Times Electric(SH:688187) HTSC·2025-04-03 10:15Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [2][8][5] Core Views - The company's revenue for 2024 is projected to be 24.91 billion RMB, representing a year-on-year increase of 14.27%, with a net profit of 3.70 billion RMB, up 19.22% year-on-year, aligning with previous expectations [2][5] - The rail transit equipment business is expected to benefit from a renewal and maintenance cycle, leading to a revenue increase of 13.37% year-on-year, while the emerging equipment business is projected to grow by 13.71% year-on-year [2][3] - The report highlights the company's strong market position in rail transit and the potential growth from silicon carbide applications and deep-sea equipment driven by policy support [2][4] Revenue and Profit Forecast - The company is expected to achieve total revenue of 29.10 billion RMB in 2025, with a net profit of 4.26 billion RMB, reflecting a growth rate of 15.09% [7][15] - The emerging equipment segment is projected to generate 11.70 billion RMB in revenue, while the rail transit segment is expected to contribute 17.24 billion RMB [16] Business Segments - Rail Transit: Revenue from rail transit equipment is expected to reach 14.64 billion RMB in 2025, with significant growth driven by the renewal and maintenance of existing infrastructure [3][4] - Emerging Equipment: This segment is anticipated to generate 11.70 billion RMB in revenue, with key growth areas including power semiconductor devices and new energy vehicle drive systems [4][16] Valuation Analysis - The target price for A shares is set at 58.89 RMB, while H shares are targeted at 39.17 HKD, based on a historical average AH premium of 61.2% [5][14] - The valuation for the emerging equipment business is estimated at 356 billion RMB, while the rail transit equipment and other businesses are valued at 450 billion RMB [14][15]