State Innovation Holdings Limited (8275) AI Stock Analysis

• Market Cap: HK$97.10M
• Dividend Yield: N/A
• Average Volume (3M): 5.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• 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: 815,988,100
• 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: 49 Neutral
• Price Target: HK$0.12 ▲(7.27% Upside)

The overall stock score is primarily impacted by significant financial challenges, including recurring losses and negative cash flows. Technical analysis indicates a neutral to bearish outlook, with the stock trading below key moving averages. Valuation metrics are weak due to a negative P/E ratio and lack of dividend yield, further weighing down the score.

Positive Factors

Revenue Growth

Despite volatility, the notable revenue increase in 2024 suggests potential for capturing market opportunities and expanding business reach.

Improving Debt Levels

Decreasing debt levels enhance financial stability, providing more flexibility for future investments and reducing financial risk.

Strong Equity Ratio

A strong equity ratio indicates robust financial health, reducing reliance on debt and enhancing the company's ability to weather economic fluctuations.

Negative Factors

Recurring Losses

Ongoing losses hinder the company's ability to generate sustainable profits, impacting long-term viability and shareholder value.

Negative Cash Flows

Negative cash flows limit the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to operational continuity.

Operational Inefficiencies

Inability to maintain positive margins indicates inefficiencies that can erode competitiveness and profitability over time, requiring strategic improvements.

State Innovation Holdings Limited Business Overview & Revenue Model

Company Description

State Innovation Holdings Limited (8275) is a company focused on investing in and developing innovative technologies and solutions across various sectors, including renewable energy, smart city initiatives, and advanced manufacturing. The company aims to leverage technological advancements to create sustainable solutions that address modern challenges, offering products and services that enhance efficiency and reduce environmental impact.

How the Company Makes Money

State Innovation Holdings Limited generates revenue through multiple streams, including the sale of proprietary technologies and solutions developed in-house, as well as consulting services related to innovation and technology implementation. The company may also engage in partnerships with governmental and private entities to secure funding for projects, which can lead to additional revenue through grants or collaborative ventures. Furthermore, licensing agreements for its technologies can provide a steady income stream, while investment returns from its portfolio of innovative startups contribute to overall financial performance.

State Innovation Holdings Limited Financial Statement Overview

Summary

State Innovation Holdings Limited faces considerable financial challenges, with recurring losses, negative cash flows, and operational inefficiencies. Despite some improvements in the balance sheet, such as reduced debt and a strong equity ratio, the company's financial health is compromised by its inability to generate sustainable profits and positive cash flows.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.85M	158.55M	139.97M	135.10M	146.74M	141.79M
Gross Profit	8.67M	13.57M	34.93M	-6.97M	-23.40M	15.16M
EBITDA	-29.68M	-22.08M	17.09M	-17.45M	-30.00M	-1.62M
Net Income	-46.03M	-31.15M	8.35M	-26.76M	-37.80M	-14.71M
Balance Sheet
Total Assets	137.13M	137.13M	168.70M	128.47M	112.59M	132.69M
Cash, Cash Equivalents and Short-Term Investments	30.14M	30.14M	66.24M	12.16M	4.34M	7.53M
Total Debt	1.27M	1.27M	4.03M	7.47M	15.95M	35.44M
Total Liabilities	21.61M	21.61M	45.32M	56.17M	62.07M	77.93M
Stockholders Equity	115.53M	115.53M	123.38M	72.62M	50.53M	54.77M
Cash Flow
Free Cash Flow	-33.38M	-30.04M	-4.13M	-37.77M	-17.30M	1.12M
Operating Cash Flow	-32.82M	-26.69M	-2.35M	-19.84M	-9.65M	6.44M
Investing Cash Flow	-32.61M	-20.80M	-6.38M	-18.52M	-7.17M	3.31M
Financing Cash Flow	29.37M	19.58M	44.71M	39.55M	13.63M	-7.67M

State Innovation Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.11 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 65.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	54 Neutral	HK$206.00M	18.07	5.52%	―	―	―
8275	49 Neutral	HK$97.10M	―	-31.71%	―	-65.22%	-480.37%
1741	48 Neutral	HK$150.40M	-3.78	-47.66%	―	-34.70%	-388.24%
2221	48 Neutral	HK$212.62M	-2.17	-22.45%	―	47.91%	-2845.90%
6080	48 Neutral	HK$141.16M	―	-9.58%	―	-9.82%	-309.09%