Times Electric(SH:688187) Ping An Securities·2025-03-31 09:00Investment Rating - The report maintains a "Recommendation" rating for the company, indicating a positive outlook for the stock price performance [1]. Core Views - The company achieved a sales revenue of 24.909 billion yuan in 2024, representing a year-on-year growth of 13.42%. The net profit attributable to shareholders reached 3.703 billion yuan, up 21.77% year-on-year [4][8]. - The company is focusing on strengthening its position in the rail transit sector while expanding into emerging equipment markets, leading to overall operational efficiency improvements [8][11]. - The report highlights the company's successful acquisition of Hunan CRRC Commercial Vehicle Power Technology Co., Ltd., which will enhance its financial performance [4]. Financial Summary - Revenue and Profitability: The company reported a gross margin of 32.48% and a net margin of 15.85% in 2024. The operating expenses ratio decreased to 17.14% [8]. - Segment Performance: Rail transit equipment generated 14.636 billion yuan in revenue, a 13.37% increase, while emerging equipment products brought in 10.115 billion yuan, growing 13.71% [8]. - Future Projections: The company expects net profits of 4.309 billion yuan in 2025, 4.902 billion yuan in 2026, and 5.444 billion yuan in 2027, with corresponding EPS of 3.15 yuan, 3.58 yuan, and 3.98 yuan [11][12]. Key Financial Ratios - Profitability Ratios: The report projects a gross margin of 32.5% for 2025, with a net margin of 15.6% and ROE of 9.5% [13]. - Valuation Ratios: The P/E ratio is expected to decrease from 17.7 in 2024 to 12.0 by 2027, indicating improving valuation attractiveness [13]. - Debt Ratios: The company maintains a debt-to-asset ratio of 30.9% in 2024, with a projected decrease to 30.0% in 2025 [13].