Inovance(SZ:300124) Xinda Securities·2024-08-28 11:00Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's revenue for H1 2024 reached 16.183 billion yuan, a year-on-year increase of 29.98%, while the net profit attributable to the parent company was 2.118 billion yuan, up 1.98% year-on-year [2][3] - The company's new energy vehicle (NEV) business achieved sales revenue of approximately 6 billion yuan, with a year-on-year growth of over 100%, establishing itself as a leading player in China's NEV electric drive system market [3] - The company maintains a leading market share in the domestic industrial control market, with a general servo system market share of about 27.6% and a low-voltage inverter product share of approximately 19.6% [2][3] Financial Performance - The company's total revenue is projected to reach 23.008 billion yuan in 2024, with a year-on-year growth of 20.9%, and net profit attributable to the parent company is expected to be 4.32 billion yuan, reflecting a 14.3% increase [4] - The gross profit margin is forecasted to be 31.7% in 2024, slightly declining from previous years [4] - The company's earnings per share (EPS) is expected to be 1.64 yuan in 2024, with a P/E ratio of 42.38 [4] Market Position and Growth Potential - The company is well-positioned in the NEV sector, with significant capacity expansion underway, including the completion of projects in Changzhou and the ramp-up of production in Thailand and Hungary [3] - The company is expected to benefit from scale effects and capacity release, making the NEV business a key profit growth driver [3] - The company has identified numerous overseas business opportunities for domestic industrial clients, enhancing its international market presence [2][3]