Inovance(300124) 华福证券·2024-10-31 01:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 67.24 CNY, indicating an expected increase of over 20% relative to the market benchmark index within the next six months [3][8]. Core Views - The company achieved a revenue of 25.4 billion CNY in the first three quarters, representing a year-on-year increase of 26.22%, while the net profit attributable to shareholders was 3.35 billion CNY, up 1.04% year-on-year [1]. - The growth in revenue is significantly supported by the explosive growth in the new energy vehicle sector, which saw a revenue increase of approximately 91% year-on-year in Q3 [2]. - The report highlights a structural decline in gross margin, primarily due to the increasing proportion of revenue from new energy vehicles, which affects profitability [1][2]. Summary by Sections Financial Performance - For Q3, the company reported a revenue of 9.21 billion CNY, a year-on-year increase of 20.13%, but a slight decline in net profit by 0.54% to 1.24 billion CNY [1]. - The gross margin for the first three quarters was 31.0%, down 4.8 percentage points year-on-year, while the net margin was 13.5%, down 3.2 percentage points [1]. Business Segments - General Automation: Q3 revenue was approximately 3.4 billion CNY, down about 8% year-on-year, affected by high base effects from solar and lithium battery sectors [2]. - New Energy Vehicles: Q3 revenue reached around 4.4 billion CNY, with significant contributions from major clients, maintaining a market share of 27.6% in commercial vehicles [2]. - Smart Elevators: Q3 revenue was about 1.3 billion CNY, down 12% year-on-year, with expectations to leverage structural opportunities in the service market [2]. - Rail Transit: Q3 revenue was approximately 120 million CNY, down about 29% year-on-year [2]. Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 4.92 billion CNY, 6.01 billion CNY, and 7.24 billion CNY, reflecting year-on-year growth rates of 4%, 22%, and 21% respectively [3].