Solis Holdings Ltd. (2227) AI Stock Analysis

• Market Cap: HK$171.22M
• Dividend Yield: N/A
• Average Volume (3M): 347.20K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.01
• 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: 52 Neutral
• Price Target: HK$0.27 ▲(70.63% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is driven primarily by weak profitability and cash-flow metrics despite a conservatively leveraged balance sheet. Technicals are supportive with the price above major moving averages, but very overbought RSI/Stoch readings add near-term risk. Valuation is moderate with a mid-range P/E, while dividend support cannot be evaluated due to missing yield data.

Positive Factors

Low leverage (conservative balance sheet)

A debt-to-equity of 0.10 indicates conservatively leveraged capital structure, providing durable financial flexibility. This reduces refinancing and distress risk across project cycles, supports disciplined bidding in Engineering & Construction, and preserves capacity for strategic investments over months.

Moderate revenue growth

Sustained top-line growth of ~6% suggests ongoing demand and execution capability. Structural revenue expansion provides a firmer base to improve gross margins and scale overhead, supporting longer-term profitability recovery if operational efficiencies are implemented and contracts remain stable.

Healthy equity base

A strong equity ratio signals a robust capital buffer that absorbs project volatility and supports creditworthiness. Over the medium term this reduces the need for urgent external funding, enabling steadier capital allocation and preserving strategic optionality through industry cycles.

Negative Factors

Weak profitability

Low net margin and negative EBIT point to persistent operational inefficiencies and pricing or cost pressures. Such weak profitability limits internal funding for growth, reduces resilience to input-cost inflation, and constrains the timeframe for margin recovery absent structural changes.

Poor cash-flow quality

Negative operating cash flow versus reported income indicates earnings are not converting to cash, creating a durable liquidity risk. Over months this can limit capex, delay supplier payments, and force reliance on external financing, undermining operational flexibility and project execution.

Very low returns on equity

ROE of ~1.6% shows limited value creation from shareholders' capital. Persistently low ROE constrains reinvestment returns and shareholder returns, making it harder to justify new capital deployment and reducing long-term appeal unless operational profitability meaningfully improves.

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

Moderate revenue growth (+6.33%) is offset by weak profitability (4.07% net margin and negative EBIT margin) and weak cash-flow quality (operating cash flow to net income of -0.15). The balance sheet is a relative strength with low leverage (0.10 debt-to-equity) but returns remain modest (1.57% ROE).

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: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.19, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 78.53 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%
1486	58 Neutral	HK$315.65M	0.38	11.15%	―	4.56%	―
1751	56 Neutral	HK$464.49M	-9.37	-53.25%	―	-45.46%	-329.88%
2227	52 Neutral	HK$171.22M	2.19	5.68%	―	23.93%	425.00%
1707	47 Neutral	HK$90.72M	-5.35	-9.58%	―	3.97%	14.02%

Solis Holdings Ltd. Corporate Events

Solis Holdings Grants S$21 Million Property Disposal Option in Major Transaction

Solis Holdings Ltd. has entered into an option agreement under which its indirect wholly owned subsidiary, Sing Moh Electrical Engineering Pte Ltd., has granted Straits Teamwork Pte Ltd. an option to purchase a property for S$21 million, with the option exercisable within a specified period in October 2026 and an option fee forfeitable to the vendor if not exercised. The transaction qualifies as a major transaction under Hong Kong Listing Rules, requiring reporting, announcement, a circular to shareholders and approval, which the company has already secured via written consent from a controlling shareholder group, meaning no general meeting will be held; however, the deal remains contingent on the purchaser exercising the option, and the company has cautioned shareholders and investors that the disposal may or may not proceed.

The most recent analyst rating on (HK:2227) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on Solis Holdings Ltd. stock, see the HK:2227 Stock Forecast page.

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.

The most recent analyst rating on (HK:2227) stock is a Hold with a HK$0.13 price target. To see the full list of analyst forecasts on Solis Holdings Ltd. stock, see the HK:2227 Stock Forecast page.

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.