SEHK:838

Stock Analysis Report

EVA Precision Industrial Holdings

Executive Summary

EVA Precision Industrial Holdings Limited, an investment holding company, provides precision manufacturing services in the People’s Republic of China and Vietnam.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has EVA Precision Industrial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 838 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.2%

838

-0.05%

HK Machinery

-1.4%

HK Market


1 Year Return

-20.8%

838

32.8%

HK Machinery

3.5%

HK Market

Return vs Industry: 838 underperformed the Hong Kong Machinery industry which returned 35% over the past year.

Return vs Market: 838 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

838IndustryMarket
7 Day5.2%-0.05%-1.4%
30 Day3.4%3.7%1.8%
90 Day-3.2%16.8%6.0%
1 Year-19.4%-20.8%36.7%32.8%7.3%3.5%
3 Year-37.4%-40.8%66.0%55.5%23.3%10.8%
5 Year-63.3%-66.7%57.7%44.4%19.2%-0.7%

Price Volatility Vs. Market

How volatile is EVA Precision Industrial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EVA Precision Industrial Holdings undervalued compared to its fair value and its price relative to the market?

14.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 838 (HK$0.59) is trading above our estimate of fair value (HK$0.15)

Significantly Below Fair Value: 838 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 838 is poor value based on its PE Ratio (14.2x) compared to the Machinery industry average (11.3x).

PE vs Market: 838 is poor value based on its PE Ratio (14.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 838's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 838 is good value based on its PB Ratio (0.4x) compared to the HK Machinery industry average (1.1x).


Next Steps

Future Growth

How is EVA Precision Industrial Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as EVA Precision Industrial Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has EVA Precision Industrial Holdings performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 838 has high quality earnings.

Growing Profit Margin: 838's current net profit margins (1.9%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: 838's earnings have declined by -24.8% per year over the past 5 years.

Accelerating Growth: 838's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 838 had negative earnings growth (-31.4%) over the past year, making it difficult to compare to the Machinery industry average (7.3%).


Return on Equity

High ROE: 838's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EVA Precision Industrial Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 838's short term assets (HK$3.1B) exceed its short term liabilities (HK$2.4B).

Long Term Liabilities: 838's short term assets (HK$3.1B) exceed its long term liabilities (HK$845.3M).


Debt to Equity History and Analysis

Debt Level: 838's debt to equity ratio (75.7%) is considered high.

Reducing Debt: 838's debt to equity ratio has increased from 56.3% to 75.7% over the past 5 years.

Debt Coverage: 838's debt is well covered by operating cash flow (20.7%).

Interest Coverage: 838's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: 838 has a high level of physical assets or inventory.

Debt Coverage by Assets: 838's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is EVA Precision Industrial Holdings's current dividend yield, its reliability and sustainability?

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.2%markettop25%6.1%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 838's dividend (2.1%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 838's dividend (2.14%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 838's dividend payments have been volatile in the past 10 years.

Growing Dividend: 838's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 838's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of EVA Precision Industrial Holdings's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Yaohua Zhang (47yo)

0yrs

Tenure

HK$10,439,000

Compensation

Mr. Yaohua Zhang co-founded Eva Precision Industrial Holdings Ltd., and served as its Chief Executive Officer. Mr. Zhang is responsible for the overall strategic planning and the operation and project deve ...


CEO Compensation Analysis

Compensation vs Market: Yaohua's total compensation ($USD1.34M) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Yaohua's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.0yrs

Average Tenure

47yo

Average Age

Experienced Management: 838's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

14.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 838's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$352,90205 Jun 19
Yaohua Zhang
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares500,000
Max PriceHK$0.71
SellHK$471,50015 Mar 19
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares548,000
Max PriceHK$0.86

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Francis Wong (47yo)

    CFO & Company Secretary

    • Yaohua Zhang (47yo)

      Co-Founder

      • Compensation: HK$10.44m
    • Hwo Jie Zhang (56yo)

      Co-Founder & Executive Chairman

      • Compensation: HK$10.44m
    • Jian Zhang (45yo)

      Co-Founder & Vice Chairman

      • Tenure: 14.3yrs
      • Compensation: HK$10.44m
    • Lei Song (45yo)

      President of the Group Electronic Business

      • Tenure: 4.2yrs
    • Xiao Feng Hu (49yo)

      Vice President of the Group's Operational Management Centre

      • Wen Cheng Liu (49yo)

        Chief Strategic Officer

        • Tenure: 7.8yrs
      • Bin Li (46yo)

        Vice President of Group's Corporate Management Centre

        • Tenure: 4.2yrs
      • Ji Wei Lu (44yo)

        Vice President of the Group's Sales Management Centre


        Board Members

        • Tak Choy (90yo)

          Independent Non Executive Director

          • Tenure: 15yrs
          • Compensation: HK$230.00k
        • Hiu Lam (57yo)

          Independent Non-Executive Director

          • Tenure: 7yrs
          • Compensation: HK$230.00k
        • Yaohua Zhang (47yo)

          Co-Founder

          • Compensation: HK$10.44m
        • Hwo Jie Zhang (56yo)

          Co-Founder & Executive Chairman

          • Compensation: HK$10.44m
        • Jian Zhang (45yo)

          Co-Founder & Vice Chairman

          • Tenure: 14.3yrs
          • Compensation: HK$10.44m
        • Tai Chiu Leung (73yo)

          Independent Non Executive Director

          • Tenure: 13.6yrs
          • Compensation: HK$230.00k

        Company Information

        EVA Precision Industrial Holdings Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: EVA Precision Industrial Holdings Limited
        • Ticker: 838
        • Exchange: SEHK
        • Founded: 1993
        • Industry: Industrial Machinery
        • Sector: Capital Goods
        • Market Cap: HK$1.064b
        • Shares outstanding: 1.72b
        • Website: https://www.eva-group.com

        Number of Employees


        Location

        • EVA Precision Industrial Holdings Limited
        • Greenfield Tower
        • Unit 8, 6th Floor
        • Tsim Sha Tsui
        • Kowloon
        • Hong Kong

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        838SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2005
        GZTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005

        Biography

        EVA Precision Industrial Holdings Limited, an investment holding company, provides precision manufacturing services in the People’s Republic of China and Vietnam. It operates through two segments, Metal Stamping and Plastic Injection. The company engages in the design and fabrication of metal stamping molds and plastic injection molds; and manufacture of metal stamping components and lathing components, as well as plastic injection components. It is also involved in the lathing of metal components; and assembly of precision metal and plastic components into semi-finished products. In addition, the company trades in metal stamping molds, plastic injection molds, and components; and develops properties. It serves the office automation equipment, automobile, high technology, and consumer electronic industries. The company was founded in 1993 and is headquartered in Tsim Sha Tsui, Hong Kong. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 12:48
        End of Day Share Price2020/01/23 00:00
        Earnings2019/06/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.