Inovance(SZ:300124) Soochow Securities·2024-07-28 08:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to see significant growth in its industrial automation segment, while the new energy vehicle sector is entering a harvest period [1] - The company forecasts a revenue increase of 25%-30% for the first half of 2024, with a projected revenue of approximately 158.75 billion yuan, representing a year-on-year growth of 28% [3] - The report highlights the company's strong operational alpha, despite challenges in the industrial control sector and significant impacts from the new energy vehicle market [3] Revenue and Profit Forecast - Total revenue is projected to grow from 30,420 million yuan in 2023 to 37,292 million yuan in 2024, reflecting a year-on-year growth rate of 22.59% [2] - The net profit attributable to the parent company is expected to increase from 4,742 million yuan in 2023 to 5,456 million yuan in 2024, with a growth rate of 15.06% [2] - The report anticipates a stable profit margin despite increased competition and pricing pressures in the new energy vehicle sector [3] Segment Performance - The industrial automation segment is expected to grow by 15%-20% year-on-year, driven by demand from traditional industries and overseas markets [3] - The new energy vehicle segment is projected to see a revenue increase of over 60% in Q2 2024, although profit margins may be under pressure due to competitive pricing [3] - The elevator business is expected to maintain stable growth of 0-5% for the year, supported by overseas expansion and large-scale projects [4] Valuation and Target Price - The report adjusts the net profit forecast for 2024-2026 to 54.6 billion yuan, 66.2 billion yuan, and 78.4 billion yuan respectively, with corresponding P/E ratios of 23x, 19x, and 16x [4] - A target price of 71.4 yuan is set for 2024, based on a P/E ratio of 35x [4]