Inovance(300124) 海通证券·2024-10-31 04:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company achieved a revenue of 25.397 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 26.22%, while the net profit attributable to the parent company was 3.354 billion yuan, up 1.04% year-on-year [6] - The growth in revenue is primarily driven by the high growth in the new energy vehicle business, which saw an increase of approximately 96% year-on-year, reaching about 10.4 billion yuan [8] - The overall gross margin decreased by 4.76 percentage points year-on-year to 31.02%, attributed to changes in product sales structure and intensified market competition [6][10] Financial Performance Summary - For the third quarter of 2024, the company reported a revenue of 9.214 billion yuan, a year-on-year increase of 20.13%, with a gross margin of 29.69%, down 5.29 percentage points year-on-year [7][12] - The net profit for the third quarter was 1.236 billion yuan, showing a slight decline of 0.54% year-on-year [7] - The company’s expense ratio for the first three quarters of 2024 was 18.12%, down 2.19 percentage points year-on-year, with reductions in financial, management, research and development, and sales expense ratios [7] Future Outlook - The company is expected to maintain rapid growth in its new energy vehicle business as global penetration rates increase [10] - The general automation business showed slight growth, with revenue of approximately 10.9 billion yuan in the first three quarters, up about 4% year-on-year [10] - The company anticipates significant growth potential in its inverter, servo system, and PLC products due to trends in automation and intelligent manufacturing [10] Earnings Forecast and Valuation - The forecasted net profits for the company from 2024 to 2026 are 5.007 billion yuan, 5.904 billion yuan, and 7.037 billion yuan, respectively [11] - The estimated EPS for the same period is projected to be 1.87 yuan, 2.20 yuan, and 2.63 yuan [11] - Based on the company's leading position in the industrial control sector, a PE ratio of 30-35 is assigned for 2024, resulting in a target price range of 56.10 yuan to 65.45 yuan per share [11]