Investment Summary
Revenue Grows Rapidly and Net Profits Increase Steadily in 2018
In 2018, Inovance Technology reported net profits of RMB1.167 billion attributable to
shareholders of the parent company, up 10.1% yoy, with EPS of RMB0.70 and dividends per
share of RMB0.2. The result is lower than our expectations, mainly because 1) domestic
macroeconomic downturn in the fourth quarter of last year affected downstream demand, 2)
new energy bus market in the reporting period is still affected by the policy adjustment. The
duration is longer than expected. However, by virtue of the Company`s competitive
advantages in many segments and the delivery of rail transit orders in the early stage, the
Company`s overall revenue still achieved rapid growth, with the annual revenue of
RMB5.874 billion, up by 23% yoy.