Times Electric(HK:03898) First Shanghai Securities·2024-08-28 13:15Investment Rating - The report maintains a "Buy" rating for CRRC Times Electric (3898) with a target price of HKD 42.4, indicating a potential upside of 44.5% from the current price [1]. Core Views - The company experienced significant growth in the first half of 2024, with a revenue increase of 19.99% to CNY 10.284 billion and a net profit growth of 30.56% to CNY 1.507 billion [1]. - The rail transit business is recovering, with the company maintaining a stable market share and optimistic revenue growth expectations for the year [1]. - Emerging equipment business is also growing rapidly, particularly in power semiconductor devices, with a market share ranking second in China's passenger vehicle power semiconductor installation [1]. Summary by Sections Financial Performance - In the first half of 2024, revenue reached CNY 10.284 billion, a 19.99% increase, while net profit was CNY 1.507 billion, up 30.56% [1]. - The rail transit business generated CNY 6.139 billion in revenue, growing by 30.87%, while the emerging equipment business brought in CNY 4.094 billion, increasing by 9.21% [1]. Business Segments - Rail Transit: The demand for high-speed train maintenance and upgrades is expected to boost revenue in the coming years, with a stable market share maintained [1]. - Emerging Equipment: The power semiconductor segment is set to expand with new production capacity coming online, and the company is positioned well in the market for SiC products [1]. Future Projections - Revenue forecasts for 2024-2026 are CNY 24.218 billion, CNY 27.070 billion, and CNY 30.589 billion, with growth rates of 11.1%, 11.8%, and 13% respectively [1]. - Net profit projections for the same period are CNY 3.633 billion, CNY 4.171 billion, and CNY 4.462 billion, with growth rates of 17%, 14.8%, and 7% respectively [1].