Times Electric(688187) 长江证券·2024-03-14 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [3][64]. Core Viewpoints - The company's product structure is diversified, featuring a dual-engine model driven by rail transit equipment and emerging equipment, with expected revenue and performance improvements in 2023 [5][16]. - The railway market is recovering, with stable investment projected to return to 800 billion, benefiting from domestic railway construction plans and infrastructure growth [6][18]. - The emerging equipment business is experiencing rapid growth, particularly in power semiconductor devices, industrial conversion products, and electric drive systems for new energy vehicles [7][16]. Summary by Sections Rail Transit Equipment and Emerging Equipment Dual-Engine Drive - The company has a diversified product structure, including rail transit equipment and emerging equipment, benefiting from a strong management team with extensive experience [5][12]. - The rail transit equipment business is expected to recover in 2023, supported by the rapid development of the emerging equipment sector, leading to continuous improvement in revenue and performance [5][16]. Railway Investment Stability and Equipment Replacement Demand - The railway market is showing signs of recovery, with fixed asset investment expected to reach 800 billion, driven by ongoing construction and planning [18]. - The company has a strong market position in both railway and urban rail markets, with high barriers to entry due to regulatory requirements [27][28]. - The company has maintained a leading market share in urban rail traction conversion systems, with a significant portion of its revenue coming from this segment [30][64]. Emerging Equipment: Rapid Business Development - The emerging equipment business includes power semiconductor devices, industrial conversion products, and electric drive systems for new energy vehicles, all of which are experiencing significant growth [7][16]. - The global market for IGBT (Insulated Gate Bipolar Transistor) is expected to grow at a CAGR of 37.44% from 2016 to 2022, with the company positioned to benefit from this trend [49][51]. - The company is actively expanding its production capacity and enhancing its technology development in the power semiconductor sector, with a focus on IGBT and SiC (Silicon Carbide) devices [37][60]. Financial Projections - The company is projected to achieve a net profit of 3.106 billion, 3.607 billion, and 4.072 billion for the years 2023, 2024, and 2025, respectively, with corresponding PE ratios of 20x, 17x, and 15x [64].