SPDB International Securities released a research report on April 08, saying that it gave Times Electric (688187. SH, latest price: 45.2 yuan). The main reasons for the rating include: the company's revenue in 2024 increased by 14% year-on-year, net profit increased by 19% year-on-year, and the rail transit business and emerging equipment business both grew well. Looking ahead to 2025, the company's multiple business segments will contribute to growth. 1) Benefiting from the demand of China's new energy vehicle industry, the company's Yixing IGBT production line is expected to reach production by the end of this year. In addition, the SiC production line is expected to see product output within this year. 2) The maintenance business in the rail transit business will gradually become the focus of the company's business, and there is room for growth. 3) The company's emerging businesses such as offshore equipment are expected to maintain rapid growth in the short term and open the growth ceiling in the long term. 4) The company is committed to expanding overseas business. At present, the earnings ratios of Hong Kong stocks and A-shares of Times Electric are 8.6x and 13.6x respectively, and the valuations are attractive. We remain optimistic about Times Electric.

Risk Warning: Insufficient kinetic energy for new energy vehicle owners and power devices to pull goods; The capacity expansion of the power semiconductor industry is large; The decline in the price of power devices has led to a decline in gross profit; Intensified competition in the industry dragged down profits; The recovery and growth momentum of the rail transit business slowed down, and the demand for overhaul business was insufficient.

AI Comments: Times Electric has received the attention of 4 brokerage research reports in the past month, buying 2, with an average target price of 54.49 yuan, 9.29 yuan higher than the latest price of 45.2 yuan, and an average target price increase of 20.55%.