Times Electric(688187) 广发证券·2024-07-24 01:31Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with a target price of 67.81 RMB per share for A-shares and 47.47 HKD per share for H-shares [3]. Core Views - The company's mid-year performance exceeded expectations, with a year-on-year profit growth rate exceeding 30%. For the first half of 2024, the company achieved a net profit attributable to shareholders of 1.507 billion RMB, a year-on-year increase of 30.56%, and a net profit excluding non-recurring items of 1.268 billion RMB, up 36.5% [1]. - The growth in the delivery of traction systems for rail transit and the extended maintenance cycle is expected to further release profit elasticity. The fixed asset investment in railways reached 337.3 billion RMB in the first half of the year, a year-on-year increase of 10.6%, indicating sustained rapid growth [1]. - The company has a significant advantage in high-voltage IGBT and is expected to further expand in the ultra-high voltage sector. As a leading domestic supplier in the ultra-high voltage IGBT market, the company is positioned to benefit from the rapid growth in both the power grid and rail transit IGBT markets [1]. - The company is projected to see rapid growth in both its rail transit equipment and emerging equipment businesses. The forecasted net profits attributable to shareholders for 2024-2026 are 3.83 billion RMB, 4.71 billion RMB, and 5.69 billion RMB, respectively [1]. Financial Summary - The company's revenue for 2022 was 18.034 billion RMB, with a projected growth rate of 19.3% for 2023 and 24.1% for 2024 [2]. - The net profit attributable to shareholders for 2022 was 2.556 billion RMB, with a projected growth rate of 26.7% for 2023 and 23.3% for 2024 [2]. - The earnings per share (EPS) for 2022 was 1.80 RMB, with projections of 2.19 RMB for 2023 and 2.71 RMB for 2024 [2]. - The company’s return on equity (ROE) is expected to improve from 7.4% in 2022 to 9.4% in 2024 [2].