2025年第四季度收入不及预期但盈利超预期；电气设备订单稳健；重申买入

4Q25 revenue miss but earnings beat; solidelectrical equipment orders; reiterate Buy Reiterate Rating:BUY| PO:39.00 CNY| Price:28.53 CNY 4Q25earnings +19% YoY, ahead of expectationsTGOOD reported 4Q25 financial resultson 8 Apr. In 4Q25, revenue came in at 09 April 2026 RMB6.0bn, down 8% YoY but +66% QoQ, 17% below our estimate, mainly on lower-than-expected revenue recognition of electrical equipment. GPM in 4Q25 was 28.9%, up0.7ppt YoY and 1.2ppt QoQ, below our estimate of 29.9%. That said, net incomeattribute to shareholders in 4Q25 was up 19% YoY and 55% QoQ to RMB557mn, 6%ahead of our expectation, mainly on less asset and credit impairment booked. Equity Electrical equipment orders remain robust In 2025, revenue from electricalequipment grew 3% YoY to RMB10.8bn. Among this,revenue from high-voltage/mid-voltage prefabricated substation grew 17%/4% YoY toRMB3.1bn/4.5bn. Its 4Q25 revenue was negatively impacted by the less installation ofsolar and wind projects in China after the rush installation before May 2025. That said,its electrical equipment orderbook has been robust year-to-date, with >RMB2.1bn ordersfrom major customers in 1Q26. Revenue from overseas amounted to RMB1.4bn in 2025(+189% YoY), accounting for 9% of its total revenue. We estimate its overseas sales willdeliver >60% CAGR in 2025-27, with revenue contribution increasing to 16% by 2027E. Yikai Liu, CFA>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 4212yikai.liu@bofa.com Ming Hsun Lee, CFA>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 5006minghsun.lee@bofa.com Raise 2026/27E earnings and lift PO; reiterate Buy Summer Wang, CFA>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 4351summer.wang@bofa.com Factoring in the4Q25 results, we cut our 2026/27E revenue forecast by 4%/3%, butraise our earnings estimate by 2%/1% on higher NPM forecast. Our new PO of RMB39(was RMB38) is derived based on 26x 2026E P/E (unchanged). We reiterate our Buyrating for TGOOD, given: (1) solid growth outlook of its electrical equipment (notablyprefabricated substation) in the overseas market amid rising concerns on energysecurity, (2) opportunities from AIDC supported by its launch of SST, (3) continuedprofitability improvement of its EV charging network business, and (4) attractivevaluation. Fiona Liang>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 4390fiona.liang3@bofa.com >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analystunder the FINRA rules.Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securities does and seeks to do business with issuers covered in its research AIDC: artificialintelligence datacenterSST: solid-state transformerEV: electric vehicle reports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 8 to 10. Analyst Certification on page 5. PriceObjective Basis/Risk on page 5.12956608 iQprofileSMTGOOD (A) Company SectorElectrical Equipment Company Description Qingdao TGOOD Electric Co., Ltd. is thelargest chargingnetwork operator in China with 19% market share in publiccharging piles in operation by 2025. The company alsosupplies electrical equipment (gas insulated switchgear,mid-voltage switchgear, transformer) and prefabricatedsubstations used in renewable power generation, powergrid, industrial and energy system. Investment Rationale We have a Buy rating for TGOOD, given: (1) solid growthoutlook of its electrical equipment (notably prefabricatedsubstation) in the overseas marketamid rising concerns onenergy security, (2) opportunities from AIDC supported byits launch of SST, (3) continued profitability improvementof its EV charging network business, and (4) attractivevaluation. Stock Data Price to Book Value3.0x Improving NPM of EV charging networkIn 2025, revenue from EV charging network amounted to RMB5.0bn, +2% YoY. Among this, revenue from equipment sales and charging network operation was up 3%/down2% YoY respectively, amid the company’s transition to asset-light business model. TELD(TGOOD’s EV charging infrastructure subsidiary) had 905k units of public charging pilesin operation (+28% YoY) by end-2025. It maintained 19% market share in publiccharging piles in operation, as of end-2025, ranking #1 in China. TELD’s net profit in2025 grew 14% YoY to RMB237mn, with GPM/NPM improving YoY to 34%/5% (from33%/4% in 2024). Earnings review and revisions Exhibit3: P&L summary (quarterly)We expect 2026earnings to grow28% YoY Price objective basis & risk TGOOD (XQGDF) Our PO of RMB39 is derived from 26x 2026E P/E. Our 26x target P/E is 1SD above its 3-year average (22x), which reflects our constructive outlook of it