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].
从二级供应商过渡到一级供应商