The Zhitong Finance App learned that Times Electric (03898) rose by more than 4% and rose 4.43% at press time to HK$29.45, with a turnover of HK$64.41 million.
According to reports, the company's traditional rail transit equipment business achieved revenue of 12.9 billion yuan in 2023, an increase of 2% over the previous year, of which revenue from new rail transit construction was about 11.1 billion yuan, and rail transit maintenance revenue was about 1.8 billion yuan. Open Source Securities expects the revenue growth rate of the new construction business to slow down in the future, while maintenance revenue is expected to continue to grow rapidly. At the same time, the rail transit equipment business is expected to benefit from equipment renewal policies. In addition, revenue from the emerging equipment business in '23 was 8.7 billion yuan, up 70% year on year, with a gross profit margin of 28.2%, up from 25.7% in 2022, benefiting from increased capacity utilization and yield in the semiconductor sector and lower procurement costs. Demand for the emerging equipment business is still strong, and the bank expects the business to continue its high growth trend in 2024-2026.
Management said that with its nature as a vertically integrated design and manufacturing (IDM) and a full range of products, the company can stand out from the increasingly fierce competition in the NEV power semiconductor business and IGBT industry. In terms of railway equipment, although equipment replacement is affected by central government subsidies, management is confident that strong maintenance operations will continue to drive the growth of railway equipment revenue in 2024.