Citigroup lowers Time Electric's target price to HKD 40, with a weak outlook for the year ahead.

Citibank released a report stating that, similar to the conservative guidance for 2026 provided by CRRC, Times Electric holds a similarly weak view on the prospects for rail transportation equipment and emerging equipment businesses this year, especially in the field of power semiconductors. The bank believes that the slowdown in the bidding speed for high-speed EMU trains not only hinders the revenue growth of rail transportation equipment, but may also lead to a contraction in gross profit margins, as EMU trains are a high-margin business. As for the power semiconductor business, management's concerns not only stem from pricing pressure, but also from a lack of experience in increasing the production capacity of silicon carbide wafers. The bank has lowered its profit forecasts for 2026 and 2027 by 10% and 12% respectively, reduced the target price from HK$42.5 to HK$40, maintained a "neutral" rating, as management plans to enhance shareholder returns through share buybacks.