Text: Yang Jianyong.
When it comes to industrial automation, I believe many people will think of Inovance, a company that has only been established for 20 years, and now it has become one of the domestic industrial control giants, with a market value of more than 160 billion yuan and a compound annual growth rate of 40% in revenue. At the same time, it is also known as "Industrial Control Little Huawei", and the main founding team members are mainly from Huawei, and then known as "Little Huawei" in the industry, with general automation (including industrial robots), smart elevators, new energy vehicles, and rail transit.
The leading position of industrial control is stable, with an annual revenue of more than 20 billion
In the past few years, under the influence of many factors, many business operations have been impacted. At the same time, the market demand of the industrial automation industry is also growing sluggishly. However, in the face of a complex environment, Inovance still maintained a steady growth pattern, and its revenue showed a strong growth trend in the past few years. From 7.4 billion in 2019, revenue will increase to 23 billion in 2022, an increase of 3 times, with a compound annual growth rate of 46%.
According to the disclosed data, the revenue scale of Inovance Technology has increased from 15.9 billion yuan, increasing to 23 billion yuan in 2022. In 15 years, its revenue has increased by 144 times. Such a growth rate is really rare in the entire A** field. And continue to maintain a steady growth pattern this year. In the first three quarters of 2023, the revenue revenue was 20.1 billion yuan, a year-on-year increase of 2389%；Net profit was 331.9 billion yuan, a year-on-year increase of 76%。
The rapid growth of revenue was mainly due to the rapid year-on-year growth of the new energy vehicle business, the rapid year-on-year growth of the general automation business, and the steady year-on-year growth of the smart elevator business. From January to September 2023, the new energy vehicle business achieved sales revenue of 526.8 billion yuan, a year-on-year increase of 61%, revenue accounted for 26%.
The revenue of the new energy vehicle business is contributed by three parts: new power car companies, domestic car companies (manufacturers that have transitioned from traditional vehicles to new energy vehicle business), and overseas car companies. It is worth mentioning that new energy vehicles will be spun off and listed independently, and the IPO is currently being promoted as usual, and it has been registered with the Jiangsu Securities Regulatory Bureau some time ago for the record.
The fundamentals are stable, and the general automation business still maintains rapid growth
It is worth noting that the industrial automation industry is still sluggish. According to the statistics of Rui Industry, the scale of China's industrial automation market in the first half of 2023 will be about 151.9 billion yuan, a year-on-year decrease of about 25%。However, the general automation business, as the foundation of Inovance, accounts for more than half of the revenue, and has grown rapidly in the past three years, maintaining a growth of 15-16% despite a high base and a bad external situation.
Among them, from January to September 2023, Inovance's revenue from general automation (including industrial robots) business was 1052.4 billion yuan, a year-on-year increase of 2042%, and 53% of revenue. At the performance briefing, it was said that the orders of the general automation business sector have maintained a rapid growth rate since May this year, which is supported by the good growth of many industries, including photovoltaic in the energy sector, air compressors, air conditioning and refrigeration, logistics and other industries in high-end manufacturing, and automotive equipment, semiconductors, food and beverage, woodworking and other industries in advanced manufacturing.
Inovance's products of small PLCs, medium-sized PLCs and intelligent controllers are still relatively rich, and they have grown rapidly in recent years, especially medium-sized PLCs and intelligent controllers. In terms of large-scale PLC, it is being laid out. At present, in the metallurgical and other process industries, mainly providing frequency converters, in the future, after the launch of large-scale PLCs, we will focus on the overall solution of the process industry.
In addition, according to the statistics of Rui Industry, in the first half of 2023, the market share of Inovance's general servo system in China will be about 243%, in first place;The share of low-voltage inverter products (including elevator special inverter) in the Chinese market is 175%, in first place;The share of small PLC products in the Chinese market is about 154%, ranking second and ranking first among domestic brands.
Industrial robot revenue 5500 million yuan, market share continued to increase
In the general automation business segment, Inovance's industrial robots contributed 5500 million yuan in revenue. In terms of industrial robots, Inovance claims that its advantages are reflected in the customer base of the company's industrial robot business and the field of general automation, which has good consistency and synergy, and uses the customer base and brand advantages to bring SCARA and six-joint robots into it.
According to Rui Industrial Data, the share of Inovance's industrial robot products in the Chinese market is 702%, ranked sixth;Among them, SCARA robots have a share of 22% in the Chinese market, ranking second and the first domestic brand. In addition, in the context of machine substitution and intelligent factory automation, Inovance's inverters, servo systems, PLCs, industrial robots and other products still have a lot of room for growth.
Finally
In the production process, the manufacturing industry continues to increase the level of digitalization, automation and intelligence, including the deployment of industrial robots, so as to improve production efficiency and steadily improve the development level of intelligent manufacturing. According to the data of Miri Rui Industry, in the second quarter of 2023, China's industrial robot market will be the first, with an overall sales volume of 6about 80,000 units, a year-on-year increase of 54%。
Among them, in the first half of 2023, domestic industrial robot brands withstood the pressure, and the overall growth rate reached 23%, much higher than the overall market growth rate of industrial robots in the first half of the year. It shows the acceleration of domestic substitution, and the market share of domestic manufacturers exceeded 40% for the first time, while Estun, Inovance, and EFORT three domestic manufacturers entered the global TOP10, firmly occupying a favorable position in the market competition and enjoying market dividends.
In addition, at the beginning of this year, the "Robot +" Application Action Implementation Plan issued by China proposed to develop an intelligent manufacturing system based on industrial robots to help the digital transformation and intelligent transformation of the manufacturing industry. The goal is to double the density of robots in the manufacturing industry by 2025 compared to 2020. In the context of manufacturing upgrading, as the digital transformation of the manufacturing industry continues to deepen, which drives the demand for industrial automation and industrial robots, it is expected that manufacturers on the track will continue to open up space for performance growth.
Yang Jianyong is a Forbes China contributor who provides insights into cutting-edge technologies such as the Internet of Things, cloud services, artificial intelligence, and smart homes.