Jin Rong Jie·2025-09-08 05:05Core Viewpoint - Times Electric reported a strong performance in the first half of the year, with significant revenue and profit growth, supported by stable sales in the railway equipment sector and expansion in new industries [1] Financial Performance - The company achieved a revenue of approximately 12.214 billion yuan, representing a year-on-year increase of 17.95% [1] - Net profit reached about 1.6715 billion yuan, reflecting a year-on-year growth of 12.93% [1] Market Analysis - HSBC's report highlights that Times Electric's sales growth in new industries is supported by stable capacity expansion, while railway equipment sales remain steady [1] - Key catalysts for growth include stronger bidding for high-speed trains and locomotives, faster capacity enhancement at the Yixing IGBT factory, alleviated price competition, and the first interim dividend distribution [1] Investment Outlook - Despite underperforming against the Hang Seng Index this year, HSBC maintains a "Buy" rating for Times Electric, citing low valuation and steady progress in new industry sales as factors supporting a valuation reassessment [1] - The target price for H-shares has been raised from 38 HKD to 47 HKD, implying a projected price-to-earnings ratio of 13 times for 2026, reflecting stronger long-term growth potential [1]