Inovance(300124) 申万宏源·2024-10-30 02:09Investment Rating - Buy rating (首次覆盖) with a target price of 57 33 yuan [1] - The company's current PE ratio is 31x for 2024E, 27x for 2025E, and 22x for 2026E, lower than the industry average of 42x and 29x for 2024-2025 [6][9] Core Views - The company has grown from a single product supplier to a multi-industry, multi-level, and multi-product platform-based technology solution provider, covering four major business areas: general automation, smart elevators, new energy vehicles, and rail transit [4] - The company's revenue and net profit CAGR from 2011 to 2023 were 30% and 22%, respectively, demonstrating strong growth resilience [4] - The company initiated its internationalization strategy in 2022, with overseas markets expected to drive future growth [4] Business Segments General Automation - The general automation industry has long-term growth potential, and the company has continuously increased its market share in a highly competitive market dominated by foreign brands [4] - The company is expected to benefit from policy-driven demand recovery in the industry [4] - Revenue for the general automation business is projected to reach 173 66 billion yuan in 2024, with a gross margin of 44% [10] New Energy Vehicles - The company has been investing in new energy vehicle technology since 2009 and has achieved significant market share in motors, motor controllers, and electric drive systems (3 8%, 10 2%, and 5% respectively in 2023) [5] - The new energy vehicle business is expected to grow rapidly, with revenue projected to reach 163 78 billion yuan in 2024 [10] Smart Elevators - The elevator industry is relatively stable, with demand driven by old building renovations and replacement needs [5] - The company maintains a leading position in the industry, with revenue expected to reach 52 91 billion yuan in 2024 and a gross margin of 26% [10] Rail Transit - The company expanded into the rail transit sector in 2015 through the acquisition of Jiangsu Jingwei, focusing on traction drive systems [5] - The rail transit business is expected to grow steadily, with revenue projected to reach 5 78 billion yuan in 2024 [10] Financial Projections - The company's revenue is expected to grow from 39 812 billion yuan in 2024E to 63 354 billion yuan in 2026E, with a CAGR of 23 6% [7] - Net profit is projected to increase from 4 988 billion yuan in 2024E to 6 906 billion yuan in 2026E, with a CAGR of 19 3% [7] - The company's ROE is expected to remain stable at around 17 5% from 2024 to 2026 [7] Market Position and Competitive Advantages - The company has a leading market share in several key product categories, including 28 2% in general servo systems and 17 0% in low-voltage inverters [72] - The company's product portfolio is comprehensive, covering inverters, servo systems, PLCs, industrial robots, and more [74] - The company has successfully differentiated itself from foreign competitors by offering customized solutions and localized services [77] International Expansion - The company has accelerated its global expansion since 2022, with overseas revenue reaching 1 7 billion yuan in 2023, accounting for 5 7% of total revenue [54] - The company has established 18 subsidiaries and offices globally, with a strong presence in Southeast Asia, Europe, and the Americas [52]