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Eva Precision Industrial Holdings Limited (HK:0838)
:0838

Eva Precision Industrial Holdings Limited (0838) AI Stock Analysis

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HK

Eva Precision Industrial Holdings Limited

(Frankfurt:0838)

Rating:72Outperform
Price Target:
HK$1.00
▲(38.89%Upside)
Eva Precision Industrial Holdings Limited is rated at 72, driven by its strong valuation metrics and solid financial performance. While technical indicators show mixed signals, the valuation suggests significant upside potential. The lack of cash flow consistency is a notable risk, but overall, the company presents a compelling investment case.
Positive Factors
Business Expansion
Auto component business could accelerate with revenue expected to rise 12% as new business ramps up.
Revenue Growth
EVA’s auto parts business is on track to transform into a tier-1 supplier with more orders from OEMs to lift revenue.
Negative Factors
Financial Performance
Overall gross margin is projected to narrow by 0.7 percentage points due to stiffer competition and higher capital expenditures.

Eva Precision Industrial Holdings Limited (0838) vs. iShares MSCI Hong Kong ETF (EWH)

Eva Precision Industrial Holdings Limited Business Overview & Revenue Model

Company DescriptionEVA Precision Industrial Holdings Limited, an investment holding company, provides precision manufacturing services in the People's Republic of China, Vietnam, and Mexico. It operates in two segments, Office Automation Equipment and Automotive Component. The company engages in the design and fabrication of precision metal and plastic moulds; manufacture of precision metal and plastic components; lathing of metal components; and assembly of precision metal and plastic components into semi-finished products. In addition, the company trades in moulds and components; and develops properties. It serves the office automation equipment, automotive, and internet server industries. EVA Precision Industrial Holdings Limited was founded in 1993 and is headquartered in Kowloon, Hong Kong.
How the Company Makes MoneyEva Precision Industrial Holdings Limited generates revenue through the production and sale of precision components and molds, primarily serving industries such as office automation, automotive, and consumer electronics. The company's revenue model is based on manufacturing contracts and long-term relationships with major global clients, which include leading corporations in these sectors. By providing high-quality, reliable components that meet stringent industry standards, Eva Precision Industrial Holdings Limited secures repeat business and larger contracts. Additionally, the company invests in advanced manufacturing technologies and maintains a competitive edge through continuous innovation, ensuring a steady flow of income from its diverse and wide-ranging product offerings.

Eva Precision Industrial Holdings Limited Financial Statement Overview

Summary
Eva Precision Industrial Holdings Limited shows consistent revenue growth and strong profitability margins. The balance sheet indicates a healthy capital structure with manageable debt levels. However, cash flow performance is inconsistent, which poses a risk and requires better cash management.
Income Statement
75
Positive
Eva Precision Industrial Holdings Limited has demonstrated consistent revenue growth over the past years, with a 1.84% increase from 2023 to 2024. The gross profit margin remains strong at approximately 21.8% in 2024, indicating effective cost management. However, the net profit margin is modest at 3.87%, suggesting room for improvement in net profitability. The EBIT margin improved slightly to 5.92% in 2024, reflecting stable operational performance.
Balance Sheet
70
Positive
The company maintains a stable balance sheet with a debt-to-equity ratio of 0.75 in 2024, showing manageable leverage. The return on equity (ROE) is healthy at 7.75%, indicating efficient use of shareholders' equity. The equity ratio of 42.03% reflects a solid capital structure, providing a cushion against liabilities.
Cash Flow
60
Neutral
Cash flow performance has been mixed, with no free cash flow reported in 2024 due to a lack of operating cash flow and capital expenditure data. In previous years, free cash flow growth was inconsistent, and the operating cash flow to net income ratio was not calculable for 2024, highlighting potential volatility in cash generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.30B6.18B6.27B5.11B4.01B
Gross Profit
1.38B1.29B1.15B919.04M656.26M
EBIT
372.69M390.79M259.08M167.75M15.75M
EBITDA
622.21M709.48M555.96M482.97M281.01M
Net Income Common Stockholders
243.51M237.09M206.02M155.19M-15.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.74B1.61B1.83B1.42B1.53B
Total Assets
7.47B7.44B7.26B6.57B6.10B
Total Debt
2.37B2.54B2.55B2.02B1.99B
Net Debt
629.30M934.39M753.89M595.87M493.86M
Total Liabilities
4.33B4.44B4.42B3.79B3.49B
Stockholders Equity
3.14B3.00B2.84B2.79B2.61B
Cash FlowFree Cash Flow
383.67M-25.48M27.60M-116.67M215.39M
Operating Cash Flow
713.78M375.15M373.41M259.59M472.89M
Investing Cash Flow
-320.76M-388.74M-380.12M-328.38M-69.21M
Financing Cash Flow
-282.98M-56.24M414.52M-18.43M-79.66M

Eva Precision Industrial Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.72
Price Trends
50DMA
0.73
Negative
100DMA
0.69
Positive
200DMA
0.67
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
49.60
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0838, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.73, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0838.

Eva Precision Industrial Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€1.25B5.157.82%6.93%1.85%2.72%
65
Neutral
$4.46B12.185.23%249.77%4.11%-12.28%
$871.59M11.373.12%2.63%
$16.54M-128.01%
$3.72B11.515.29%10.05%
78
Outperform
HK$2.50B5.2349.10%7.64%3.11%-2.34%
73
Outperform
HK$735.75M2.952.91%4.54%-1.20%31.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0838
Eva Precision Industrial Holdings Limited
0.72
0.04
6.51%
SWDHF
Skyworth Digital Holdings
0.39
0.03
8.33%
CATWF
China Tontine Wines Group
0.07
0.00
0.00%
NWSZF
NWS Holdings
0.83
0.05
6.41%
HK:0898
Multifield International Holdings Limited
0.83
0.10
13.70%
HK:0331
FSE Lifestyle Services Limited
5.56
0.31
5.90%

Eva Precision Industrial Holdings Limited Corporate Events

Eva Precision Industrial Holdings Announces AGM Voting Results
May 20, 2025

Eva Precision Industrial Holdings Limited announced the results of its Annual General Meeting held on May 20, 2025, where all proposed resolutions were passed. Key resolutions included the re-election of directors, approval of financial statements, declaration of a final dividend, and granting of mandates for share allotment and repurchase. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

The most recent analyst rating on (HK:0838) stock is a Buy with a HK$1.40 price target. To see the full list of analyst forecasts on Eva Precision Industrial Holdings Limited stock, see the HK:0838 Stock Forecast page.

Eva Precision Industrial Holdings Announces AGM and Key Resolutions
Apr 23, 2025

Eva Precision Industrial Holdings Limited has announced its upcoming Annual General Meeting scheduled for May 20, 2025, in Hong Kong. The meeting will address several key agenda items, including the re-election of directors, approval of a final dividend for 2024, and the re-appointment of the auditor. Additionally, the company seeks approval for the directors to issue additional shares, which could impact the company’s capital structure and shareholder value.

EVA Precision Announces Share Repurchase Plan to Boost Shareholder Value
Apr 1, 2025

EVA Precision Industrial Holdings Limited has announced a voluntary share repurchase plan, approved by its board of directors, to buy back shares from the open market. The board believes the current trading price does not reflect the intrinsic value and business prospects of the company. The repurchase plan aims to enhance shareholder value and demonstrate the board’s confidence in the company’s future. The plan will be financed through internal resources and is subject to compliance with existing mandates and regulations.

EVA Precision Industrial Reports Stable 2024 Financial Results
Mar 28, 2025

EVA Precision Industrial Holdings Limited reported its audited financial results for the year ending December 31, 2024, showing a slight increase in revenue to HK$6,296,926,000 from the previous year. Despite a decrease in operating profit and profit before income tax, the company achieved a net profit of HK$243,507,000, reflecting a stable performance. The financial results indicate a resilient operational stance amidst market challenges, with implications for sustained stakeholder confidence.

Eva Precision Announces Final Dividend for 2024
Mar 28, 2025

Eva Precision Industrial Holdings Limited has announced a final cash dividend of HKD 0.02 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders and may positively impact investor confidence, as the dividend is set to be paid on June 12, 2025, following shareholder approval in May.

EVA Precision Industrial Announces Nomination Committee Change
Mar 28, 2025

EVA Precision Industrial Holdings Limited has announced a change in its nomination committee, appointing Ms. Ling Kit Sum as a member. This strategic move is expected to enhance the company’s governance and decision-making processes, potentially impacting its operational efficiency and stakeholder confidence positively.

Eva Precision Industrial Holdings Limited Establishes Nomination Committee Guidelines
Mar 28, 2025

Eva Precision Industrial Holdings Limited has outlined the terms of reference for its Nomination Committee, emphasizing the committee’s role in shaping the board’s composition and ensuring its alignment with the company’s strategic goals. The committee is tasked with responsibilities such as formulating nomination policies, reviewing board structure, and assessing the independence of directors, which are crucial for maintaining effective governance and supporting the company’s long-term objectives.

EVA Precision Industrial Holdings Announces Board Composition and Committees
Mar 28, 2025

EVA Precision Industrial Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of both executive and independent non-executive directors, with key figures including Zhang Hwo Jie as Chairman and Zhang Jian Hua as Vice Chairman. The company has also established three committees: Audit, Remuneration, and Nomination, each with designated members to oversee specific governance areas. This announcement underscores the company’s commitment to structured governance and transparency, potentially strengthening its market position and stakeholder confidence.

EVA Precision Announces Board Meeting for Year-End Results
Mar 18, 2025

EVA Precision Industrial Holdings Limited has announced a board meeting scheduled for March 28, 2025, to approve the final results for the year ending December 31, 2024, and to consider a final dividend. This meeting is crucial as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.