INVT releases its operating income of RMB884 million, net profit growth at 200% in the first half of this year.
Time of issue:2017-08-17
INVT releases its operating income of RMB884 million, net profit growth at 200% in the first half of this year.According to financial statements recently released by INVT, it has realized operating income of RMB884 million during the period from Jan. to Jun. 2017.Its operating income growing up 56% and net profit up 200%+ means a turning point is coming.
At the end of July, the preliminary earnings estimation released by INVT showed that it has realized operating income of RMB884 million during the period from Jan. to June 2017, with a year-on-year growth of 56.42%, while the operating income in the electric equipment industry grew 2.31% on average; the net profit attributable to the listed company’s shareholders is RMB90.9222 million, with a year-on-year growth of 227.82%, while the average growth of net profit in the electric equipment industry is 3.32%.
The operation turning point is coming.Net profit growth exceeds 200% in the first half of 2017.As an industrial controller manufacturer early listed, INVT is not a domestic leader in the mi- and low- voltage inverter, loom-specific servo system, modular UPS and autonomous rail transit traction system fields, among domestic top players in the electromobile motor controller field.Its operating income growing up 56% and net profit up 200%+ means a turning point is coming.In light of lower performance base at the second half of last year, the high growth is expected to continue at the second half this year.
By streamlining layout and highlighting main business, its net profit rate is expected to rise up.The net profit rate for past 6 years averaged on 10%, strikingly lower than peers’ 25%, the reason of which is about 10 business lines were rapidly expanded in the first 2 years when the company went to public listing by means of business acquisition and new establishment of subsidiaries. Except for the UPS business that was successful, the rest is in bad performance, which is cumbersome to overall performance.
From the beginning this year, the company began to phase out secondary businesses in bad performance and with low synergy, to focus attention on main business, its net profit rate is expected to approach the peers’ level.The outstanding performance of industrial controller sector (in which the shareholding percentage of EMC subsidiary declines to 20% from 77%) is not only because of excellent industry performance.The growth rate of industrial controller sector declined quarter by quarter from the 3rd quarter last year, the operating income growth approached 40% for the industrial controller sector in the first half 2017.In addition to excellent industry performance, the most important reason is attention shifted to solutions from standalone set selling, and organizational structure adjustment (i.e. the system department set up), which improved market shares while realized multiple-product mix sales.
Amazing results from traffic electrification & UPS power supply Apart from business partnerships with Yutong, Geely, Yinlong, Dongfeng and other industry giants, the electric control business of new energy vehicle maintains its exponential growth for consecutive many years. Owing to its high autonomy rate and the Guangzhou-Shenzhen geographic advantage, the rail transit traction system is hopeful to win its first order. While always keeping its high growth rate of about 40%, UPS power supply is expected to catch billion-worth orders in future 3 years by partnering with Guangzhou Zituo, an IDC operator.