Glonghui, April 28 | Morgan Stanley published a research report stating that Times Electric's railway business recorded a strong recovery in the first quarter of this year, and the expansion of gross margin supported the steady growth of the company's net profit. According to the bank, Times Electric's bidding situation in the second quarter of this year will be the key to its continued growth. Although the company's emerging business performance in the first quarter fell slightly short of Damo's expectations, the bank remained constructive about the company's long-term growth potential. Damo also anticipates that Times Electric's railway equipment business this year will grow steadily during the industrial upgrade cycle. At the same time, growth in emerging businesses is expected to slow, but it will remain above 20% year-on-year. Damo has an “gain” rating, and the target price is HK$27.