Recently, Inwitten, a leading automation solution provider, was investigated by a number of funds and securities institutions. It is understood that the company was founded in 2002, the initial mainly engaged in the development and sales of industrial automation products, and then extended to the field of network energy, new energy vehicles and light storage.

Industrial automation, data center companies are the main source of revenue

At the beginning of the year, the latest performance forecast released by Yingweiteng shows that the operating income of this 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 earn 260 million yuan to 300 million yuan, and the net profit increased by 43.00% to 65.00%.

Shanxi Securities analysis said that industrial automation and data centers are currently the company’s main sources of income, and continue to benefit from the growth of the industry, of which industrial automation business accounted for more than 60%, and low-voltage inverter accounted for the main share of industrial automation; Light storage and new energy vehicles are growth businesses, which have accelerated expansion in recent years, and are expected to improve their profitability and continue to contribute to the company’s performance growth.

1) In terms of industrial automation, the scale of China’s low-voltage inverter market has increased year by year, reaching 43.66 billion yuan in 2021, an increase of 9.06%. The company’s low-voltage inverter in the domestic brand market share leading, the future will focus on servo, PLC to promote industry solutions and new products, continue to improve the core competitiveness of servo, PLC, maintain stable growth;

2) In terms of data centers, it is expected that the market size of China’s room air conditioning and UPS will reach 105.8 billion yuan and 14.54 billion yuan respectively in 2024, with a compound growth rate of 14.5% and 19.7% in the past three years, respectively. The company focuses on the research and development, production and application of integrated solutions for modular UPS and data center critical infrastructure, which is expected to continue to benefit.

In the petroleum industry, it is currently used in major links such as oil drilling, crude oil exploitation, oil and gas transportation, refining and processing, and has close cooperation with major domestic oil companies. For example, in the oil field, Inwitten provides customers with an overall solution: PLC+ Inwitten GD5000 inverter +MOXA gateway + external inspection, which can help the domestic maximum horsepower electric drive fracturing sled, and 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, at the end of February, Inwitten announced that its wholly-owned subsidiary Suzhou Company (hereinafter referred to as “Suzhou Company”) and Suzhou Science and Technology City Management Committee signed a “Letter of Strategic cooperation”, intending to invest a total of about 1.05 billion yuan in Suzhou High-tech Zone Science and Technology City, the construction of Inwitten Suzhou Industrial Park Phase III project. It is used to build intelligent production plants and supporting facilities, expand high-end motor product lines, intelligent manufacturing control module and system integration product lines, integrated circuit product lines and other projects.

Growth businesses take advantage of the trend and contribute to the high growth of the company

New energy vehicles and optical storage are the growth businesses of the company. The company’s photovoltaic products focus on the distributed market, including grid-connected inverters, off-grid inverters, energy storage inverters and terminal accessories, which can be used for grid integration and grid-connected; The new energy vehicle business is currently dominated by commercial vehicles, and there will also be a breakthrough in passenger cars in 2022.

1) In terms of optical storage, inverters account for about 10% of the cost of photovoltaic power stations, which is one of the key components of photovoltaic power stations. Under the background of the continuous high growth of photovoltaic industry and the export price advantage of domestic inverters, the company has established a channel network covering many countries around the world, and the products are constantly iterated, and the subsidiary companies are increased to continue to increase the photovoltaic business. The operating income of 22H1’s light storage business increased by 167% year on year;

In 2022, the proportion of domestic and overseas PV business of Inwitten will be seven and three, and it will reach five and five in January and February this year, and the main sales model is the combination of project sales and OEM sales. Inwitten has its own warehouse in some overseas countries, which can realize fast distribution; At the same time, promote the localization of overseas countries and respond to customer needs in the first time.

2) In terms of new energy vehicles, the company’s commercial vehicle revenue accounts for a relatively large proportion, and in 2022, the passenger car project has been broken through and ordered in bulk. Under the background of policy support and the popularization of the “car-electric separation” power replacement model, new energy commercial vehicles are expected to usher in an industry outbreak period in the next three years, according to relevant data of Sullivan. It is expected that the sales volume of domestic new energy commercial vehicles will grow to 1.443 million in 2026, with a compound growth rate of about 51.1% from 2020 to 2026, and the rapid development of the industry is expected to drive the rapid expansion of the company’s business.