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

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • EVA Precision Industrial Holdings is not covered by any analysts.

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


Market Performance


7 Day Return

-2.9%

SEHK:838

-0.5%

HK Machinery

0.7%

HK Market


1 Year Return

-5.7%

SEHK:838

5.3%

HK Machinery

-5.3%

HK Market

838 underperformed the Machinery industry which returned 8.3% over the past year.

838 underperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

838IndustryMarket
7 Day-2.9%-0.5%0.7%
30 Day4.8%6.1%4.9%
90 Day-2.9%-4.3%-3.7%
1 Year-4.0%-5.7%8.0%5.3%-1.8%-5.3%
3 Year-29.6%-33.3%54.0%44.8%16.4%4.6%
5 Year-61.4%-64.9%62.1%45.7%18.0%-1.7%

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 based on future cash flows and its price relative to the stock market?

15.92x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EVA Precision Industrial Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EVA Precision Industrial Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

EVA Precision Industrial Holdings is overvalued based on earnings compared to the HK Machinery industry average.

EVA Precision Industrial Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for EVA Precision Industrial Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

EVA Precision Industrial Holdings is good value based on assets compared to the HK Machinery industry average.


Next Steps

Future Growth

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

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if EVA Precision Industrial Holdings is high growth as no revenue estimate data is available.

EVA Precision Industrial Holdings's earnings are expected to grow significantly at over 20% yearly.

Unable to compare EVA Precision Industrial Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

EVA Precision Industrial Holdings's earnings growth is expected to exceed the Hong Kong market average.

EVA Precision Industrial Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if EVA Precision Industrial Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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


Past Earnings Growth Analysis

EVA Precision Industrial Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

EVA Precision Industrial Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

EVA Precision Industrial Holdings's 1-year earnings growth is negative, it can't be compared to the HK Machinery industry average.


Return on Equity

EVA Precision Industrial Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EVA Precision Industrial Holdings used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.


Return on Capital Employed

EVA Precision Industrial Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is EVA Precision Industrial Holdings's financial position?


Financial Position Analysis

EVA Precision Industrial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

EVA Precision Industrial Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

EVA Precision Industrial Holdings's level of debt (75.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (56.3% vs 75.7% today).

Debt is not well covered by operating cash flow (11.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.91%

Current Dividend Yield


Dividend Yield and Payments Analysis

EVA Precision Industrial Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

EVA Precision Industrial Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

5.7yrs

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

Yaohua's remuneration is higher than average for companies of similar size in Hong Kong.

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

5.7yrs

Average Tenure

47yo

Average Age

The average tenure for the EVA Precision Industrial Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

14.0yrs

Average Tenure

56.5yo

Average Age

The average tenure for the EVA Precision Industrial Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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
BuyHK$4,249,02515 Jan 19
FIL Limited
EntityCompany
Shares4,958,000
Max PriceHK$0.86
SellHK$414,85421 Nov 18
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares656,000
Max PriceHK$0.63
BuyHK$401,17416 Nov 18
Invesco Ltd.
EntityCompany
Shares638,000
Max PriceHK$0.63

Ownership Breakdown


Management Team

  • Francis Wong (47yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Yaohua Zhang (47yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: HK$10.44m
  • Hwo Jie Zhang (56yo)

    Co-Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$10.44m
  • Jian Zhang (45yo)

    Co-Founder & Vice Chairman

    • Tenure: 14yrs
    • Compensation: HK$10.44m
  • Lei Song (45yo)

    President of the Group Electronic Business

    • Tenure: 3.8yrs
  • Xiao Feng Hu (49yo)

    Vice President of the Group's Operational Management Centre

    • Tenure: 0yrs
  • Wen Cheng Liu (49yo)

    Chief Strategic Officer

    • Tenure: 7.5yrs
  • Bin Li (46yo)

    Vice President of Group's Corporate Management Centre

    • Tenure: 3.8yrs
  • Ji Wei Lu (44yo)

    Vice President of the Group's Sales Management Centre

    • Tenure: 0yrs

Board Members

  • Tak Choy (90yo)

    Independent Non Executive Director

    • Tenure: 14.7yrs
    • Compensation: HK$230.00k
  • Hiu Lam (57yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$230.00k
  • Yaohua Zhang (47yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: HK$10.44m
  • Hwo Jie Zhang (56yo)

    Co-Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$10.44m
  • Jian Zhang (45yo)

    Co-Founder & Vice Chairman

    • Tenure: 14yrs
    • Compensation: HK$10.44m
  • Tai Chiu Leung (73yo)

    Independent Non Executive Director

    • Tenure: 13.3yrs
    • 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$1.076b
  • Shares outstanding: 1.66b
  • 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 St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:42
End of Day Share Price2019/09/17 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.