Digit Wuhan Automotive Industrial Park No. 19 Changfu Industrial Park, Caidian Economic Development Zone EVA Precision Industrial Holdings Limited 億和精密工業控股有限 公 司 Wuhan, Hubei Province, the People's Republic of China 中國湖北省武漢市蔡甸經濟開發區常福工業園19號 數碼模武漢汽車產業園 Telephone 電話: 86-27 8661 9999 Facsimile 傳真: 86-27 8661 9999-209 Postcode 郵編: 430120 EVA Shenzhen (Tianliao) Smart Device Industrial Park Industrial District No. 9, Tian Liao Community, Yu Tang Town, Guang Ming District, Shenzhen, Guangdong Province, the People' ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 EVA Precision Industrial Holdings Limited （於開曼群島註冊成立之有限公司） （股份代號：838） 截至二零二四年十二月三十一日止年度全年業績 財務業績 - 1 - 合併綜合收益表 截至二零二四年十二月三十一日止年度 | | | 二零二四年 | 二零二三年 | | --- | --- | --- | --- | | | 附註 | 港幣千元 | 港幣千元 | | 收入 | 4 | 6,296,926 | 6,182,658 | | 銷售成本 | 5 | (4,921,294) | (4,891,094) | | 毛利 | | 1,375,632 | 1,291,564 | | 其他收益 | | 42,206 | 49,187 | | 其他（虧損）╱收益－淨額 | | (27,333) | 37,067 | | 分銷成本 | 5 | (318,983) | (326, ...

3 Feb 2025 CMB International Global Markets | Equity Research | Company Update EVA Holdings (838 HK) 2H24 preview: both revenue, NP stable HoH Maintain BUY. We project EVA's 2H24E revenue to rise 1% YoY and net profit to increase 2% YoY. We expect auto component revenue to grow faster in FY25E, as new business ramps up. We also expect its office automation (OA) business to remain stable with slight increase in gross margin. We estimate EVA's net profit to rise 18% YoY to HK$289mn in FY25E. We project 2H24E ...

Financial Performance - EVA Precision Industrial Holdings Limited reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the first half of 2024[8]. - The company achieved a net profit margin of 12%, translating to a net profit of HKD 144 million, up from HKD 120 million in the same period last year[8]. - Revenue for the six months ended June 30, 2024, was HKD 2,999,779, an increase from HKD 2,862,158 in the same period of 2023, representing a growth of approximately 4.8%[19]. - Gross profit for the period was HKD 602,664, compared to HKD 545,000 in 2023, reflecting a gross margin improvement[19]. - Net profit attributable to owners for the six months ended June 30, 2024, was HKD 127,813, up from HKD 122,624 in 2023, indicating a growth of about 4.8%[20]. - Total comprehensive income for the period was HKD 162,143, significantly higher than HKD 105,227 in the previous year, marking an increase of approximately 54%[20]. - Basic and diluted earnings per share for the period were both HKD 7.3, compared to HKD 7.0 in the same period last year, showing an increase of about 4.3%[20]. - Operating profit for the same period rose by 3.7% year-on-year to HKD 195,982,000, up from HKD 189,006,000 in the previous year[114]. - Profit attributable to shareholders increased by 4.2% year-on-year to HKD 127,813,000, compared to HKD 122,624,000 for the same period in 2023[114]. Market Expansion and Strategy - User data indicates a 20% increase in active customers, totaling 500,000 users across all platforms[8]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region by the end of 2025[8]. - EVA is investing HKD 200 million in R&D for new smart device technologies, aiming to launch two new products by Q3 2024[8]. - The company has completed the acquisition of a local competitor, which is expected to enhance its production capacity by 30%[8]. - EVA's future guidance estimates a revenue growth of 10-15% for the full year 2024, driven by increased demand in the automotive sector[8]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[41]. - The company aims to enhance its product offerings and technological advancements through ongoing research and development initiatives[195]. - EVA is focused on expanding its market presence in the automotive sector, particularly in electric vehicle components[195]. Sustainability and Efficiency - EVA is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 15% by 2025[8]. - The company reported a 5% increase in production efficiency due to the implementation of new manufacturing technologies[8]. - The group maintained a focus on cost control and efficiency improvements, implementing lean production in industrial parks and enhancing inventory management[114]. - The company has initiated a series of measures to enhance sustainable development, including linking bank loans to sustainability performance and balancing debt repayment with business growth[123]. Financial Position and Assets - Total assets as of June 30, 2024, were HKD 4,243,153, a slight decrease from HKD 4,318,676 as of December 31, 2023[21]. - Current assets net value decreased to HKD 1,150,173 from HKD 1,278,924 at the end of 2023, indicating a decline of approximately 10%[22]. - Total liabilities as of June 30, 2024, were HKD 3,092,980, compared to HKD 3,039,752 at the end of 2023, reflecting an increase of about 1.75%[21]. - The company's equity increased to HKD 3,125,212 as of June 30, 2024, from HKD 2,997,714 at the end of 2023, representing a growth of approximately 4.3%[22]. - Cash and cash equivalents as of June 30, 2024, were HKD 1,666,299, up from HKD 1,610,592 at the end of 2023, indicating an increase of about 3.5%[21]. - The company reported a foreign exchange gain of HKD 35,575,000 on cash and cash equivalents, compared to a loss of HKD 6,968,000 in the previous year[26]. - The company’s total borrowings amounted to HKD 604,861,000, a decrease from HKD 661,975,000 in the same period last year, representing a decline of 8.6%[26]. - As of June 30, 2024, the total assets of the company amounted to HKD 7,370,670,000, while total liabilities were HKD 4,245,458,000[51]. Operational Highlights - The company continues to focus on high-precision manufacturing services, emphasizing the production of high-quality and dimensionally accurate molds and components[27]. - The automotive parts segment reported revenue of HKD 943,078 for the six months ended June 30, 2024, compared to HKD 854,912 in the same period last year, reflecting an increase of approximately 10.3%[45]. - The office automation equipment segment generated revenue of HKD 2,056,701 for the six months ended June 30, 2024, up from HKD 2,007,246 in the prior year[45]. - The company has established strategic partnerships with three major automotive manufacturers to enhance its supply chain capabilities[8]. - The company has launched seven server projects that have officially commenced production in the first half of 2024, leveraging its global production layout and strong R&D capabilities[123]. Customer and Supplier Relations - The revenue from the largest customer, which accounted for over 10% of the group's revenue, was approximately HKD 1,002,813,000 for the six months ending June 30, 2024[53]. - As of June 30, 2024, sales to the top five customers accounted for 63.7% of the total revenue, indicating a significant reliance on these clients[152]. - The company has established long-term relationships with its top five customers, ranging from 7 to over 10 years, and with its top five suppliers, ranging from 4 to over 10 years[152]. - The company actively engages in supplier selection based on integrity, social responsibility, and environmental impact, ensuring compliance with international best practices[151]. Shareholder and Governance - Major shareholder Zhang Yao Hua holds a personal interest of 47.07% in the company, while Zhang Jie holds 52.93% in Prosper Empire Limited, which owns 38.70% of the company[177][178]. - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2024[186]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls for the group[188]. - The company has adopted the standard code for securities transactions by directors, confirming compliance by all directors during the reporting period[187]. Future Outlook - The company anticipates a strong recovery in orders from Vietnam in the second half of 2024 as inventory destocking is nearly complete[115]. - The company aims to consolidate its market leadership position and achieve sustainable growth despite market volatility and geopolitical complexities[1]. - The company will explore opportunities for capacity and business expansion to enhance business diversity and long-term growth[1].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HK$1.40 from HK$1.50 [2][4]. Core Insights - The company is transitioning towards becoming a first-tier supplier in the automotive parts sector, which is expected to enhance revenue from OEM orders in FY25 [1]. - Despite a cautious approach to maintain gross profit margins (GPM), revenue and net profit forecasts for FY24 have been reduced by 3% and 9% respectively, but the earnings outlook for FY25 appears more promising [1]. - The company anticipates a 15% year-on-year growth in automotive parts revenue for FY25, reaching HK$2.34 billion [1]. - The office automation (OA) segment's gross profit margin expanded by approximately 1 percentage point in the first half of 2024, with a projected continued improvement in the second half [1]. Financial Summary - Revenue projections for FY24 are lowered to HK$6.38 billion, with net profit estimates adjusted to HK$260 million [1][7]. - For FY25, revenue is expected to grow to HK$6.86 billion, with net profit forecasted at HK$301 million, reflecting a 15% increase in operating profit [1][8]. - The company maintains a dividend payout ratio of 30%, resulting in a projected dividend yield of 7% [1][2]. Valuation Metrics - The estimated price-to-earnings (P/E) ratio for FY25 is set at 11 times, with a valuation of HK$0.50 per share for the automotive components segment and HK$0.90 per share for the OA segment [2][9]. - The overall sum-of-the-parts (SOTP) valuation suggests a target price of HK$1.40, indicating a potential upside of 118.8% from the current price of HK$0.64 [4][9]. Revenue and Profitability Forecasts - Revenue is projected to grow from HK$6.38 billion in FY24 to HK$6.86 billion in FY25, and further to HK$7.23 billion in FY26 [3][7]. - Net profit is expected to increase from HK$260 million in FY24 to HK$301 million in FY25, and HK$327 million in FY26 [3][7]. - The gross profit margin is forecasted to stabilize around 21% for FY24 to FY26 [7][8]. Market Performance - The stock has shown a decline of 4.5% over the past month and 9.9% over the past three months, indicating a challenging market environment [4].

13 Sep 2024 CMB International Global Markets | Equity Research | Company Update EVA Holdings (838 HK) On track to tier-1 supplier transformation We believe that EVA's auto parts business is on track to transform into a tier-1 supplier with more orders from OEMs to lift FY25E revenue, based on our recent meeting with management. Although we cut our FY24E revenue and NP by 3% and 9%, respectively, amid its cautious approach to maintain GPM, we see higher earnings visibility in FY25E. We estimate its dividend ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不會就本公佈全部或任何部份內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 EVA Precision Industrial Holdings Limited （於開曼群島註冊成立之有限公司） （股份代號：838） 截至二零二四年六月三十日止六個月之中期業績 財務業績 億和精密工業控股有限公司（「本公司」）董事會欣然宣佈本公司及其附屬公司（統稱「本集 團」）截至二零二四年六月三十日止六個月之未經審核合併財務業績及比較數字如下： - 1 - 簡明合併中期綜合收益表 截至二零二四年六月三十日止六個月 - 2 - | --- | --- | --- | --- | |--------------------------------------------------------------------------------|-------|---------------------------------------------------------|--------------- ...

Investment Rating - The report maintains a "Buy" rating for EVA Holdings, indicating a potential return exceeding 15% over the next 12 months [1][28]. Core Insights - EVA Holdings is transitioning from a secondary parts supplier to a primary participant, which is expected to drive growth in the coming years. The company's automation business is projected to maintain stable gross margins due to growth in Weihai and recovery in Vietnam [1][32]. - The automotive parts revenue is expected to grow at a compound annual growth rate (CAGR) of 15% from FY24 to FY25, with management targeting HKD 2.2 billion in automotive parts revenue for FY24 [1][32]. - The report highlights the importance of partnerships with primary suppliers in the new hot forming business, which could enhance EVA's profitability and revenue per vehicle [1][32]. Financial Summary - Revenue for FY24E is projected at HKD 6.571 billion, with a year-on-year growth of 6.3%. Net profit is expected to reach HKD 285 million, reflecting a 20.3% increase [20][34]. - The gross profit margin (GPM) for automotive parts is anticipated to be 21.8% in FY24E, supported by increased capacity and reduced capital expenditures [32][34]. - EVA's net profit for the first half of FY24 is expected to grow by 15% year-on-year, reaching HKD 141 million, with an overall net profit forecast of HKD 285 million for FY24 [1][32]. Valuation - The target price for EVA Holdings is set at HKD 1.50, based on a sum-of-the-parts (SOTP) valuation. The automotive parts business is valued at HKD 0.50 per share, while the office automation business is valued at HKD 1.00 per share [32][34]. - The report notes that the valuation reflects a revised FY24E price-to-earnings (P/E) ratio of 13 times, up from 11 times previously [32][34].

Disclosures & Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analy ...

Awards and Recognitions - Segway-Ninebot awarded the company "2019 Best Supplier" and "2019 Joint Innovation Award"[3] - Canon awarded the company "First Prize in the 24th Comprehensive Assembly Capability Invitational Competition"[2] - The company was ranked among "2019 Guangdong Top 500 Enterprises", "2019 Guangdong Top 100 Private Enterprises", and "2019 Guangdong Top 100 Manufacturing Enterprises"[32] - Fujifilm awarded the company "Excellent Partner (2020 - 10 Years Consecutive Award)"[30] - The company was ranked among "2021 Guangdong Top 500 Enterprises"[64] - The company was awarded "2021 Most Potential Supplier" by Great Wall Motors Chongqing Branch[46] - The company was recognized as "2021 Guangdong Provincial Intellectual Property Demonstration Enterprise"[54] - The company was awarded "2020 Best Quality Award" by Mitac[63] - The company was ranked among "2020 Shenzhen Top 500 Enterprises"[43] - The company was awarded "2021 Cooperative Supplier Award" by Aisin Foshan Body Parts Co., Ltd.[49] - The company was awarded the "Best Under a Billion" by Forbes (Asia) magazine[168] - The company received the "Excellence in Manufacturing Achievement Award" from the Hong Kong Federation of Innovation Technology and Manufacturing Industries in 2012[182] - The company's Shenzhen Yihao Mold Manufacturing Co., Ltd. and Chongqing Digital Mold Body Mold Co., Ltd. were certified as "National High-Tech Enterprises"[183] Financial Performance - Inventory turnover days increased to 48 days in 2023 from 46 days in 2022 due to overall production decline[87] - Accounts receivable turnover days rose to 107 days in 2023 from 98 days in 2022[87] - Accounts payable turnover days increased to 111 days in 2023 from 108 days in 2022[87] - Cash conversion cycle extended to 44 days in 2023 from 36 days in 2022[87] - Net debt to equity ratio increased to 25.2% in 2023 from 21.0% in 2022[87] - Net profit margin improved to 3.8% in 2023 from 3.3% in 2022[87] - Return on equity increased to 7.9% in 2023 from 7.3% in 2022[87] - The company's net profit margin and return on equity increased due to higher owner's attributable profit[133] - The company's profit attributable to owners for 2023 was HKD 237,095,000, up from HKD 206,017,000 in 2022, primarily due to increased operating profit[200] Business Operations - The company operates two main businesses: office automation equipment and automotive components, with manufacturing bases in China, Southeast Asia, and North America[121] - The office automation equipment business provides design and electronic manufacturing services (D-EMS) for leading brands, offering a one-stop solution from product design to assembly[121] - The automotive components business focuses on platformization, supplying platform and universal parts to global Tier 1 suppliers, OEMs, and automakers[121] - The company has six industrial parks for office automation equipment in Shenzhen, Suzhou, Weihai, and Haiphong, Vietnam[121] - The automotive components business operates in six industrial parks located in Shenzhen, Zhongshan, Chongqing, Sichuan, Wuhan, and San Luis Potosí, Mexico[121] - The company operates as a vertically integrated one-stop precision manufacturing service provider, specializing in precision metal stamping, plastic injection molds, and automated assembly[136] Historical Development - The company was established in 1993, starting with metal stamping mold production and later expanding to metal stamping parts[125] - In 2005, the company was listed on the Main Board of the Hong Kong Stock Exchange[127] - The company expanded its business to plastic mold and parts manufacturing in 2004, establishing its first plastic production line in the Shenzhen (Shiyan) Electronics Industrial Park[127] - The company's Yihao (Guangming) Precision Manufacturing Industrial Park in Shenzhen began operations in Q4 2008[142] - The company acquired Chongqing Digital Mold Body Mold Co., Ltd. in mid-2011 as part of its strategic plan to expand into the automotive market[159] - The company's Shenzhen (Shiyan) Electronic Industrial Park's fourth factory building was completed[160] Market and Economic Outlook - The company expects global economic growth to be 2.9% in 2024, lower than 2023, and will continue to adopt a conservative financial strategy[105] - Global demand weakness and excessive terminal inventory led to a decline in the company's business, but order trends improved in the second half of 2023, with revenue starting to rise from October to December 2023[187] Automotive Business Performance - Shenzhen automotive parts business revenue decreased by 5.6% year-on-year in 2023 due to European inflation[98] - Mexico industrial park revenue grew by 23.8% in 2023, the best-performing region for automotive parts business[103] - The company's automotive parts business achieved stable growth, with China's overall car sales reaching 30.094 million units in 2023, a 12% year-on-year increase, and new energy vehicle sales reaching 9.495 million units, a 37.9% year-on-year increase[193] - The operating profit margin of the company's office automation equipment business increased to 7.9% in 2023, up from 5.6% in 2022, while the automotive parts business maintained an operating profit margin of 5.8%[194] Financial Expenses and Taxes - Unallocated expenses for the year ended December 31, 2023, included corporate expenses of HKD 44,847,000 and share-based payment expenses of HKD 10,454,000[195] - The company's financial income and expenses increased significantly in 2023 due to rising interest rates[196] - Income tax expenses for 2023 included current tax expenses of HKD 50,346,000 from Mainland China, HKD 7,402,000 from Vietnam, and HKD 16,195,000 from Mexico[199]