UBS issued a research report stating that it has slightly raised TIMES ELECTRIC's (03898) earnings per share forecast for 2025–2027 by 3%, reflecting improved profit margins. The bank also increased its target price based on a sum-of-the-parts valuation, primarily due to market revaluation of the power semiconductor business. The target price was raised from HK$45.2 to HK$48.3, implying a 13.7x 2026 forward P/E ratio. Considering the company's solid core business and growth potential in new segments, UBS maintained a "Buy" rating on the H-shares.

TIMES ELECTRIC reported revenue and net profit growth of 15% and 11% YoY, respectively, in the first three quarters, reaching RMB18.8 billion and RMB2.7 billion. This was mainly driven by robust growth in rail transportation (due to healthy passenger traffic recovery) and rapid expansion in emerging equipment products. Third-quarter revenue and net profit rose 10% and 8% YoY to RMB6.6 billion and RMB1 billion, broadly in line with market expectations.

Gross margin improved by 3 percentage points YoY in the first nine months, attributed to product mix upgrades in the rail transportation business. However, Q3 gross margin and net margin saw a 1 percentage point increase and a 0.3 percentage point decline YoY, settling at 33.2% and 15.9%, respectively. Operating cash flow for the first three quarters stood at RMB2.1 billion (compared to RMB554 million in the same period last year).