Times Electric(SH:688187) Shanghai Securities·2024-09-06 11:00Investment Rating - The investment rating for the company is "Buy" (maintained) [4][11]. Core Views - The company has demonstrated stable growth in its rail transit business, with a significant increase in revenue from new energy locomotive development and overseas market expansion [5]. - The emerging equipment business is expected to see breakthroughs driven by innovation, particularly in power semiconductor devices and carbon silicon products [5]. - The company is well-positioned to capitalize on the opportunities presented by the "new infrastructure" initiative, particularly in the intercity and urban rail sectors [5]. Financial Summary - For the first half of 2024, the company achieved operating revenue of 10.284 billion yuan, a year-on-year increase of 19.99%, and a net profit attributable to shareholders of 1.507 billion yuan, up 30.56% year-on-year [5]. - The rail transit equipment segment generated revenue of 6.139 billion yuan in 2024H1, reflecting a year-on-year growth of 30.87% [5]. - The emerging equipment business reported revenue of 4.094 billion yuan in 2024H1, with a year-on-year increase of 9.21% [5]. Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 3.750 billion yuan, 4.374 billion yuan, and 5.285 billion yuan, corresponding to year-on-year growth rates of 20.76%, 16.61%, and 20.84% respectively [5][6]. - The earnings per share (EPS) for the same period is projected to be 2.66 yuan, 3.10 yuan, and 3.74 yuan, with corresponding price-to-earnings (PE) ratios of 17, 14, and 12 times [5][6]. Market Position - The company maintains a stable market share in the rail transit sector, with significant orders in the urban rail signaling system contributing to revenue growth [5]. - The company ranks among the top in the domestic market for photovoltaic inverters, with a bid-winning capacity of 8.35 GW in 2024H1 [5][7].