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Eva Precision Industrial Holdings Limited (HK:0838)
:0838
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Eva Precision Industrial Holdings Limited
(0838)
Select Model
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Rating:63Neutral
Price Target:
HK$0.94
▲(7.70% Upside)
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
Sustained topline expansion and a healthy gross margin indicate the company can retain pricing power and manage production costs. Over 2–6 months this supports stable order books, underwriting reinvestment and incremental profit improvement despite cyclical demand swings.
Stable balance sheet
A moderate leverage profile and solid equity cushion give the company financial flexibility to fund working capital and capex without excessive refinancing risk. This durable capital structure supports resilience through cyclical downturns and strategic investments.
OEM contracts and R&D focus
Recurring contracts with OEMs and ongoing R&D create durable revenue streams and product differentiation. Long-term client relationships lower customer acquisition risk and recurring orders smooth revenue volatility while R&D helps sustain competitiveness.
Negative Factors
Cash flow inconsistency
Absent and volatile operating cash generation undermines the firm's ability to self-fund capex, pay dividends or build reserves. Over months this elevates refinancing and liquidity risk, forcing dependence on external funding for growth or working capital spikes.
Modest net profitability
Low net margins limit retained earnings and buffer against cost shocks. In manufacturing, narrow profitability reduces capacity to invest in automation or R&D, and compresses returns to shareholders, making long-term margin expansion necessary for durable value creation.
Exposure to cyclical end markets
Concentration in cyclical industries ties revenue and margin performance to broader macro cycles. Over a multi-month horizon, demand swings in autos and electronics can create order volatility and working capital pressure, raising earnings unpredictability.
Eva Precision Industrial Holdings Limited (0838) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.54B
Dividend Yield5.09%
Average Volume (3M)4.20M
Price to Earnings (P/E)6.2
Beta (1Y)0.73
Revenue Growth0.51%
EPS Growth3.74%
CountryHK
Employees10,087
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,730,437,700
10 Day Avg. Volume4,122,200
30 Day Avg. Volume4,199,066
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.37
Price to Sales (P/S)0.18
P/FCF Ratio2.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.24
Revenue Forecast (FY)HK$51.46B
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-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 strong with a healthy equity position and manageable debt levels. However, inconsistent cash flow performance indicates potential volatility, 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.75
Positive
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.70
Positive
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.60
Neutral
| 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
Neutral
0.87
Price Trends
0.94
Negative
1.03
Negative
0.88
Positive
Market Momentum
-0.01
Negative
49.96
Neutral
80.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0838, the sentiment is Neutral. The current price of 0.87 is above the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.94, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0838.
Eva Precision Industrial Holdings Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$5.05B | 24.70 | 19.09% | 1.81% | 10.34% | 3.48% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$1.54B | 6.16 | 8.13% | 5.09% | 0.51% | 3.74% | |
60 Neutral | HK$276.00M | 6.22 | 7.82% | 2.71% | 28.78% | 185.71% | |
54 Neutral | HK$820.76M | 78.79 | 0.57% | ― | 1.48% | 12.50% | |
53 Neutral | HK$900.12M | 133.96 | 0.40% | 14.77% | -4.52% | ― | |
50 Neutral | HK$335.16M | -6.63 | -4.46% | ― | 10.91% | 11.01% |
* Industrials Sector Average
HK:0838
Eva Precision Industrial Holdings Limited
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.