Recently, INVT, a leading automation solution provider, has been surveyed by a number of funds and securities institutions. It is understood that the company was established in 2002. At the beginning, it was mainly engaged in the research and development and sales of Industrial automation products, and later extended to the fields of network energy, new energy vehicles, and optical storage.
Main sources of revenue for industrial automation and data center companies
At the beginning of the year, the latest performance forecast released by INVT showed that the operating income during the reporting period is expected to achieve 4.1 billion, an increase of about 37% over the same period last year, and the net profit attributable to shareholders of listed companies is expected to be 260 million to 300 million yuan. An increase of 43.00%-65.00%.
According to Shanxi Securities analysis, industrial automation and data centers are currently the company’s main source of income and continue to benefit from industry growth. Among them, industrial automation business accounts for more than 60%, and low-voltage inverters account for the main share of industrial automation; optical storage and new energy vehicles As a growth business, it has accelerated its expansion in recent years, and its profitability is expected to improve, which will continue to contribute to the growth of the company’s performance.
1) In terms of industrial automation, the scale of China’s low-voltage inverter market is increasing year by year, reaching 43.66 billion yuan in 2021, a year-on-year increase of 9.06%. The company’s low-voltage inverter has a leading market share among domestic brands. In the future, it will focus on promoting industry solutions and new products for servo and PLC, continue to improve the core competitiveness of servo and PLC, and maintain stable growth;
2) In terms of data centers, it is estimated that the market size of China’s computer room air conditioners and UPS will reach 10.58 billion and 14.54 billion yuan respectively in 2024, and the compound growth rates in the past three years will reach 14.5% and 19.7% respectively. The company focuses on the key foundation of modular UPS and data centers The development, production and application of facility integration solutions are expected to continue to benefit.
In the oil industry, it is currently used in major links such as oil drilling, crude oil extraction, oil and gas transportation, refining and processing, and has close cooperation with major domestic oil companies. For example, in the oil field, INVT provides customers with an overall solution: PLC + INVT GD5000 inverter + MOXA gateway + external detection, which can help the largest horsepower electric drive fracturing skid in China. The above applications have been well evaluated and recognized by customers.
In order to meet the needs of the continuous expansion of the company’s business scale, INVT announced at the end of February that its wholly-owned subsidiary Suzhou Company (hereinafter referred to as “Suzhou Company”) signed a “Strategic Cooperation Letter of Intent” with the Management Committee of Suzhou Science and Technology City. The total investment in the science and technology city is about 1.05 billion yuan, and the third phase of the INVT Suzhou Industrial Park will be built, which will be used to build intelligent production plants and supporting facilities, expand high-end motor product lines, intelligent manufacturing control modules and system integration product lines, and integrated circuit products line etc.
Growth-oriented businesses take advantage of the momentum and contribute to the company’s high growth
New energy vehicles and optical storage are growth businesses of the company. The company’s photovoltaic products focus on the distributed market. The products cover grid-connected inverters, off-grid inverters, energy storage inverters and terminal accessories, which can be used for network collection and grid connection; the new energy vehicle business currently focuses on commercial vehicles. Mainly, there will also be breakthroughs in passenger cars in 2022.
1) In terms of photovoltaic storage, inverters account for about 10% of the cost of photovoltaic power plants, and are one of the key components of photovoltaic power plants. Against the background of the continued high growth of the photovoltaic industry and the export price advantage of domestic inverters, the company has established a global Channel network in multiple countries, continuous product iterations, capital increase in subsidiaries, and continued increase in photovoltaic business. In 22H1, the operating income of the company’s solar storage business increased by 167% year-on-year;
In 2022, INVT’s photovoltaic business will account for 70% or 30% domestic and overseas sales, and it will reach 50% to 50% in January-February this year. The main sales model is a combination of project-based sales and OEM sales. INVT has its own warehousing in some overseas countries, which can realize fast delivery; at the same time, it promotes localized services in overseas countries and responds to customer needs in the first time.
2) In terms of new energy vehicles, the company’s commercial vehicle revenue accounts for a large proportion. In 2022, it will break through the fixed point of the passenger car project and obtain orders in batches. Commercial vehicles are expected to usher in an explosive period in the industry in the next three years. According to relevant data from Sullivan, it is estimated that the sales of new energy commercial vehicles in China will increase to 1.443 million in 2026, with a compound growth rate of about 51.1% from 2020 to 2026. The rapid development of the industry is expected Drive the rapid expansion of the company’s business.
INVT’s new energy vehicle business mainly invests in the research and development of the new energy vehicle power domain industry and realizes mass production. The product market space has a positive relationship with the increase in the penetration rate of the new energy vehicle market. The company grasps the trend of electrification and hybridization, increases investment in research and development, and continuously improves the product layout in high-barrier products. The future market space is huge.
The company’s network energy business green power solution has been widely used in the medical field, and has successfully served hundreds of well-known hospitals such as Beijing Tiantan Hospital, Shenzhen Third People’s Hospital, Guangzhou Eighth People’s Hospital, Chongqing Children’s Hospital, and Foshan Second People’s Hospital. Hospitals have launched power supply and distribution solutions for medical equipment power supply fields, hospital data centers, and various department areas, escorting the normal operation of various precision medical equipment and the efficient development of various businesses in the hospital.