TIMES ELECTRIC (03898) surged over 5% in afternoon trading, accumulating gains of more than 20% for the month. As of press time, the stock was up 4.89% to HK$38.6 with turnover of HK$252 million.

On the news front, China Railway Group announced on August 19 the second batch tender for high-speed electric multiple units (EMU) in 2025, totaling 210 sets (174 trains), with tender volume exceeding market expectations. SWHY Securities noted that this single tender quantity represents the highest level in nearly five years, and expects additional tenders for local railway and intercity railway EMUs in the second half of the year, making the full-year tender volume outlook more optimistic.

The firm pointed out that passenger volume and vehicle overhaul maintenance serve as the underlying logic for the tender exceeding expectations. Additionally, as the design life of the first batch of EMUs approaches, replacement demand is urgently awaiting release.

Public information shows that TIMES ELECTRIC is a leading domestic rail transit equipment enterprise. Huatai Securities noted that the company's first-quarter rail transit business growth primarily benefited from increased maintenance service demand. The firm expects continued steady growth in rail transit business in 2025, mainly due to sustained high demand for China Railway maintenance and anticipated volume growth in urban rail maintenance. Furthermore, the old-for-new policy is expected to drive updates of aging diesel locomotives, promoting demand growth for new energy locomotives.