Zhi Tong Cai Jing·2025-11-03 07:09Core 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]