Inovance(SZ:300124)2024-04-25 02:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock will outperform the benchmark index by more than 20% over the next 6-12 months [3][9]. Core Views - The company has shown steady growth in its performance, with revenue for 2023 reaching RMB 30.42 billion, a year-on-year increase of 32.21%, and a net profit attributable to shareholders of RMB 4.74 billion, up 9.77% year-on-year [2][5]. - The general automation sector remains a stronghold for the company, with revenue growth of 24.17% in 2023, supported by an increase in market share [2][3]. - The electric vehicle (EV) segment has entered a growth phase, with revenue growth of 78.69% in 2023, driven by increased sales volume and customer demand [2][3]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of RMB 30,420 million, with a growth rate of 32.2% compared to 2022 [3][5]. - The net profit attributable to shareholders for 2023 was RMB 4,742 million, reflecting a growth rate of 9.8% [3][5]. - The first quarter of 2024 showed a net profit of RMB 811 million, an increase of 8.56% year-on-year [2][6]. Business Segments - The general automation segment generated revenue of RMB 15,038 million in 2023, with a gross margin of 44.74% [2][3]. - The industrial robotics sector within general automation saw significant growth, with revenue increasing by 43% [2][3]. - The EV and rail transportation business reported a revenue increase of 78.69% in 2023, with sales volume rising by 126.18% [2][3]. Valuation - The earnings per share (EPS) estimates for 2024-2026 have been adjusted to RMB 2.07, RMB 2.46, and RMB 2.82, respectively, with corresponding price-to-earnings ratios of 28.6, 24.1, and 21.0 [2][3]. - The report indicates a strong outlook for the company's valuation based on its performance and market conditions [2][3].