State Innovation Holdings Limited (8275) AI Stock Analysis

• Market Cap: HK$96.00M
• Dividend Yield: N/A
• Average Volume (3M): 5.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -65.22%
• EPS Growth: -480.37%
• Country: HK
• Employees: 27
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 959,985,530
• 10 Day Avg. Volume: 3,812,100
• 30 Day Avg. Volume: 5,179,429
• PEG Ratio: <0.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -3.52
• 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: 47 Neutral
• Price Target: HK$0.10 ▼(-10.00% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

Overall score is held down primarily by weak financial performance—ongoing losses and negative operating/free cash flow—despite some balance-sheet improvement. Technical indicators are largely neutral with only mild near-term support signals, and valuation is constrained by a negative P/E and no dividend data.

Positive Factors

Improving balance sheet

Reported reduction in debt and an improving debt-to-equity profile strengthens solvency and lowers refinancing risk. This durable improvement gives the company more financial flexibility to fund operations or bid on contracts without immediate external capital, aiding multi-month stability.

Demonstrated revenue pickup (2024)

The income statement notes a notable revenue increase in 2024, indicating the company can secure projects or clients. Sustained ability to win work is structurally important for future recovery, improving prospects for margin recovery and scale over a 2–6 month horizon.

Lean operating footprint

A small workforce suggests a lean cost structure and operational flexibility; lower fixed headcount can reduce burn and allow faster scaling up or down with project demand. This structural agility supports capital preservation and resilience across cycles.

Negative Factors

Recurring net losses

Persistent net losses and negative profit margins erode equity and constrain reinvestment. Over months this undermines project competitiveness, restricts ability to absorb cost shocks, and keeps returns negative, weakening long-term shareholder value creation.

Negative operating and free cash flow

Sustained negative operating and free cash flow signifies ongoing cash burn, forcing reliance on external financing or asset sales. This structurally limits capital for growth or working capital, increasing liquidity risk and reducing runway over the medium term.

Severe revenue and EPS volatility

Large negative revenue and EPS swings highlight unstable demand and operational volatility. Such structural variability makes forecasting, margin recovery, and long-term contract negotiation harder, increasing execution risk and lowering resilience to industry cycles.

State Innovation Holdings Limited Business Overview & Revenue Model

Company Description

State Innovation Holdings Limited, an investment holding company, provides foundation work services in Hong Kong. The company undertakes bored piling and other foundation works. It also offers management services for construction works; and machinery rental and leasing services. The company was formerly known as Beaver Group (Holding) Company Limited. The company was incorporated in 2017 and is headquartered in Kwai Chung, Hong Kong.

State Innovation Holdings Limited Financial Statement Overview

Summary

Weak fundamentals: recurring net losses and negative margins, plus persistently negative operating and free cash flow. Balance sheet is comparatively steadier with reduced debt and a healthy equity ratio, but negative ROE underscores poor shareholder returns.

Income Statement

State Innovation Holdings Limited has shown inconsistent performance in its income statement. The company experienced a decline in gross profit margin due to a significant drop in gross profit, especially in 2025. The net profit margin has been negative for multiple years, indicating ongoing profitability challenges. Revenue growth has been volatile, with a notable increase in 2024, but overall, the company has struggled to maintain positive EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity base, with a debt-to-equity ratio improving over time as debt levels decreased. However, the return on equity remains negative due to continuous net losses, posing a risk to shareholder returns. The equity ratio is healthy, indicating a strong proportion of equity financing relative to total assets, which is a positive indicator of financial stability.

Cash Flow

Cash flow analysis reveals persistent negative operating cash flows, exacerbating the company's liquidity issues. Free cash flow has also been negative, indicating cash outflows are higher than cash inflows, which could impact future operations and investments. The operating cash flow to net income ratio is unfavorable, suggesting inefficient conversion of profits into cash.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	91.11M	158.55M	139.97M	135.10M	146.74M	141.79M
Gross Profit	-28.85M	13.57M	34.93M	-6.97M	-23.40M	15.16M
EBITDA	-49.32M	-22.08M	17.09M	-17.45M	-30.00M	-1.62M
Net Income	-52.95M	-31.15M	8.35M	-26.76M	-37.80M	-14.71M
Balance Sheet
Total Assets	135.16M	137.13M	168.70M	128.47M	112.59M	132.69M
Cash, Cash Equivalents and Short-Term Investments	43.96M	30.14M	66.24M	12.16M	4.34M	7.53M
Total Debt	192.00K	1.27M	4.03M	7.47M	15.95M	35.44M
Total Liabilities	17.04M	21.61M	45.32M	56.17M	62.07M	77.93M
Stockholders Equity	118.12M	115.53M	123.38M	72.62M	50.53M	54.77M
Cash Flow
Free Cash Flow	-38.72M	-30.04M	-4.13M	-37.77M	-17.30M	1.12M
Operating Cash Flow	-38.69M	-26.69M	-2.35M	-19.84M	-9.65M	6.44M
Investing Cash Flow	-9.24M	-20.80M	-6.38M	-18.52M	-7.17M	3.31M
Financing Cash Flow	40.87M	19.58M	44.71M	39.55M	13.63M	-7.67M

State Innovation Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8275, the sentiment is Negative. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8275.

State Innovation Holdings Limited 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%
9929	60 Neutral	HK$1.50B	131.58	5.38%	―	―	―
2221	51 Neutral	HK$224.72M	-2.28	-25.76%	―	38.15%	-1533.02%
6080	48 Neutral	HK$129.96M	-3.28	-9.58%	―	-9.82%	-309.09%
8275	47 Neutral	HK$96.00M	-2.79	-45.55%	―	-65.22%	-480.37%
1741	42 Neutral	HK$150.40M	-14.63	-47.44%	―	-34.70%	-388.24%