Inovance's products are mainly used in general automation, smart elevators, new energy vehicles, industrial robots and rail transit. In the field of general automation, Inovance's market share ranks high, of which the share of general servo system in the Chinese market is about 243%, ranking first. The share of low-voltage inverter products in the Chinese market is about 175%, ranking first. The share of small PLC products in the Chinese market is about 154%, in second place. The share of industrial robot products in the Chinese market is 702%, ranking sixth.
The first echelon of major manufacturers in the industrial automation market is Siemens, Emerson, ABB, Schneider, Rockwell, etc. The second echelon is Fluke, Freesto, Mitsubishi, AMETEK, Honeywell, etc. The third echelon is Omron, Phoenix, Yokogawa, Inovance, etc.
On January 30, 2024, Inovance released its 2023 performance forecast, with an expected operating income of 289900 million yuan-310600 million yuan, a year-on-year increase of 26% to 35%. The net profit attributable to the parent company was 457.9 billion yuan-496.8 billion yuan, a year-on-year increase of 6% to 15%. Net profit after deducting non-attributable to the parent company was 393.1 billion yuan-423.6 billion yuan, a year-on-year increase of 16% to 25%.
According to the performance forecast, Inovance's operating income in the fourth quarter is expected to be 886.9 billion yuan-1093.9 billion yuan, a year-on-year increase of 31% to 6165%。Net profit attributable to the parent is expected to be 12600 million to 164.9 billion yuan, a year-on-year increase of 202% to 3352%。Net profit after deducting non-attributable to the parent is expected to be 8$8.4 billion to $11900 million yuan, a year-on-year increase of 3414% to 8058%。Fourth-quarter results are expected to be significantly higher than the previous three quarters, and fourth-quarter results exceeded expectations.
Inovance's growth slowed in the first half of the year due to sluggish downstream demand. Since the third quarter, the growth of revenue and net profit has reversed. The larger-than-expected growth in revenue and net profit in the fourth quarter indicates that Inovance's performance has returned to high growth. At present, the downstream automation industry is already at the bottom of the cycle, benefiting from the rebound of the manufacturing industry, Inovance, as the leading enterprise of industrial automation, is expected to lead the industry back to high growth.