Inovance(SZ:300124) Huachuang Securities·2024-08-28 00:03Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 65.9 CNY, compared to the current price of 41.70 CNY [2]. Core Views - The company's revenue for the first half of 2024 reached 16.2 billion CNY, a year-on-year increase of 30.0%, while the net profit attributable to shareholders was 2.12 billion CNY, up 2.0% year-on-year [2]. - The electric vehicle (EV) business is entering a phase of realization, significantly contributing to profit growth, with sales revenue exceeding 6 billion CNY, representing over 100% year-on-year growth [2]. - The general automation business is facing short-term pressure due to the nearing end of the lithium battery and photovoltaic industry boom, with revenue of approximately 7.5 billion CNY, a year-on-year increase of about 10% [2]. Financial Summary - The company forecasts revenues of 36.7 billion CNY, 44.8 billion CNY, and 54.7 billion CNY for 2024, 2025, and 2026 respectively, with net profits of 5.52 billion CNY, 6.68 billion CNY, and 8.13 billion CNY for the same years [2][9]. - Earnings per share (EPS) are projected to be 2.06 CNY, 2.49 CNY, and 3.03 CNY for 2024, 2025, and 2026 respectively [2][9]. - The company’s gross margin is expected to be 33.5% in 2023, decreasing slightly to 32.8% in 2024 [9].