Times Electric(SH:688187)2024-07-19 10:02Investment Rating - The report maintains a "Buy" rating for the company [4][7]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 150.7 million yuan for H1 2024, representing a year-on-year increase of 30.56%. The net profit excluding non-recurring items is projected to be 126.8 million yuan, up 36.50% year-on-year [2][4]. - The growth in performance is driven by the booming rail transit industry and increased delivery of power semiconductors, benefiting from rising railway investments and passenger flow recovery [2][7]. - The company is positioned to benefit from the upward trend in the rail transit sector, maintenance cycles, and large-scale equipment updates, with significant increases in passenger traffic and fixed asset investments in railways [2][7]. Summary by Relevant Sections Financial Performance - The company anticipates a net profit of 150.7 million yuan for H1 2024, with a 30.56% year-on-year growth. The Q2 net profit is expected to be 93.9 million yuan, reflecting a 31% year-on-year increase and a 65% quarter-on-quarter increase [2][4]. - The company’s revenue for 2023 is projected at 21.799 billion yuan, with a growth rate of 20.88%. For 2024, revenue is expected to reach 25.717 billion yuan, growing at 17.97% [8]. Market Dynamics - The rail transit sector is experiencing high demand, with a total of 2.096 billion passengers transported in the first half of the year, marking an 18.4% increase year-on-year. Fixed asset investment in railways reached 337.3 billion yuan, up 10.6% year-on-year [2][7]. - The company is expanding its production capacity for low-voltage IGBTs, which are crucial for rail transit, power grids, and new energy vehicles, indicating a robust demand in these sectors [1][2]. Future Outlook - The company is expected to see a compound annual growth rate (CAGR) in net profit of 21.12% for 2024, 19.70% for 2025, and 14.47% for 2026, with corresponding earnings per share (EPS) of 2.66, 3.19, and 3.65 yuan per share [7][8]. - The integrated industrial layout in transportation and energy sectors positions the company for significant growth, transitioning from a focus on rail transit to a broader range of emerging equipment businesses [7].