J.P. Morgan said it is optimistic about the upward potential of Times Electric (03898) in terms of railway equipment due to the strong increase in demand for railway passengers after the epidemic, as well as benefiting from policy measures.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintained the “gain” rating of Times Electric (03898) and lowered the target price from HK$57 to HK$47. The market is concerned that the company recently switched its focus back from the IGBT/semiconductor business to railway equipment/parts, mainly due to global IGBT companies emphasizing the risk of price reduction due to weak terminal demand and oversupply. The bank is optimistic about the rising potential of the company's railway equipment due to the strong increase in demand for railway passengers after the epidemic and benefiting from policy measures. As for the IGBT/semiconductor business, the bank believes that the company's vertically integrated business model will help reduce the risk of oversupply.