Times Electric(SH:688187) EBSCN·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company in both A-shares and H-shares [2][6]. Core Viewpoints - The company achieved record high performance in 2023, with operating revenue of 21.8 billion yuan, a year-on-year increase of 20.9%, driven by significant growth in emerging equipment business [2][6]. - The company’s net profit attributable to shareholders reached 3.11 billion yuan, up 21.5% year-on-year, with an EPS of 2.19 yuan [2][6]. - The emerging equipment segment saw a remarkable revenue increase of 69.6%, with power semiconductor devices, electric drive systems for new energy vehicles, and photovoltaic inverters leading the growth [2][6][4]. - The rail transit equipment business also showed stable growth, with revenue of 12.91 billion yuan, a 2.0% increase year-on-year, and the company maintained a market share of over 50% in the domestic urban rail traction system for 12 consecutive years [2][3]. Summary by Relevant Sections Emerging Equipment Business - The emerging equipment business generated revenue of 8.73 billion yuan, a significant increase of 69.6%, with power semiconductor devices, industrial conversion products, and electric drive systems for new energy vehicles showing substantial growth [2][6][4]. - The company’s power semiconductor devices achieved revenue of 3.108 billion yuan, up 69.4%, and it holds the leading market share in the rail transit and power grid sectors [3]. Rail Transit Equipment Business - The rail transit equipment segment reported revenue of 12.91 billion yuan, with specific contributions from traction systems, engineering machinery, and communication signals [2][3]. - The company secured a historical high in urban rail transit signal business, winning contracts for five lines [2][3]. Financial Performance - The company’s gross profit margin improved to 33.9%, up 1.2 percentage points year-on-year, and the net profit margin was 14.5%, up 0.1 percentage points [2][6]. - The forecast for net profit attributable to shareholders for 2024-2026 has been raised by 8.5% and 11.4% to 3.70 billion and 4.30 billion yuan, respectively [6].