Inovance's Strong Start to 2025 Threatened by Tariffs

We think Shenzhen Inovance has a narrow moat driven by intangible assets and switching costs. Inovance established a reputation of being a reliable supplier by offering maintenance parts and comprehensive solutions over the lives of elevators. Elevator customers are sticky due to safety requirements, and programs behind elevator systems are tightly integrated with hardware. Inovance now offers a suite of cable, car, cord, and human machine interface products, fortifying its lead over local peers. Inovance has set up a factory in Hungary, which helps it strengthen its relationships with global elevator brands.