As a leader in industrial automation, Inovance Technology is showing strong long-term growth potential by relying on the coordinated development of multiple tracks and domestic substitution.
Its current stock price is 71.07 yuan, with a total market value of 192.4 billion yuan. Many institutions have given it a “buy/overweight” rating, with an average target price of 82.3 yuan and a net profit forecast of 6.28 billion yuan in 2026.
From the core conclusion, 12 mainstream institutions including CITIC Securities and Huatai Securities have rated it, of which 8 are “buy”, 3 are “overweight” and 1 is “recommended”. The average target price implies about 15.8% room for growth.
The company has completed the triple jump from “single frequency converter manufacturer → general automation leader → new energy + robot two-wheel drive platform”, focusing on the three core businesses of industrial automation, new energy vehicles, and smart elevators, while also laying out strategic new tracks such as smart robots and digital energy.
In terms of performance, revenue in 2025 will be 45.105 billion yuan, a year-on-year increase of 21.77%, and net profit attributable to the parent company will be 5.050 billion yuan, a year-on-year increase of 17.84%, mainly due to the steady development of the industrial automation business, the increase in new energy vehicle power system products and the expansion of overseas markets.
Q1 performance in 2026 will increase steadily, with revenue of 10.143 billion yuan, a year-on-year increase of 12.98%, and net profit attributable to the parent company of 1.013 billion yuan. The main reasons are the continued increase in core business volume and the optimization of product structure.
The agency predicts that the average net profit attributable to the parent company in 2026 will be 6.28 billion yuan, corresponding to a PE of approximately 30.6 times. This reflects the market’s high recognition of its leading position, multi-track synergy advantages and domestic substitution opportunities.
The core business focuses on three major sectors, including industrial automation, new energy vehicles, and smart elevators.
In the field of industrial automation, the market share of servo systems, frequency converters and other products ranks among the top in the country; in the field of smart elevators, the market share of core products leads the industry; in the field of new energy vehicles, it is the third largest third-party supplier of new energy passenger vehicle power systems in the world and the largest in China, and the installed capacity of logistics vehicle motors ranks first.
At the same time, the company continues to increase its investment in R&D, with R&D expenses increasing by 35.23% year-on-year in 2025. Its strong technical strength provides strong support for business expansion.
From the financial report, in terms of revenue, there will be steady year-on-year growth in 2025, and Q1 of 2026 will also achieve year-on-year growth. It is expected that revenue in 2026 will increase to 54.8 billion yuan, a year-on-year increase of 21.5%.
In terms of profits, net profit attributable to the parent company will grow steadily year-on-year in 2025. Q1 profits in 2026 will remain stable, with a solid asset structure and strong risk resistance. The net cash flow from operating activities in 2025 will be 6.681 billion yuan, with abundant cash flow.
In terms of profitability, the comprehensive gross profit margin in 2025 will be 28.95%, a year-on-year increase of 0.25 percentage points. During the period, cost control has achieved good results, and R&D investment continues to promote the upgrading of products to high-end products.
In terms of business structure, a pattern of “industrial automation foundation building + new energy vehicle growth + smart elevator supplement” has been formed, and new tracks are being laid out at the same time.
In terms of industrial layout, it has deeply cultivated the domestic manufacturing market, accelerated its globalization layout, and increased investment in new tracks. It ranks fourth in the country in terms of industrial robot shipments, leads the layout of humanoid robot parts, and has a market share of 6.7% in the global high-power PCS energy storage market, ranking fifth in the world.
In terms of core competitiveness, the company has leading and technological advantages. It is the absolute leader in domestic industrial automation and has outstanding technical strength. In the field of industrial robots, SCARA robot products have a domestic market share of approximately 28%, ranking first.
With obvious product and customer advantages, a complete product matrix and high-quality customer resources, it has been recognized by first-class domestic and foreign OEMs in the field of new energy vehicles.
The growth engines mainly include domestic substitution, multi-track empowerment and globalization.
In terms of domestic substitution, imported products will gradually be replaced in the fields of industrial automation and new energy vehicle power systems.
In terms of multi-track empowerment, new energy vehicle power system products have increased in volume, new businesses have unleashed growth potential, and industrial automation business demand is strong.
In terms of globalization, overseas markets are the key expansion direction, driving the increase in global market share of products.
In terms of valuation, the current stock price corresponds to a PE of approximately 38.1 times in 2025, and a predicted PE of approximately 30.6 times in 2026, which is within a reasonable range for the industrial automation industry. As new businesses continue to increase in volume and profitability steadily increases, there is room for optimization in long-term valuation.
In terms of investment logic, the short-term performance is solid, the medium- and long-term growth space is broad, and the investment value is outstanding.
However, the company also faces some key risks, such as the recovery of the manufacturing industry is less than expected, competition in the new energy vehicle industry is intensifying, overseas market expansion is less than expected, the implementation of smart robots and digital energy businesses is slowing down, and raw material prices are fluctuating.
