Inovance(SZ:300124) Xin Lang Cai Jing·2026-01-20 14:33Core Viewpoint - The article discusses the growth and strategic direction of Huichuan Technology, highlighting its market position, financial performance, and plans for international expansion through an H-share IPO in Hong Kong. Company Background - Huichuan Technology was founded in Shenzhen in 2003 by Zhu Xingming and former employees of Huawei Electric after its sale to Emerson [1][4] - The company has grown to a market capitalization of approximately 200 billion RMB, making it a notable player in the capital market [2][14] Financial Performance - For the first three quarters of 2025, Huichuan Technology reported revenue of 316.63 billion RMB, a year-on-year increase of 24.67%, and a net profit of 42.54 billion RMB, up 26.84% [10][21] - The company is projected to achieve nearly 46 billion RMB in revenue and 5.5 billion RMB in net profit by 2025 [4][16] Strategic Initiatives - Huichuan Technology is planning to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international strategy and diversify financing channels [4][16] - The company aims to strengthen its international brand image and competitiveness in global markets [24] Product Development and Market Position - Huichuan Technology has established itself as a leader in the domestic market for variable frequency drives, surpassing foreign brands like ABB and Siemens [18][20] - The company has expanded its product offerings to include servo drives, PLCs, and components for electric vehicles, achieving a market share of 15.9% in servo motors [9][18] Challenges and Future Directions - The company faces challenges such as slowing growth in its core industrial automation segment and rising raw material costs, prompting a price increase for some products starting January 2026 [10][21] - Huichuan Technology is entering new fields such as humanoid robots and energy storage, reflecting a strategic pivot to capture emerging market opportunities [11][22] International Expansion - The company is focusing on building an international platform that includes sales, R&D, and supply chain capabilities to better serve global clients [24] - Huichuan Technology plans to adopt strategies for overseas expansion, including "industry line going abroad" and "borrowing ships to go abroad," although it currently has a small share in international markets [23][24]