TIMES ELECTRIC (03898) surged nearly 6% in morning trading, up 5.79% to HK$39.48 as of press time, with turnover reaching HK$118 million.

On the news front, TIMES ELECTRIC announced its interim results on August 22nd, reporting revenue of approximately RMB 12.214 billion for the first half of the year, up 17.95% year-on-year; net profit reached approximately RMB 1.6715 billion, representing a 12.93% year-on-year increase.

Huatai Securities noted that looking ahead to the second half of the year, with the continued peak period of China Railway's major maintenance and new EMU tender demands, plus the company's gradual order breakthroughs in high-voltage power devices, new energy generation, and deep-sea equipment sectors, the company's performance is expected to maintain steady growth.

HSBC previously issued a research report stating that TIMES ELECTRIC's new industry sales growth is supported by stable capacity expansion, while railway equipment sales remain stable. Catalysts include stronger EMU/locomotive tenders, faster capacity ramp-up at the Yixing IGBT factory, easing price wars, and the first-time distribution of interim dividends.

HSBC pointed out that TIMES ELECTRIC has underperformed the Hang Seng Index this year and maintains its "Buy" rating, as valuations are not high and steady progress in new industry sales will support valuation re-rating. The H-share target price has been raised from HK$38 to HK$47, implying a 2026 estimated P/E ratio of 13x to reflect stronger long-term growth.