Inovance(300124) 东吴证券·2025-01-03 08:12Investment Rating - Buy (maintained) [1] Core Views - The subsidiary United Power's IPO has been accepted by the Shenzhen Stock Exchange, aiming to raise 4.86 billion yuan for projects including "New Energy Vehicle Core Component Production Construction" [7] - United Power's revenue has shown significant growth, with a CAGR of 80% from 2021 to 2023, and its contribution to Huichuan Technology's revenue increased from 16% in 2021 to 41% in 24Q1-3 [7] - United Power's product structure includes multi-level components, with system-level, component-level, and module-level products developing rapidly, accounting for 85% and 15% of revenue respectively in 24H1 [7] - United Power's market share in domestic third-party electric control products is about 11%, ranking first, and its share in drive assembly, motor, and OBC markets ranks 4th, 5th, and 8th respectively [7] - United Power's profitability has improved significantly after turning losses into profits, with a net profit margin of 4.7% in 24H1, and its future net profit margin is expected to rise due to platformization and scale effects [7] - United Power's customer base includes major domestic and international automakers, with new models from companies like Li Auto, Xiaomi, Chery, and GAC expected to contribute to future revenue growth [7] - United Power's total assets and net assets have grown steadily, with a debt ratio showing a positive trend [7] - Huichuan Technology's revenue and net profit are expected to grow steadily, with projected revenue of 37.56 billion yuan in 2024 and net profit of 5.03 billion yuan, maintaining a "Buy" rating with a target price of 78.1 yuan [7] Financial Forecasts - Revenue is expected to grow from 30.42 billion yuan in 2023 to 54.59 billion yuan in 2026, with a CAGR of 18.49% [1] - Net profit attributable to the parent company is expected to grow from 4.74 billion yuan in 2023 to 7.18 billion yuan in 2026, with a CAGR of 19.39% [1] - EPS is projected to increase from 1.76 yuan in 2023 to 2.67 yuan in 2026 [1] - P/E ratio is expected to decrease from 31.96 in 2023 to 21.12 in 2026 [1] - Gross margin is expected to remain stable around 29-30% from 2024 to 2026 [8] - ROE is projected to remain around 18% from 2024 to 2026 [8] Market Data - Closing price: 56.30 yuan [5] - One-year low/high price: 39.17/74.94 yuan [5] - P/B ratio: 5.70 [5] - Market capitalization: 151.57 billion yuan [5] Fundamental Data - Net asset per share: 9.88 yuan [6] - Asset-liability ratio: 49.29% [6] - Total shares: 2.69 billion [6] - Circulating A shares: 2.28 billion [6]