Shenzhen Inovance Technology Co Ltd Class A
300124: XSHE (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥84.00 | Bvvmkd | Dpfqrshvzn |
Inovance’s Automation More Profitable Than Expected; EV Business Grows Stronger; Raise FVE to CNY 64
We lift our fair value estimate on narrow-moat Shenzhen Inovance to CNY 64 per share from CNY 60 after adjusting several noncore items and increasing 2022 gross margin estimate due to better-than-expected profitability in automation and industrial robots segments. The stock is trading at 34 times 2023 adjusted P/E. Inovance is fairly valued, in our view, but there are chances of overshoot if the Chinese government rolls out tangible policies to support consumption and investments.