CICC Maintains Outperform Rating on TIMES ELECTRIC with HK$44 Target Price

Stock News03-30

CICC has reaffirmed its Outperform rating on TIMES ELECTRIC (03898), maintaining a target price of HK$44. The current share price implies 2026E/2027E P/E multiples of 9.5x and 8.4x, respectively, while the target price corresponds to 2026E/2027E P/E multiples of 11.3x and 10.0x, representing an upside potential of 19.0%.

The company reported its 2025 financial results, with revenue reaching RMB 28.703 billion, a year-on-year increase of 15.23%. Net profit attributable to shareholders was RMB 4.097 billion, up 10.64% compared to the previous year. In the fourth quarter of 2025, revenue amounted to RMB 9.873 billion, rising 14.10% year-on-year, while net profit attributable to shareholders was RMB 1.376 billion, an increase of 14.54%. The results were in line with market expectations, following a preliminary earnings announcement.

CICC has largely maintained its forecast for 2026 net profit attributable to shareholders and newly introduced a 2027 estimate of RMB 5.238 billion. Looking ahead to 2026, the institution expects the rail transportation business to remain stable, while emerging equipment operations continue their growth trajectory.

TIMES ELECTRIC is focused on both transportation and energy sectors, strengthening its leading position in rail transit traction systems while progressively developing six segments: semiconductors, new energy power generation, automotive electric drives, marine equipment, and industrial equipment.

In rail transportation, the company is fully supporting the CR450 EMU to complete 600,000 kilometers of operational assessment, contributing to China's high-speed rail entering the "400 km/h era." The semiconductor business is steadily increasing its market share and systematically ramping up high-quality production capacity, including IGBT facilities in Yixing and SiC operations in Zhuzhou.

The new energy business is accelerating its overseas market presence, enhancing the global competitiveness of products such as photovoltaic inverters and energy storage converters. In the automotive sector, leveraging its fifth-generation pure electric high-voltage SiC integrated electric drive platform, the company continues to make breakthroughs with key customer groups.

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