Inovance Technology (300124.SZ): Details Behind ~20% YoY Growth in Q3 2026 General Automation Orders (Citi)
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Inovance Technology (300124.SZ) shifted disclosure of general automation orders from monthly to quarterly from August 2026, aiming to steer investors toward long-term business development. The company disclosed that third-quarter 2026 general automation orders grew about 20% year over year, decelerating from roughly 40% in the second quarter, mainly due to a high base in Q3 2025 (particularly August) and slower battery-sector demand growth. Even so, September's year-over-year order growth improved from August, suggesting demand was better than feared.
Citi notes that electronics, semiconductor and AI-related automation demand remains strong and should persist, while battery-industry demand—recovering since late 2024—is expected to grow steadily. General automation has overtaken the NEV powertrain as Inovance's largest revenue source since Q1 2026. Mix-driven gross margin gains have offset NEV powertrain margin contraction, returning profitability to growth in Q2 2026.
Citi forecasts earnings growth of 22% year over year in Q3 2026, accelerating to 98% in Q4 on low-base effects, and it remains positive on continued profit recovery through the second half. Key checkpoints on battery demand include battery's ~10% share of general automation orders and Airtac's (1590.TW) monthly sales. Citi maintains Buy on Inovance with a RMB76.0 target price, and rates Airtac-KY (1590.TW) a 1 (Buy) with a NT$1,750 target.
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