HTSC·2025-08-25 06:52Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 63.58 RMB for A-shares and 49.30 HKD for H-shares [6][12]. Core Insights - The company achieved a revenue of 12.214 billion RMB in 1H25, representing a year-on-year increase of 17.95%. The net profit attributable to shareholders was 1.672 billion RMB, up 12.93% year-on-year. The growth was driven by increased demand in rail transit maintenance, power devices, and new energy generation sectors [1][4]. - The rail transit segment generated 6.911 billion RMB in revenue, a 12.58% increase year-on-year, primarily benefiting from the growth in national railway maintenance orders and new tenders for high-speed trains [2][4]. - The emerging equipment segment reported revenue of 5.244 billion RMB, up 25.88% year-on-year, with significant contributions from semiconductor and new energy generation businesses [3][4]. Summary by Sections Rail Transit Business - The rail transit business achieved a revenue of 6.911 billion RMB in 1H25, with significant growth in maintenance revenue, which rose by 47% year-on-year to 1.567 billion RMB. The company is expected to benefit from ongoing national railway tenders and maintenance projects [2][4]. Emerging Equipment Business - The emerging equipment segment generated 5.244 billion RMB in revenue, with notable growth in semiconductor revenue, which increased by 29.12% year-on-year. The company has successfully ramped up production capacity in its semiconductor business and made breakthroughs in new energy generation projects [3][4]. Profit Forecast and Valuation - The company is projected to achieve revenues of 28.661 billion RMB, 33.021 billion RMB, and 37.392 billion RMB for the years 2025, 2026, and 2027, respectively. The net profit estimates for the same years are adjusted to 4.175 billion RMB, 4.657 billion RMB, and 5.229 billion RMB [4][10]. The valuation is based on a sum-of-the-parts (SOTP) approach, with target market values of 345 billion RMB for emerging equipment and 519 billion RMB for rail transit equipment [12][13].