Inovance(SZ:300124) Changjiang Securities·2024-03-04 16:00Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Viewpoints - The company is positioned to support the intelligent and digital transformation of the manufacturing industry, contributing to the development of new quality productivity through efforts in self-control, digitalization, and energy management [5][6]. - The company is a leader in industrial control, with significant market shares in domestic servo (31.7%), low-voltage frequency converters (15.1%), and small PLCs (15.2%), ranking first and second in the Chinese market [5][6]. - The company is actively promoting digital upgrades, focusing on digital factories, intelligent equipment, digital energy, and production management, which enhances product development efficiency and reduces delivery costs [6]. - The company is integrating intelligent and green energy development, leveraging its experience in power electronics and automation to provide comprehensive solutions that combine automation, digitalization, and energy management [6]. Summary by Sections Event Description - Recent articles in the Economic Daily highlighted the development of new quality productivity, emphasizing the importance of technological innovation and the need for self-control capabilities in key industrial chains [5]. Event Commentary - The report emphasizes that accelerating the formation of new quality productivity is essential for sustainable modernization in China, with a focus on technological breakthroughs and green development [5]. - The company is seen as a key player in promoting domestic substitution in critical industrial chains, particularly in the PLC market, where it aims to enhance its competitive edge [5][6]. - The company’s digital business strategy aims to provide cost-effective and easy-to-deploy digital solutions for industrial clients, which is expected to drive the digital transformation of the manufacturing sector [6]. Financial Projections - The company is projected to achieve net profits of 58.1 billion and 72.4 billion yuan in 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 29 and 24 times [6].