Times Electric(SH:688187) Changjiang Securities·2025-04-02 12:14Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company has shown steady growth in its operations, with significant contributions from its rail transit, semiconductor, and marine engineering equipment businesses [2][5]. - The company achieved a revenue of 24.909 billion yuan in 2024, representing a year-on-year increase of 13.42%. The net profit attributable to shareholders was 3.703 billion yuan, up 21.77% year-on-year, while the net profit excluding non-recurring items reached 3.226 billion yuan, growing by 24.28% [5]. Summary by Sections Business Performance - The rail transit equipment business generated revenue of 14.636 billion yuan, a year-on-year increase of 13.37%. The breakdown includes rail transit electrical equipment (10.990 billion yuan), rail engineering machinery (1.891 billion yuan), communication signal systems (1.105 billion yuan), and other rail transit equipment (650 million yuan) [10]. - The emerging equipment business reported revenue of 10.115 billion yuan, up 13.71% year-on-year, with contributions from basic components (4.110 billion yuan), new energy vehicle drive systems (2.569 billion yuan), new energy generation (2.036 billion yuan), marine engineering (865 million yuan), and industrial converters (535 million yuan) [10]. - The company's subsidiary, CRRC Times Semiconductor, achieved revenue of 4.365 billion yuan and a net profit of 1.193 billion yuan, with a net profit margin of 27.3% [10]. Financial Metrics - The company's gross margin for 2024 was 32.48%, an increase of 3.87 percentage points year-on-year. The net profit margin attributable to shareholders was 14.9%, up approximately 1.0 percentage point [10]. - The company expects to achieve net profits of 4.35 billion yuan and 4.90 billion yuan in 2025 and 2026, respectively, corresponding to price-earnings ratios of 14.9 and 13.2 times [10]. Market Expansion - The company is expanding its rail transit business into international markets, securing multiple overseas orders worth nearly 800 million yuan [10]. - The emerging equipment business is gaining traction, with the IGBT module achieving the highest market share in the rail transit and power grid sectors domestically, and significant growth in the new energy market [10]. Future Outlook - The company maintains a positive outlook on its dual-driven strategy of rail transit and emerging equipment, expecting continued growth and market share expansion [10].