According to a report published by Bank of America Securities, Times Electric's second-quarter revenue increased 4% year-on-year to 8 billion yuan, lower than the bank's forecast of 5%. Gross margin was 32.5%, up 1.4 percentage points year on year, but fell 0.8 percentage points quarterly, higher than the bank's forecast of 31.3%. Net profit was 1.1 billion yuan, up 3% year on year, but lower than the bank's forecast of 1.2 billion 14%, mainly due to high R&D expenses and exchange losses. After considering the results for the second quarter, the bank lowered its profit forecast for 2026 to 28 by 5%, 4% and 3%, respectively, due to an increase in operating expenses; the target price was lowered from HK$44 to HK$43, reflecting the revised profit forecast and reaffirming the “neutral” rating. It believes that there is pressure on the short-term profitability of its emerging equipment business, but this was partly offset by long-term opportunities in the post-railway market and the increase in the market share of emerging equipment.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.