Solis Holdings Ltd. (2227) AI Stock Analysis

• Market Cap: HK$105.29M
• Dividend Yield: N/A
• Average Volume (3M): 347.20K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.16
• Revenue Growth: 23.93%
• EPS Growth: 425.00%
• Country: HK
• Employees: 153
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 915,600,000
• 10 Day Avg. Volume: 167,200
• 30 Day Avg. Volume: 347,200
• PEG Ratio: 0.00
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -3.09
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.17 ▲(5.63% Upside)

The overall stock score for Solis Holdings Ltd. is driven primarily by its technical analysis and valuation. The stock shows strong bullish momentum, but the overbought RSI suggests caution. The valuation is reasonable, though profitability and cash flow challenges weigh on the financial performance score.

Positive Factors

Revenue Growth

The company has demonstrated a 6.33% increase in revenue, indicating a positive trend in expanding its business operations and market reach.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative financial management, providing stability and flexibility for future investments.

Diversified Revenue Streams

Diversification across real estate and hospitality sectors reduces risk and enhances resilience against sector-specific downturns.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth.

Profitability Concerns

Low profitability margins suggest operational inefficiencies, which could affect long-term financial health and shareholder returns.

Operational Inefficiencies

Operational inefficiencies reflected in negative EBIT margins can limit the company's ability to generate profits from core operations.

Solis Holdings Ltd. Business Overview & Revenue Model

Company Description

Solis Holdings Limited, an investment holding company, operates as a design and build mechanical and electrical engineering contractor in Singapore. The company undertakes installation works of electrical-based systems, such as lightings, switchgears, and generators; communication and security systems comprising CCTV and card access systems; and telephone cabling systems. It also operates as a subcontractor for the installation works of air-conditioning system, including air-conditioning units, refrigerant pipework and drainage works, and requisite insulation and fittings; mechanical ventilation systems, including exhaust air fans; and fire protection systems, which include fire alarm panels, heat detectors, fire sprinkler, hose reel, and hydrant systems, and clean gas total flooding systems. It serves private residential, mixed residential, and commercial developments, as well as institutional buildings. The company was founded in 1983 and is headquartered in Singapore. Solis Holdings Limited is a subsidiary of HMK Investment Holdings Limited.

How the Company Makes Money

Solis Holdings Ltd. generates revenue primarily through its property investment and development activities. The company earns income from leasing commercial and residential properties, which provides a steady cash flow. Additionally, the company profits from the sale of developed properties, where it realizes gains from the appreciation of real estate values. In the hospitality sector, Solis Holdings operates hotels and earns revenue from room bookings, food and beverage services, and event hosting, further diversifying its income streams. Strategic partnerships in the real estate and tourism sectors enhance its market reach and operational efficiency, contributing to its overall earnings.

Solis Holdings Ltd. Financial Statement Overview

Summary

Solis Holdings Ltd. shows moderate revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet is a relative strength with low leverage, but operational inefficiencies and cash flow issues pose risks to financial stability.

Income Statement

Solis Holdings Ltd. has shown some improvement in revenue growth with a 6.33% increase in the latest year. However, the company's profitability remains a concern with a low net profit margin of 4.07% and negative EBIT margin, indicating operational inefficiencies. The gross profit margin has decreased over the years, reflecting potential challenges in cost management.

Balance Sheet

The company's balance sheet is relatively stable with a low debt-to-equity ratio of 0.10, suggesting conservative leverage. However, the return on equity is modest at 1.57%, indicating limited profitability relative to shareholder equity. The equity ratio is healthy, showing a strong equity base compared to total assets.

Cash Flow

Cash flow performance is weak, with negative free cash flow growth and an operating cash flow to net income ratio of -0.15, indicating cash flow challenges. The free cash flow to net income ratio is high, suggesting that the company is generating cash flow relative to its net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.90M	19.93M	18.81M	13.69M	14.64M	7.17M
Gross Profit	1.25M	1.91M	3.05M	2.09M	3.03M	-34.00K
EBITDA	1.22M	2.11M	1.74M	-164.00K	-3.58M	-2.85M
Net Income	2.95M	811.00K	-6.00K	-911.00K	-4.00M	-3.13M
Balance Sheet
Total Assets	91.57M	73.20M	70.10M	69.42M	56.50M	59.97M
Cash, Cash Equivalents and Short-Term Investments	29.59M	4.98M	13.81M	24.19M	14.20M	16.60M
Total Debt	5.43M	5.39M	5.68M	6.14M	0.00	0.00
Total Liabilities	38.24M	21.68M	20.93M	21.12M	7.65M	7.89M
Stockholders Equity	53.33M	51.53M	49.17M	48.30M	48.86M	52.08M
Cash Flow
Free Cash Flow	-2.59M	-4.37M	-6.89M	-10.43M	-2.25M	402.00K
Operating Cash Flow	211.00K	-2.40M	3.01M	-221.00K	-1.63M	2.02M
Investing Cash Flow	3.65M	-6.28M	-10.58M	-1.38M	-994.00K	-1.30M
Financing Cash Flow	-498.00K	-539.00K	-711.00K	5.34M	0.00	0.00

Solis Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2227, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.32 is Negative, neither overbought nor oversold. The STOCH value of 55.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2227.

Solis Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2227	60 Neutral	HK$105.29M	6.08	5.68%	―	23.93%	425.00%
1486	58 Neutral	HK$250.79M	4.49	11.15%	―	4.56%	―
1751	47 Neutral	HK$278.21M	―	-53.25%	―	-45.46%	-329.88%
1707	41 Neutral	HK$63.84M	-4.13	-9.58%	―	3.97%	14.02%

Solis Holdings Ltd. Corporate Events

Solis Holdings Acquires S$1 Million Bond in Strategic Investment Move

Solis Holdings Ltd. announced the acquisition of a bond valued at S$1,003,000 (approximately HK$6.0 million) from the open market. The bond, issued by SNB Funding Limited and guaranteed by The Saudi National Bank, has a coupon rate of 3.40% per annum and matures on 1 December 2035. This acquisition is classified as a discloseable transaction under the Listing Rules, requiring reporting and announcement but not shareholder approval. The transaction was funded from Solis Holdings’ internal resources, and the seller remains independent of the company. This move signifies Solis Holdings’ strategic investment in financial instruments, potentially enhancing its financial portfolio and market positioning.

Solis Holdings Ltd. Acquires Bond to Diversify Investment Portfolio

Solis Holdings Ltd. announced the acquisition of a bond valued at S$750,000 from Wee Hur Holdings Ltd., a company listed on the Singapore Exchange. This acquisition is part of Solis Holdings’ strategy to diversify its investment portfolio and generate stable returns, aligning with its goal to broaden revenue streams and enhance shareholder value.

Solis Holdings Ltd. Acquires Bonds in Discloseable Transactions

Solis Holdings Ltd. has announced the acquisition of three bonds, Bond A, Bond B, and Bond C, on the open market. The acquisitions were made on January 29, July 31, and September 30, 2024, with considerations of approximately HK$3.0 million, HK$3.0 million, and HK$3.3 million, respectively. These transactions are considered discloseable under the Hong Kong Stock Exchange’s Listing Rules, as they exceed the 5% threshold but remain below 25%, thus requiring reporting and announcement but not shareholder approval.

Solis Holdings Expands Share Option Scheme to Broaden Stakeholder Engagement

Solis Holdings Limited has issued a supplemental announcement regarding its Share Option Scheme as detailed in its annual report for the year ended 31 December 2024. The scheme is designed to include a broad range of participants such as employees, shareholders, suppliers, and business partners, with 84,000,000 shares available for issue, representing approximately 9.1% of the issued shares. This initiative is likely aimed at enhancing stakeholder engagement and aligning interests across the company’s network.