Times Electric(03898) 东吴证券·2024-08-29 10:11Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue for the first half of 2024 reached 10.28 billion yuan, a year-on-year increase of 20%, with a gross margin of 27.8%, down 3 percentage points year-on-year. The net profit attributable to shareholders was 1.51 billion yuan, up 31% year-on-year [2] - The railway investment in China is rapidly increasing, benefiting the company's rail transit equipment business, which saw a revenue increase of 31% year-on-year in the first half of 2024 [3] - The emerging equipment segment continues to grow, with a revenue increase of 9% year-on-year in the first half of 2024, driven by the demand for new energy vehicles and power semiconductor devices [4] Summary by Sections Financial Performance - Total revenue for 2022 was 18.034 billion yuan, with a projected increase to 22.447 billion yuan in 2023, and further to 26.672 billion yuan in 2024, reflecting a year-on-year growth rate of 19.26%, 24.47%, and 18.82% respectively [2] - The net profit attributable to shareholders was 2.556 billion yuan in 2022, expected to rise to 3.106 billion yuan in 2023 and 3.615 billion yuan in 2024, with growth rates of 26.67%, 21.51%, and 16.39% respectively [2] Business Segments Rail Transit Equipment - The company achieved revenue of 6.14 billion yuan from rail transit equipment in the first half of 2024, a 31% increase year-on-year, benefiting from a significant rise in national railway fixed asset investment [3] - The demand for rail transit equipment is expected to remain strong due to the recovery in passenger transport and increased railway investments [3] Emerging Equipment - Revenue from emerging equipment reached 4.09 billion yuan in the first half of 2024, a 9% year-on-year increase, with significant contributions from power semiconductor devices and new energy vehicle systems [4] - The company is expected to maintain growth in this segment as production capacity is released and new products are introduced [4] Profitability and Valuation - The report adjusts the expected net profit for 2024 and 2025 upwards to 3.62 billion yuan and 4.38 billion yuan respectively, with a projected net profit of 4.88 billion yuan for 2026 [4] - The price-to-earnings ratio (P/E) based on the closing price on August 28, 2024, is projected to be 10.4 for 2024, 8.6 for 2025, and 7.7 for 2026 [4]