Lyon expects Era Electric's (03898) power semiconductor business to contribute about 36% of profits in the 2024 fiscal year.
The Zhitong Finance App learned that Lyon released a research report stating that the first “buy” rating for Shidai Electric (03898) has a target price of HK$36. The company will be the main beneficiary of China's rail transit upgrade and maintenance cycle for the next 3 years. As overdue advanced maintenance orders have begun to pour into the market, the number of orders received by the company in the first quarter of FY2024 was higher than in the full year of FY2023.
The bank estimates that China currently has about 3,000 old internal combustion locomotives that need to be replaced, which will provide replacement requirements worth more than 60 billion yuan. As for the emerging equipment sector, which has also entered the final stage of market integration, the bank expects the company's power semiconductor business to contribute about 36% of profits in the 2024 fiscal year.