TIMES ELECTRIC (03898) surged over 4% during morning trading. As of press time, the stock gained 4.22% to HK$42.46, with trading volume reaching HK$98.2776 million.

On the news front, China Railway's second EMU tender reached 210 units. Combined with the 68 units from the first tender this year, the cumulative total stands at 278 units, representing a 13.5% increase compared to 245 units for the entire year of 2024.

Industrial Securities noted that in early 2024, the National Railway Administration proposed to strive for the basic elimination of old diesel locomotives by 2027. As subsequent detailed regulations are gradually introduced, the retirement of old diesel locomotives will become another driving force for railway equipment growth. Meanwhile, in the urban rail sector, the weakening of local debt pressure has led to a recovery in profitability for subway and regional railway operations. The company's rail transit business overall shows an upward trend.

The firm pointed out that the company's emerging businesses have promising future prospects. In the power semiconductor segment, the Zhuzhou facility has been operating at full capacity since production began. The Yixing Phase 3 project is expected to be fully operational by the end of 2024, continuously enhancing production capacity for medium and low-voltage devices. The Zhuzhou Phase 3 project is currently under construction and is expected to commence production in 2026. With the commissioning of both the Yixing Phase 3 and Zhuzhou Phase 3 projects, the company's power semiconductor production capacity will experience rapid growth.