Credit Lyonnais has released a research report stating that Times Electric (03898) is well-positioned in the railway order cycle. The firm has raised its earnings forecasts for 2024 through 2027 by 2%, 10%, and 14% respectively, and upgraded its valuation basis from a projected 11x P/E ratio for next year to 12x. The H-share target price has been increased from HK$36 to HK$43, while reaffirming the "Outperform" rating.

Times Electric reported a 13% year-on-year increase in first-half profits, with second-quarter revenue and earnings growing 20% and 13% year-on-year respectively. The first-half railway business growth was driven by increased demand and maintenance services. The company expects China Railway Corporation to launch large-scale tenders in the second half, including 210 Electric Multiple Unit (EMU) sets and 455 locomotives.

In the emerging equipment business, industrial power, new energy, and semiconductors have become the three fastest-growing segments, primarily benefiting from economies of scale, R&D advantages, and continued expansion of IGBT and silicon carbide production capacity.