.87 billion RMB, reflecting a year-on-year growth of 9.3% [1] Group 3: Industry Trends - The rail transit business is experiencing stable growth, with maintenance services accounting for approximately 22% of rail transit revenue in the first three quarters of 2025, indicating a significant increase compared to the same period last year [2] - The demand for rail maintenance is expected to rise due to high passenger volumes and the replacement of old diesel locomotives, creating continuous incremental demand [2] - The semiconductor new factory has reached full production capacity of 30,000 pieces per month, contributing to rapid revenue growth [3]

Core Insights - The article highlights the significance of Silicon Controlled Rectifiers (SCR) in the power electronics sector, emphasizing their efficiency in energy control and their role in industrial automation and renewable energy applications [1][6][9]. Industry Overview - SCRs are based on a four-layer, three-terminal semiconductor structure, allowing precise control of high current with minimal input [2][3]. - The Chinese government is promoting the development of the energy electronics industry through various policies aimed at technological innovation and industry collaboration [6][9]. Market Structure - The SCR industry is characterized by a supply chain where the upstream includes high-purity silicon wafers, with an increase in self-sufficiency for 8-inch wafers but continued reliance on imports for 12-inch wafers [6][7]. - The downstream market is dominated by applications in power and industrial control, accounting for nearly two-thirds of the market, with renewable energy as a key growth driver [7][8]. Market Size and Growth - The SCR market in China is projected to reach 5.6 billion yuan in 2024, driven by the demand for ultra-high voltage power grids and photovoltaic energy storage [9][10]. - The high-voltage direct current (HVDC) market is expected to grow significantly, reaching 89.2 billion yuan in 2024, with a compound annual growth rate of 42.3% [8][9]. Competitive Landscape - The industry is marked by a clear division where domestic companies dominate the mid-to-low-end market, while international giants control the high-end segment [10][11]. - Local firms are increasingly focusing on high-end applications, leveraging cost advantages and integrated device manufacturing (IDM) models [10][11]. Development Trends - The SCR industry is undergoing a transformation driven by the adoption of third-generation semiconductor materials like silicon carbide (SiC) and gallium nitride (GaN), enhancing product performance [11][12]. - There is a shift towards smart integrated systems, with products evolving to include real-time monitoring and predictive maintenance capabilities [12][13]. - The trend towards domestic production and supply chain integration is strengthening the competitive position of local companies in the global market [13].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a steady revenue growth with a total revenue of 18.83 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 14.86%. The net profit attributable to shareholders reached 2.72 billion yuan, up 10.85% year-on-year, while the non-recurring net profit grew by 30.92% to 2.61 billion yuan [2][5]. - In Q3 2025, the company achieved a revenue of 6.62 billion yuan, reflecting a year-on-year growth of 9.58%, with a net profit of 1.05 billion yuan, up 7.69% year-on-year [2][5]. - The report anticipates stable growth in the rail transit business, an upward trend in the semiconductor sector, particularly in IGBT for rail networks, and positive performance in new energy generation and marine engineering sectors [11]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company generated a revenue of 188.30 billion yuan, a 14.86% increase year-on-year. The net profit attributable to shareholders was 27.20 billion yuan, up 10.85%, and the non-recurring net profit was 26.14 billion yuan, marking a 30.92% increase [2][5]. - In Q3 2025, the company reported a revenue of 66.16 billion yuan, a 9.58% increase year-on-year, with a net profit of 10.49 billion yuan, up 7.69% [2][5]. Business Segments - The rail transit equipment business showed steady growth, with revenue of 103.05 billion yuan for the first three quarters, a year-on-year increase of 9.23%. Key segments included rail transit electrical equipment at 80.76 billion yuan (up 5.82%) and communication signals at 7.58 billion yuan (up 14.47%) [11]. - The emerging equipment business also performed well, generating 84.26 billion yuan in revenue, a 22.26% increase year-on-year. Notable growth was seen in basic components (30.4% increase) and new energy generation (25.26% increase) [11]. Future Outlook - The company is expected to maintain a positive trajectory in its rail transit business and semiconductor sector, with projections for net profits of 4.25 billion yuan and 4.88 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of 16.7 and 14.5 [11].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 呈交日期: 2025年10月31日 致：香港交易及結算所有限公司 公司名稱: 株洲中車時代電氣股份有限公司 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03898 | 說明 | H 股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 489,040,900 | RMB | | 1 | RMB | | 489,040,900 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 489,040,900 | RMB | | 1 | RMB | | 489,040,900 | | 2. ...

Market Overview - On October 31, the rail transit equipment sector experienced a decline of 3.08%, with Times Electric leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Individual Stock Performance - Notable gainers in the rail transit equipment sector included: - Langjin Technology (300594) with a closing price of 18.84, up 3.69% [1] - Gongda High-Tech (688367) with a closing price of 22.50, up 2.74% [1] - Tianzhi New Materials (688033) with a closing price of 7.22, up 1.83% [1] - Conversely, Times Electric (688187) saw a significant decline of 6.99%, closing at 52.20 [2] - Other notable decliners included: - Kanni Electromechanical (603111) down 6.30% [2] - China CRRC (601766) down 4.60% [2] Capital Flow Analysis - The rail transit equipment sector experienced a net outflow of 169 million yuan from institutional investors, while retail investors saw a net inflow of approximately 2.44 million yuan [2][3] - Key stocks with significant capital flow included: - Shenzhou High-Speed Railway (000008) with a net outflow of 33.77 million yuan from institutional investors [3] - Bid Technology (605298) with a net inflow of 14.70 million yuan from institutional investors [3] - Langjin Technology (300594) with a net inflow of 12.77 million yuan from institutional investors [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 株洲中車時代電氣股份有限公司 呈交日期: 2025年10月31日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03898 | 說明 | H 股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 489,040,900 | RMB | | 1 | RMB | | 489,040,900 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 489,040,900 | RMB | | 1 | RMB | | 489,040,900 | | 2. ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 64.86 and HKD 50.02 [6][12][13] Core Insights - The company reported Q3 revenue of RMB 6.616 billion, a year-on-year increase of 9.58% but a quarter-on-quarter decrease of 13.82%. The gross margin improved slightly to 33.18% [1] - The company is expected to maintain steady growth driven by robust demand in its rail transit business and breakthroughs in high-voltage power devices, new energy generation, and deep-sea equipment [1] - The semiconductor business continues to grow significantly, benefiting from new domestic and international orders in the new energy sector [3] Summary by Sections Rail Transit Business - Revenue for the rail transit business reached RMB 10.305 billion in the first three quarters, up 9.23% year-on-year. The growth is attributed to increased orders from national railway tenders and maintenance services [2] - The company has secured significant orders for high-speed trains, with a total of 278 units tendered this year, surpassing last year's total [2] - Maintenance revenue for the first three quarters was RMB 2.215 billion, reflecting a year-on-year growth of 19.59% [2] Emerging Business - The emerging equipment business generated RMB 8.426 billion in revenue, a year-on-year increase of 22.26%. The semiconductor segment saw a growth of 30.40% [3] - The company has successfully entered new markets for its silicon carbide products and has received substantial orders in photovoltaic and charging infrastructure [3] - New energy generation projects have also seen success, with over 15 GW of photovoltaic integration products tendered in the first three quarters [3] Profit Forecast and Valuation - Revenue forecasts for 2025, 2026, and 2027 are maintained at RMB 28.661 billion, RMB 33.021 billion, and RMB 37.392 billion respectively, with net profit expectations of RMB 4.175 billion, RMB 4.657 billion, and RMB 5.229 billion [4][10] - The valuation analysis suggests a target market value of RMB 420 billion for the emerging equipment business and RMB 461 billion for the rail transit equipment and other businesses [12][13]

Core Viewpoint - The company reported a revenue increase of 14.86% year-on-year for the third quarter of 2025, reaching RMB 18.83 billion compared to RMB 16.39 billion in the same period last year [6][10]. Financial Data Summary - The company achieved a total revenue of RMB 25,813.38 million for the year 2024, with total assets amounting to RMB 58,912.91 million and net assets of RMB 22,668.87 million, resulting in a net profit of RMB 1,511.45 million [14]. - As of September 30, 2025, the company had 21,458 A-share shareholders and 1,020 H-share shareholders [6]. Related Party Transactions - The company has entered into a framework agreement with China CRRC Group Co., Ltd. for mutual supply of products and services from 2026 to 2028, with expected transaction amounts exceeding RMB 30 million, requiring shareholder approval [12][13]. - The independent directors confirmed that the related party transactions are based on a long-term business relationship and do not harm the interests of minority shareholders [12][18].

Summary of the Conference Call for Times Electric (2025) Company Overview - **Company**: Times Electric - **Period**: First three quarters of 2025 - **Revenue**: 18.83 billion CNY, up 14.86% YoY - **Net Profit**: 2.72 billion CNY, up 10.85% YoY - **Core Business Areas**: Rail transit equipment, emerging equipment, and basic components Key Financial Highlights - **Rail Transit Equipment Revenue**: 10.30 billion CNY, up 9.23% YoY [2][5] - **Emerging Equipment Revenue**: 8.43 billion CNY, up 22.26% YoY [2][5] - **Basic Components Revenue**: 3.84 billion CNY, up 30.40% YoY [2][5] - **Comprehensive Gross Margin**: Increased by 3 percentage points YoY [2][6] - **R&D Investment**: 1.97 billion CNY, up 22% YoY [2][7] - **Operating Expenses**: Decreased to 4% of revenue [2][6] Business Segment Performance - **Power Semiconductor Revenue**: 3.9 billion CNY, up 23% YoY, but profit margin slightly declined [2][9] - **New Energy Vehicle Drive System**: Cumulative delivery of 430,000 sets, revenue of 1.8 billion CNY, up 9% YoY, but overall business incurred losses [2][20] - **High Voltage IGBT Revenue**: Increased by 63%, with a market share of approximately 50% [2][28][30] Market and Strategic Developments - **Market Expansion**: Entered supply chains of major automakers including Volkswagen, Toyota, and General Motors, with over 14 partnerships [2][10] - **Silicon Carbide Production Line**: Actively developing domestic and international customers, applicable in new energy vehicles and photovoltaic fields [2][11][12] - **New Energy Generation**: Secured over 15 GW in photovoltaic contracts, ranking third domestically, and actively expanding overseas [2][22][26] Challenges and Outlook - **Inventory Growth**: Primarily due to lower turnover rates in the emerging equipment sector compared to rail transit [2][15] - **Profitability Decline**: Notable decrease in net profit in Q3 attributed to semiconductor price drops [2][24] - **Future Revenue Growth**: Uncertainty in Q4 revenue growth due to pending settlements in rail transit [2][15] Additional Insights - **Government Subsidies**: Revenue from government subsidies is influenced by the broader economic environment [2][18] - **High Voltage IGBT Market**: Anticipated growth driven by domestic and international projects, with stable competition [2][28][30] - **Data Center Opportunities**: Exploring high voltage and high power semiconductor markets, with ongoing discussions [2][27] This summary encapsulates the key points from the conference call, highlighting the financial performance, business segment developments, market strategies, challenges, and future outlook for Times Electric.