A-share subscription | Inovance Automotive opens subscription, ranking first among third-party suppliers for 2024 electric control products

According to Zhitong Finance APP, on September 15, Inovance Automotive (301656.SZ) opened for subscription, with an issue price of 12.48 yuan per share, a subscription limit of 40,000 shares, and a price-to-earnings ratio of 32.87 times. It is listed on the Shenzhen Stock Exchange, with Guotai Junan as its sponsor. According to the prospectus, the company is committed to becoming a global leader in intelligent electric vehicle components and solutions, with main products including electric drive systems (electric control, motors, three-in-one/multi-in-one drive assemblies) and power systems (on-board chargers, DC/DC converters, two-in-one/three-in-one power assemblies) and other core components of power systems. The company is an industry leader in the power systems for new energy vehicles, positioned at the core of the industrial chain, bearing the important mission of promoting the high-quality development of China's automotive manufacturing industry. ① The company has repeatedly undertaken and participated in national key research and development plans and major technological projects, leading or participating in the formulation of more than 20 national standards, and leading the industry in breakthroughs in key technologies. ② The company provides power system solutions for more than 40 vehicle manufacturers and over 170 vehicle models, with a projected shipment of over 4.5 million power system products in 2024, deeply involved in vehicle design, power system development, vehicle production and sales ramp-up, and after-sales warranty throughout the entire lifecycle of new energy vehicles. ③ The company collaborates with upstream suppliers of integrated circuits, magnetic materials, equipment, etc., continuously innovating and upgrading in areas such as circuit design, material application, manufacturing processes, and software algorithms, committed to promoting the technological self-reliance and strength of China's intelligent electric vehicle industry chain. During the reporting period, the company's main customers included Li Auto, GAC Group, Chery Automobile, Xiaomi Automobile, and Geely Group. Since the State Council issued the "Twelfth Five-Year Plan for the Development of Electric Vehicle Technology" and other top-level planning policies in 2012, China has guided the rapid development of the new energy vehicle industry from multiple aspects including strategy, technological pathways, and financial support. Through years of continuous investment, domestic automotive enterprises and domestic power system suppliers have gradually achieved the localization of new energy vehicle power systems and the autonomy of core components, moving towards industrialization, scaling, and integration. In 2024, the market shares of domestic brand electric control and motors in China's electric drive market are expected to exceed 70% and 65%, respectively, with a clear path for the core components of new energy vehicles to overtake competitors. In the passenger vehicle sector, according to NE Times statistics, in the 2024 Chinese new energy passenger vehicle market, the company's electric control product share is approximately 10.7%, ranking first among third-party suppliers (second overall); the motor product share is approximately 10.5%, ranking first among third-party suppliers (second overall); the drive assembly product share is approximately 6.3%, ranking fourth; and the on-board charger product share is approximately 4.5%, ranking eighth. In the commercial vehicle sector, during the reporting period, the company mainly achieved large-scale sales of electric drive system-related products, with rapid revenue growth, maintaining a leading position in this segment. In terms of finance, for the fiscal years 2022, 2023, and 2024, the company achieved operating revenues of approximately 5.027 billion yuan, 9.365 billion yuan, and 16.178 billion yuan, respectively; during the same period, net profits were approximately -180 million yuan, 186 million yuan, and 936 million yuan, respectively