Eva Precision Industrial Holdings Limited (0838) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: 5.09%
• Average Volume (3M): 4.20M
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.74
• Revenue Growth: 0.51%
• EPS Growth: 3.74%
• Country: HK
• Employees: 10,087
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.08
• Shares Outstanding: 1,730,437,700
• 10 Day Avg. Volume: 4,122,200
• 30 Day Avg. Volume: 4,199,066
• PEG Ratio: 0.00
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 2.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): HK$6.97B

• Rating: 63 Neutral
• Price Target: HK$0.94 ▲(7.70% Upside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

The overall stock score is primarily influenced by the company's strong valuation, with a low P/E ratio and high dividend yield suggesting value and income potential. However, the technical analysis indicates bearish momentum, which could pose short-term risks. Financial performance is stable but hampered by inconsistent cash flow, necessitating attention to cash management.

Positive Factors

Consistent revenue growth

Steady top-line growth, even if modest, indicates ongoing demand and successful retention of customers. For a precision manufacturer, this consistency supports capacity planning, maintains supplier relationships, and underpins long-term contracts with OEMs, reducing revenue volatility over multi-quarter horizons.

Stable balance sheet and manageable leverage

A balanced capital structure with moderate leverage and a healthy equity cushion supports resilience during downturns and enables funding for capex or working capital. Positive ROE indicates efficient equity use, preserving financial flexibility for strategic investments over the next several months.

Strong gross margins and improving operating margins

Sustained gross margins and rising EBIT margin reflect effective cost controls and operational efficiency in precision manufacturing. These margin characteristics support competitive pricing, investment in R&D, and the ability to absorb input cost shocks, benefiting medium-term profitability sustainability.

Negative Factors

Inconsistent cash flow and no free cash flow in 2024

Absent free cash flow and volatile operating cash generation constrain the company's ability to self-fund capex, pay consistent dividends, or weather demand downturns. Reliance on external financing could raise costs or delay strategic investments, weakening financial resilience over months.

Modest net profit margin

A low net margin after decent gross margins suggests limited conversion of sales into retained earnings. This reduces the buffer against input cost inflation, limits reinvestment capacity, and makes long-term earnings more sensitive to operational disruptions or pricing pressure in OEM markets.

Exposure to cyclical end markets

Concentration in cyclical industries ties revenue to macro and sector cycles, creating structural demand variability. Automotive and industrial equipment cycles can produce multi-quarter order swings, complicating capacity utilization, working capital needs, and medium-term revenue visibility.

Eva Precision Industrial Holdings Limited Business Overview & Revenue Model

Company Description

EVA 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 Money

Eva Precision Industrial Holdings Limited generates revenue through the production and sale of precision-engineered components and assembly services. Key revenue streams include contracts with original equipment manufacturers (OEMs) in the automotive and electronics sectors, where the company supplies essential parts for various applications. The firm also benefits from long-term partnerships with clients, ensuring a steady flow of orders and potential for recurring revenue. Additionally, the company invests in research and development to innovate its product offerings, which helps in attracting new customers and expanding its market share. Factors contributing to its earnings include the demand for high-quality precision parts, efficiency in manufacturing processes, and the ability to adapt to changing market needs.

Eva Precision Industrial Holdings Limited Financial Statement Overview

Summary

Eva Precision Industrial Holdings Limited shows consistent revenue growth and stable profitability margins. The balance sheet is robust with a healthy equity position and manageable debt levels. However, inconsistent cash flow performance poses a potential risk, necessitating improved cash management strategies.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.35B	6.30B	6.18B	6.27B	5.11B	4.01B
Gross Profit	1.39B	1.38B	1.29B	1.15B	919.04M	656.26M
EBITDA	636.00M	622.21M	709.48M	555.96M	482.97M	281.01M
Net Income	250.62M	243.51M	237.09M	206.02M	155.19M	-15.37M
Balance Sheet
Total Assets	7.55B	7.47B	7.44B	7.26B	6.57B	6.10B
Cash, Cash Equivalents and Short-Term Investments	1.76B	1.74B	1.61B	1.76B	1.32B	1.44B
Total Debt	2.33B	2.37B	2.54B	2.55B	2.02B	1.99B
Total Liabilities	4.29B	4.33B	4.44B	4.42B	3.79B	3.49B
Stockholders Equity	3.26B	3.14B	3.00B	2.84B	2.79B	2.61B
Cash Flow
Free Cash Flow	347.24M	383.67M	-25.48M	27.60M	-116.67M	215.39M
Operating Cash Flow	715.21M	713.78M	375.15M	373.41M	259.59M	472.89M
Investing Cash Flow	-338.86M	-289.84M	-423.59M	-380.12M	-328.38M	-69.21M
Financing Cash Flow	-279.54M	-282.98M	-56.24M	414.52M	-18.43M	-79.66M

Eva Precision Industrial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0838, the sentiment is Negative. The current price of 0.87 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 0.88, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0838.

Eva Precision Industrial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3816	76 Outperform	HK$1.66B	2.76	7.82%	2.71%	28.78%	185.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0838	63 Neutral	HK$1.42B	2.31	7.83%	5.09%	0.51%	3.74%
1050	61 Neutral	HK$5.09B	11.95	18.58%	1.81%	10.34%	3.48%
0929	54 Neutral	HK$747.10M	55.00	0.57%	―	1.48%	12.50%
0255	53 Neutral	HK$900.12M	-59.57	0.40%	14.77%	-4.52%	―
0822	50 Neutral	HK$286.00M	-2.13	-4.33%	―	10.91%	11.01%

Eva Precision Industrial Holdings Limited Corporate Events

Eva Precision Subsidiary Secures HK$300 Million Term Loan Tied to Founder Control Covenants

Eva Precision Industrial Holdings Limited has announced that its indirect wholly owned subsidiary, Digit Technology Corporation Limited, has secured a term loan facility of up to HK$300 million from The Bank of East Asia, Limited, with a final maturity three years from the last drawdown. The facility is subject to specific performance obligations requiring controlling shareholders Zhang Hwo Jie and Zhang Yaohua to maintain at least 35% of the company’s issued share capital collectively and to remain in their roles as chairman and executive director respectively, with any breach constituting an event of default that could trigger cancellation of the facility and immediate repayment. These covenants underscore the bank’s reliance on the continued control and involvement of the founding shareholders and will be disclosed in future interim and annual reports for as long as they remain in force, highlighting the linkage between the company’s financing arrangements, ownership stability and leadership continuity.

The most recent analyst rating on (HK:0838) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Eva Precision Industrial Holdings Limited stock, see the HK:0838 Stock Forecast page.