CITIC Securities released a research report stating that Shouyu Times Electric (03898) “increased” the rating, with a target price of HK$37. The company is a comprehensive large-scale enterprise in the field of rail transit equipment in China. It has a stable position in the industry and has a leading market share. It is hoped that as a leader in rail transit traction systems, it can benefit from the upward cycle of the rail transit industry, and is optimistic about the sustainable and rapid development of its emerging business.
The bank pointed out that in recent years, Times Electric has been committed to developing emerging equipment businesses, focusing on rapid downstream development such as new energy vehicles, deepening related technology and launching products such as power semiconductor devices and electric drive systems for new energy vehicles, and gradually establishing brand awareness in new fields. CITIC Securities currently predicts that the company's net profit for each year from 2024 to 2026 will reach RMB 3,525 billion, RMB 4.157 billion and RMB 4.68 billion.