Shenzhen Inovance: Annual Meeting Affirms Our View on Robots, EVs, and Automation Growth

We maintain our CNY 64 fair value estimate for narrow-moat Shenzhen Inovance after attending the company’s annual general meeting. Management maintained its 2023 revenue and profit growth outlook at 20%-40% and 10%-30%, respectively. It made qualitative comments on its strategy, which bolstered our confidence in the company’s ability to deliver a 21% revenue compound annual growth rate in the next five years. The stock appears fairly valued, but we think government stimulus on consumption could be Inovance’s upside catalyst as the company serves consumer goods manufacturers like packaging and garments.