GLONGHUI, April 28 | According to a report by Citigroup Research, Times Electric announced strong results for the first quarter of 2024, although the year-on-year increase in profit during the period was lower than CRRC. The company's net profit increased 30% year-on-year to 568 million yuan, which mainly led to a 27% year-on-year increase in revenue for the first quarter of 2024 and a 1.6 percentage point increase in gross margin over the same period last year. According to the bank, unlike the first few quarters of 2023, Times Electric's rail transit business recorded a 44% year-on-year increase in the first quarter, replacing the emerging equipment business as the main driving force for growth in the first quarter, which is also in line with management's views. The bank also believes that gross margin recorded an increase of 1.6 percentage points year-on-year, mainly due to favorable product mix changes. The high-margin rail transit business accounted for 54% of total revenue in the first quarter of 2024 (48% in the first quarter of 2023). The bank reiterated its “buy” rating for Era Electric, with a target price of HK$33.3.