Inventronics highest pre-earnings of 170 million last year

In the evening of January 24, Inventronics released a performance forecast. It is expected that the net profit in 2020 will be about 149 million RMB to 170 million RMB, an increase of 40%-60% year-on-year; non-net profit deducted from 128 million RMB to 145 million RMB, an increase of 50% year-on-year %-70%. This benefits from the company's development of new products and emerging application markets and optimization of its internal management system.

In addition, the Yangtze River Commercial Daily reporter noted that in the world's first echelon in the field of LED drive power, Inventronics is accelerating its global market expansion. In 2020, the company has successfully put into production two overseas factories in Asia-Pacific India and North America and Mexico. The proportion of revenue in North America has increased for three consecutive years. In the first half of 2020, the revenue will be 95,049,600 RMB, which will increase the proportion of total revenue to 23.18%.

Gross profit margin returned to 39% in the first three quarters

After ups and downs, Inventronics will achieve a significant increase in performance in 2020.

Financial data shows that in 2011, the company's net profit reached 29.95 million RMB, with a gross profit margin of 42.11%, and then fluctuated all the way. In 2013 and 2015, the net profit exceeded 90 million RMB. Since then, due to the sharp increase in raw material prices and the expansion of new energy vehicles and off-board charging products, the net profit in 2017 was only 25.02 million RMB.

However, the early investment has also ushered in returns. From 2018 to the first three quarters of 2020, the company achieved net profits of 70.28 million RMB, 106 million RMB and 75.87 million RMB respectively.

During the period, the company's revenue rose steadily. In 2011, the company's operating income was only 156 million RMB, which increased to 1.01 billion RMB in 2019, with an eight-year compound growth rate of 26.3%.

In 2020, the company expects to achieve a net profit of approximately 149 million RMB to 170 million RMB, an increase of 40%-60% year-on-year; non-net profit deducts 128 million to 145 million RMB, an increase of 50%-70% year-on-year.

Regarding the reasons for the growth in performance, Inventronics stated that in 2020, the company will actively adjust its business strategy when its production and operation activities are affected by the epidemic, strengthen domestic and foreign market expansion, new business and key customer development, and release the accumulation of past business projects under the pressure of the epidemic, the operating income of the LED driving power supply business has increased compared with the same period last year. At the same time, the company's new energy vehicle charging facilities related business market has been expanding smoothly, and operating income has increased significantly compared with the same period last year.

Specifically, in 2020, in the field of LED lighting drive, Inventronics has completed the EAM-100/150 driver series that meets the Indian EESL standard, the EUM-200 LG series that meets the T/CSA051 standard, and the EUM-240 that meets the DALI2 standard. BG series, ESM-240 DG series with high voltage input, 400W rainproof power supply with PF value control, used in North American indoor drive LUN-095 series, compatible with 0-10V and DALI-2 & D4i controllers and other projects.

In addition, the company is also actively developing emerging application markets, launching power products for sports lighting, plant lighting, explosion-proof lighting, fire lighting, fishery lighting, security monitoring, UV LED and other emerging applications. In the field of charging products for new energy vehicles, the company has launched a lithium battery equalizer product used in switching stations.

Thanks to this, in the first half of 2020, the company's high-power product capacity utilization rate rose to 88.12%. In the first three quarters of 2020, the company's comprehensive gross profit margin recovered to 39.09%. In 2018 and 2019, its gross profit margin was 33.53% and 37.5% respectively.

The proportion of North American market revenue has increased for three consecutive years

Public information shows that since its establishment in 2007, Inventronics has been focusing on the R&D and production of LED driving power supplies. It has now ranked first in the world in this field. The main international competitors are MEAN WELL and Philips.

For this reason, Inventronics has continued to expand the global market in recent years. At present, Inventronics' sales area covers more than 80 countries and regions in the world including China, North America, Europe, Japan and South Korea, South America, Southeast Asia, and the Middle East, and has established subsidiaries in the United States, Europe, India, and Mexico; established in the European and American markets Established an independent marketing and service network; established offices in Korea, Singapore, and Italy.

In order to continue to promote its global development strategy, Inventronics will set up overseas factories in Mexico and India in 2019 to meet orders in North America, the Middle East, Africa, and India respectively.

From the perspective of regional revenue, from 2017 to the first half of 2020, the company's North American region achieved revenues of 76,936,900 RMB, 174 million, 219 million, and 95,049,600 RMB respectively, accounting for 10.08%, 18.04%, and 10.08% of total revenue. 21.68%, 23.18%, the proportion of regional income increased for three consecutive years.

In addition, in the first half of 2020, the Indian factory has achieved localized production and shipment. Benefiting from this, in the first half of 2020, the company's revenue in the Asia-Pacific region reached 41.7201 million RMB, which increased from 10.17% in 2019 to 10.18%.

Inventronics stated that in 2020, the company successfully put into production two overseas factories in Asia-Pacific India and North America and Mexico, which has realized capacity backup for the company's further global development layout and business expansion, and further enhanced customer confidence and stickiness.

The demand for emerging applications of LED drive power also brings new opportunities for Inventronics' performance growth. Especially with the recent rise of plant lighting, the vigorous development of indoor vegetable and fruit planting in some countries in the North American market makes plant lighting a rapidly growing field in the next few years, and the market volume is huge.