\u3000\u3000 Shenzhen Inovance Technology Co.Ltd(300124) (300124)
Event: the company released the performance forecast for 2021, realizing a revenue of 16.11-18.42 billion yuan, a year-on-year increase of 40-60%; The net profit attributable to the parent company was 3.26-3.68 billion yuan, with a year-on-year increase of 55-75%. The net profit after deducting non recurring profit and loss was RMB 2.68-3.06 billion, with a year-on-year increase of 40-60%.
Comments:
The company’s business has achieved rapid growth. The growth of the company’s performance is mainly due to the effective implementation of the insurance supply and delivery strategy driven by the growth of downstream demand, the continuous effect of the company’s domestic industry leading brands, and the rapid growth of general automation business, new energy vehicle business and industrial Siasun Robot&Automation Co.Ltd(300024) business. Meanwhile, the impact of the company’s non recurring profit and loss on the company’s net profit in 2021 was about 580 million yuan (190 million yuan in the same period of last year), mainly due to the rapid growth of the fair value of overseas funds and the equivalent ratio of the fair value of derivative financial instruments.
The development of the company benefits from the upgrading of the manufacturing industry. The company’s business benefits from the upgrading of manufacturing industry. Since 2021, it has continuously improved its efficiency and management level, and is expected to continuously expand its business boundary. In the first three quarters, the general automation business achieved a revenue of 6.7 billion yuan, a year-on-year increase of 77%; The revenue of elevator electrical supporting business was 3.9 billion yuan, a year-on-year increase of 24%; Industrial Siasun Robot&Automation Co.Ltd(300024) achieved revenue of 290 million yuan, a year-on-year increase of 134%; The revenue of rail transit traction system was 440 million yuan, a year-on-year increase of 101%. All businesses are expected to continue to maintain good growth in 2022.
The new energy vehicle business is expected to continue to grow. The new energy vehicle business is another growth pole created by the company in recent years. In the first three quarters of 2021, the new energy vehicle electric drive and power supply system business achieved a revenue of 1.8 billion yuan, with a year-on-year increase of 182%. Driven by the growth of sales of core customers and Xiaopeng, the business segment is expected to continue to grow.
Profit forecast and investment rating: we expect the company’s revenue from 2021 to 2023 to be 17.73 billion yuan, 24.86 billion yuan and 32.08 billion yuan respectively, with a year-on-year increase of 54.0%, 40.2% and 29.0%; The net profit attributable to the parent company was 3.350 billion yuan, 4.398 billion yuan and 5.602 billion yuan respectively, with a year-on-year increase of 59.5%, 31.3% and 27.4%. The current share price corresponding to PE is 47.19, 35.95 and 28.22 times respectively, maintaining the “buy” rating.
Risk factors: the capacity expansion is less than expected, the industrial control demand is less than expected, and the profit brought by the intensification of market competition is less than expected.
