08 Apr 2024
Facing the on-going uncertain international market, geopolitical condition and interest rate hikes which significantly dampened downstream customers’ consumption desire, EVA Precision’s (EVAP) FY23 turnover decreased marginally by 1.4% YoY to HK$6.2bn. FY23 NP, however went up by 15.1% YoY to HK$237.1m, mainly driven by 1) lean production and effective costs control and 2) positive synergies brought by integrating the production capacity of EVA intelligent Manufacturing acquired in 2021 hence lowering OPEX. Stripping off the one-off gains from the write-back provisions and the exchange gain from the appreciation of the Mexican peso, operating profit before interest and taxes was up by 19.1% YoY, amounting to HK$332.6m in FY23. GPM edged up slightly by 0.9ppt to 20.9% thanks to effective cost control. At the same time, the company also gradually reduced the proportion of lower-margin products, thus enhancing the product mix which in turn improved the overall GPM level.