Solartech International Holdings Limited (1166) AI Stock Analysis

• Market Cap: HK$50.46M
• Dividend Yield: N/A
• Average Volume (3M): 30.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -29.37%
• EPS Growth: 75.02%
• Country: HK
• Employees: 350
• Sector: Energy
• Sector Strength: 76
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.47
• Shares Outstanding: 118,726,616
• 10 Day Avg. Volume: 54,029
• 30 Day Avg. Volume: 30,591
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(19.05%Upside)

The overall score of 52.6 reflects significant financial performance challenges, particularly in profitability and cash flow. While the technical analysis indicates positive momentum, the negative valuation metrics due to losses weigh heavily. Strategic improvements in financial management could enhance the company's stability and attractiveness.

Solartech International Holdings Limited Business Overview & Revenue Model

Company Description

Solartech International Holdings Limited (1166) is an investment holding company primarily engaged in the manufacturing and trading of cables and wires. The company operates in two main segments: the manufacture and trading of copper rods, and the manufacturing and trading of cable and wire products. Solartech International serves a broad range of industries, including telecommunications, building and construction, and electronics, providing high-quality materials essential for infrastructure and technological development.

How the Company Makes Money

Solartech International Holdings Limited generates revenue through the manufacturing and trading of its core products, namely copper rods, wires, and cables. The company earns money by selling these products to various industries, such as telecommunications, construction, and electronics, which rely on high-quality materials for their operations. By maintaining a strong manufacturing capacity and a diversified product portfolio, Solartech International can meet the demands of different markets. Partnerships with suppliers and clients, along with its strategic market presence, also play a crucial role in driving sales and expanding its customer base. Additionally, fluctuations in commodity prices, particularly copper, can significantly impact the company's revenue, as these materials are integral to its production processes.

Solartech International Holdings Limited Financial Statement Overview

Summary

Solartech International Holdings Limited faces significant financial challenges, particularly with profitability and cash flow management. Despite showing strong revenue growth, the company struggles with negative margins and cash flow inefficiencies. While the balance sheet reflects moderate leverage, the negative return on equity points to a need for better operational efficiency. Strategic improvements in cost management and cash flow generation are critical for enhancing financial stability.

Income Statement

Solartech International Holdings Limited shows a volatile revenue trend with significant fluctuations in profitability. The latest annual data reveals a gross profit margin of 8.45% and a significant net loss, leading to a negative net profit margin of -11.12%. Revenue saw a substantial growth rate of 112.57% over the past year, indicating recovery or expansion, but EBIT and EBITDA margins remain deeply negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.33. The equity ratio stands at 58.56%, which shows a stronger reliance on equity financing. However, the return on equity is negative, at -11.06%, indicating inefficiency in utilizing shareholder funds to generate profit. The company's asset base has decreased slightly, suggesting a need for strategic asset management.

Cash Flow

The cash flow statement reflects challenges in generating free cash flow, with a negative free cash flow of -15.55 million. Operating cash flow has turned negative in the latest period, impacting liquidity. The free cash flow to net income ratio is negative, indicating cash flow issues despite revenue growth. The operating cash flow to net income ratio being negative further highlights inefficiencies in converting sales into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
527.84M	795.70M	374.32M	471.52M	433.05M	288.27M
	Gross Profit
74.36M	67.22M	12.15M	66.68M	58.23M	32.03M
	EBIT
-11.26M	-27.11M	-66.74M	-11.22M	-29.11M	-38.71M
	EBITDA
-42.88M	-87.97M	-130.60M	-61.25M	205.83M	-91.84M
	Net Income Common Stockholders
-55.98M	-88.52M	-176.25M	-102.22M	156.35M	-142.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.31M	106.33M	91.59M	78.14M	144.17M	74.59M
	Total Assets
1.29B	1.37B	1.45B	1.69B	1.76B	1.38B
	Total Debt
230.50M	264.23M	264.00M	339.01M	272.84M	185.78M
	Net Debt
147.06M	161.71M	178.34M	267.66M	133.77M	119.96M
	Total Liabilities
522.12M	568.59M	558.71M	603.78M	565.75M	371.24M
	Stockholders Equity
768.76M	800.49M	889.20M	1.09B	1.20B	1.02B
Cash Flow		Free Cash Flow
-1.84M	-15.55M	16.74M	-4.03M	-12.52M	-22.13M
	Operating Cash Flow
236.00K	-7.07M	19.65M	1.24M	-9.19M	-12.48M
	Investing Cash Flow
30.67M	37.92M	6.23M	-133.72M	-1.40M	-45.00K
	Financing Cash Flow
-55.75M	-14.28M	-6.03M	72.90M	69.69M	18.17M

Solartech International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1166, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.36, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1166.

Solartech International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8136	71 Outperform	HK$45.00M	4.79	9.85%	―	-7.08%	-23.53%
1710	59 Neutral	HK$149.00M	17.33	2.07%	15.38%	-13.16%	-81.74%
Sector *	57 Neutral	HK$87.50B	3.38	-1.55%	5.86%	-6.29%	-41.56%
1166	53 Neutral	HK$50.46M	―	-6.76%	―	-29.37%	75.02%
1750	50 Neutral	HK$57.60M	35.56	0.99%	―	-15.58%	-76.92%
3919	45 Neutral	HK$35.64M	―	-2.19%	―	17.57%	53.36%
8623	35 Underperform	HK$19.52M	―	-239.13%	―	2.69%	15.55%

Solartech International Holdings Limited Corporate Events

Solartech Updates Remuneration Committee Terms to Enhance Governance

Solartech International Holdings Limited has updated the terms of reference for its Remuneration Committee, emphasizing the importance of independent non-executive directors in its composition. The updated terms, effective from May 2025, outline the committee’s structure, meeting procedures, and responsibilities, aligning with corporate governance standards and ensuring transparency in executive remuneration practices.

Solartech International Updates Nomination Committee Terms

Solartech International Holdings Limited has updated the terms of reference for its Nomination Committee, which was initially adopted in 2012 and subsequently updated in 2013 and 2025. The committee’s structure emphasizes diversity and independence, requiring a majority of independent non-executive directors and at least one member of a different gender. This update reflects the company’s commitment to robust corporate governance practices, potentially enhancing its industry standing and stakeholder trust.

Solartech Updates Whistleblowing Committee Terms

Solartech International Holdings Limited has updated the terms of reference for its Whistleblowing Committee, initially adopted in April 2022 and revised in May 2025. The committee, primarily composed of independent non-executive directors, is responsible for overseeing whistleblowing procedures and ensuring compliance with corporate governance codes. This update reflects the company’s commitment to maintaining transparency and accountability in its operations, potentially enhancing its reputation and trust among stakeholders.

Solartech Updates Audit Committee Terms to Boost Governance

Solartech International Holdings Limited has updated the terms of reference for its Audit Committee, which is responsible for overseeing the company’s financial reporting and auditing processes. The updated terms emphasize the importance of independent non-executive directors in the committee, ensuring compliance with the Hong Kong Stock Exchange’s listing rules. These changes aim to enhance the company’s governance and transparency, potentially strengthening stakeholder confidence and aligning with industry best practices.