Founder Securities: Maintain the "recommended" rating of Times Electric (688187.SH) Rail equipment business is in line with expectations The emerging equipment business continues to develop

Zhitong Finance APP learned that Founder Securities released a research report saying that maintaining the "recommended" rating of Times Electric (688187.SH) is expected to achieve revenue of 153.5/176.3/20.24 billion yuan and net profit attributable to the mother of 22.4/28.5/3.35 billion yuan from 2021 to 2023.

Event: On October 30, the company released the third quarter report of 2021, and achieved operating income of 3.23 billion yuan and net profit attributable to the mother of 510 million yuan in the third quarter.

The main views of Founder Securities are as follows:

The market space is vast and the performance remains stable

Benefiting from the favorable national policies, China's rail transit industry has a sustained growth momentum and broad development space. In the first three quarters of 2021, the company achieved revenue of 8.53 billion yuan and net profit attributable to the mother of 1.2 billion yuan.

The rail equipment business is in line with expectations and leads the domestic market

According to public information statistics, the company ranked first in the domestic urban rail traction converter system market share for nine consecutive years from 2012 to 2020, with a market share of more than 50% in 2018 and a market share of more than 60% in 2019 and 2020. In the field of urban rail construction machinery, the company's market share in the past three years was 29.9%, 35.8% and 28.2%, respectively, maintaining a high level.

The emerging equipment business continues to develop, and the IGBT production line of vehicle regulations is progressing rapidly

The company is one of the leading IDM model enterprises in China that master the technology of IGBT, SiC, high-power thyristor and IGC devices and their components. 1700V-6500V series high voltage IGBT products break the monopoly situation of foreign countries; 750V and 1200VIGBT have been applied to new energy vehicles, and have established important partnerships with many leading domestic vehicle companies.

R&D investment has risen year after year, and intelligent development has been laid out in advance

In the first three quarters of 2021, R&D investment was 1.08 billion yuan, accounting for 12.6% of revenue. In the past three years, R&D investment has continued to maintain a high level. On the basis of consolidating the current leading position, the company closely follows the intelligent development direction of the rail transit industry and reserves intelligent application technology in advance.

Risk warning: R&D progress is less than expected; Overseas market development is less than expected; Market competition has intensified.

This article originated from Zhitong Finance Network