Q3 Revenue Hits Record High for Same Period but Misses Expectations
TECO（1504）third-quarter revenue this year reached 168.5億元, up 15.9% year-on-year and 1.5% quarter-on-quarter, setting a record high for the same period, but still falling short of the 189億元 previously expected by institutional investors. Institutional investors explained that there is a time lag from order receipt to actual shipment for AI data center projects, dragging down short-term revenue recognition. However, electromechanical systems continued growth momentum in Asian and North American markets, coupled with contributions from power and energy, mid-sized data center and other businesses, overall revenue remained at a steady level. TECO shares rose 1.2元, or 1.74%, to 70.2元 yesterday (28). Looking ahead to the fourth quarter, institutional investors expect single-quarter revenue to reach 179.6億元, with gross margin of about 23.7% and EPS of 0.77元, and operations are expected to recover as project progress advances.
Expanding Southeast Asia Capacity with One-Stop Solutions
TECO in its AI data center布局, in addition to expanding Southeast Asia capacity and targeting AIDC and power infrastructure opportunities, is also strengthening its one-stop solution capabilities integrating power systems, cooling equipment and prefabricated electromechanical modules, while setting its sights on Singapore, Thailand, Indonesia and other Southeast Asian markets. Institutional investors pointed out that TECO is actively cultivating the Southeast Asian market and competing for AIDC orders through one-stop solutions, with follow-up opportunities worth watching.
MDC Shipment This Quarter, Maintains Buy Rating
Institutional investors pointed out that TECO's 2.7MW modular data center (MDC) proof-of-concept is expected to ship this quarter. The technology can sharply compress data center construction time from 15 to 20 months to within 9 months, and reduce capital expenditure by 15 to 20%. Related business is expected to gradually contribute from the fourth quarter of this year into next year, becoming one of the future growth drivers. On valuation, institutional investors revised down TECO's EPS estimates for this year and next to 3.27元 and 3.67元, and see 4.45元 for 2028. Considering competition in traditional electromechanical business and initial costs of data center business, institutional investors maintain a "Buy" rating while lowering the target price to 88元, remaining bullish on AIDC opportunities and overseas market expansion potential. Investing involves risks. Investors should carefully evaluate risks when making decisions and be responsible for their own investment results.