Goldman Sachs downgraded the rating of Times Electric to "Neutral," with a target price raised to 43.9 yuan

Goldman Sachs published a report, downgrading the rating of Times Electric (03898.HK) H shares from "Buy" to "Neutral" based on valuation considerations, and removing the 20% holding company discount, with a target price raised from HKD 35.1 to HKD 43.9.

Goldman Sachs believes that Times Electric's current valuation is reasonable, as the stock price has risen 18% year-to-date, currently trading at an expected price-to-earnings ratio of 11 times for 2026, with a projected compound annual growth rate of earnings per share of 7% from 2026 to 2030. After the market closed on February 6, Times Electric released preliminary results for the fiscal year 2025 that met expectations, with revenue and net profit for 2025 reaching RMB 28.761 billion and RMB 4.105 billion, respectively, representing year-on-year increases of 15% and 11%, which were 1% lower and 3% higher than the bank's expectations