Times Electric(688187) 国信证券·2024-11-03 15:31Investment Rating - The investment rating for the company is "Outperform the Market" [3][9]. Core Views - The report highlights a sequential increase in gross margin by 8.6 percentage points in Q3 2024, driven by robust growth in both rail transit and emerging equipment sectors [1]. - For the first three quarters of 2023, the company achieved revenue of 16.3 billion yuan, representing a year-on-year increase of 15.3%, and a net profit attributable to shareholders of 2.5 billion yuan, up 21.8% year-on-year [1]. - The rail transit equipment business grew by approximately 22% year-on-year, with revenue reaching 9.434 billion yuan in the first three quarters of 2024 [1]. - The emerging equipment sector also saw a year-on-year growth of 11%, with power semiconductor devices achieving revenue of 2.712 billion yuan, up 26.8% [1]. - The company is well-positioned in the domestic market, holding the largest market share in traction systems and accelerating development in maintenance and repair services [1]. Financial Performance Summary - Revenue for 2024 is projected to be 24.951 billion yuan, with a year-on-year growth of 14.5% [2]. - Net profit for 2024 is estimated at 3.705 billion yuan, reflecting a growth of 19.3% compared to 2023 [2]. - The company’s earnings per share (EPS) is expected to reach 2.62 yuan in 2024, with a projected PE ratio of 19.1 [2]. - The gross margin is anticipated to be around 30% in 2024, with an EBIT margin of 14% [2]. Business Segments Summary - The rail transit equipment segment is a significant growth driver, with a revenue increase of 22% year-on-year in the first three quarters of 2024 [1]. - The emerging equipment segment, including power semiconductors and electric drive systems for new energy vehicles, is also showing strong growth, with a notable increase in market share [1]. - The company’s semiconductor project in Yixing has entered trial production, focusing on applications in new energy vehicles [1].