Inovance(300124) 华西证券·2024-09-03 04:03Investment Rating - The report assigns a "Buy" rating to the company, marking the first coverage with a target price based on the current market conditions [7][9]. Core Insights - The company reported a revenue of 16.18 billion yuan for the first half of 2024, reflecting a year-on-year increase of 30.0%, with a net profit of 2.12 billion yuan, up 2.0% year-on-year [2]. - The growth in revenue is primarily driven by the significant increase in the electric vehicle sector, which saw revenues exceeding 6 billion yuan, a growth of over 100% year-on-year [3]. - The general automation business also performed well, generating 7.52 billion yuan in revenue, a 10% increase year-on-year [3]. - The report highlights a slight decline in profitability, with a gross margin of 31.8%, down 4.5 percentage points year-on-year, attributed to lower downstream demand and a higher proportion of electric vehicle business [4]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 9.69 billion yuan, a year-on-year increase of 26.4% and a quarter-on-quarter increase of 49.3% [2]. - The net profit for Q2 was 1.31 billion yuan, showing a year-on-year decrease of 1.7% but a quarter-on-quarter increase of 61.1% [2]. Business Segments - Electric vehicle business revenue reached approximately 6 billion yuan, with a year-on-year growth exceeding 100% [3]. - General automation revenue was 7.52 billion yuan, reflecting a 10% year-on-year increase [3]. - Smart elevator revenue was 2.33 billion yuan, down 2% year-on-year, while rail transit revenue was 220 million yuan, up 8% year-on-year [3]. Profitability and Cost Management - The company’s gross margin for the first half of 2024 was 31.8%, down 4.5 percentage points year-on-year, with Q2 gross margin at 29.9%, down 6.3 percentage points year-on-year [4]. - The period expense ratio improved to 18.7%, down 2.4 percentage points year-on-year, with Q2 at 15.5%, down 3.1 percentage points year-on-year [4]. Future Outlook - The report anticipates revenue growth for 2024-2026, projecting revenues of 37.78 billion, 45.13 billion, and 54.35 billion yuan, representing year-on-year growth rates of 24%, 19%, and 20% respectively [6][12]. - Net profit forecasts for the same period are 5.12 billion, 6.26 billion, and 7.62 billion yuan, with expected growth rates of 8%, 22%, and 22% respectively [6][12].