Citigroup: Reiterate "buy" rating on Zhuzhou CRRC Times Electric (03898) with a target price of HKD 43.2.

Citibank released a research report, reiterating a "buy" rating on Zhuzhou CRRC Times Electric (03898) with a target price of 43.2 Hong Kong dollars. The bank stated that it expects Zhuzhou CRRC Times Electric's ROE to gradually recover to 11% and 12.2% in 2024 and 2025, close to the level in 2019. The management of Zhuzhou CRRC Times Electric pointed out several positive factors of the company, including the net profit of 708 million yuan in the first half of this year in its power semiconductor business, of which 100 million to 150 million yuan came from government subsidies. Therefore, the bank believes that the 20% price correction after the company's performance in the second quarter of this year is unjustified.