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 / healthy equity ratio

An improving debt-to-equity profile and a healthy equity ratio reduce refinancing and solvency risk over the medium term. This structural stability gives management room to pursue contracts or restructurings, supports creditor confidence, and lowers bankruptcy probability despite operating losses.

Demonstrated capacity to grow revenue in 2024

A notable 2024 revenue increase shows the company can win work and scale top line under the right conditions. For an engineering & construction firm, this suggests intact commercial capability and contract pipeline potential, which supports a recovery pathway if execution and margins improve.

Lean operating headcount (low fixed cost base)

A small headcount implies a lower fixed-cost structure and operational flexibility typical in asset-light contractors relying on subcontracting. This structural cost profile helps conserve cash, adjust staffing to project flow, and limits permanent overhead while management pursues margin recovery.

Negative Factors

Recurring net losses and negative margins

Sustained net losses and negative margins are core structural problems that erode equity and limit reinvestment. Over the medium term these losses undermine return on capital, constrain hiring or bidding capacity for large projects, and raise the bar for credible operational turnaround.

Persistent negative operating and free cash flow

Continued negative operating and free cash flows signal recurring liquidity leakage and reliance on external financing. This constrains the firm's ability to fund working capital for projects, limits capital expenditures, and increases counterparty and supplier risk over the next several months.

Sharp revenue and EPS declines

Steep revenue and EPS declines reflect weakening demand, lost contracts or pricing pressure and amplify execution risk. Such severe deterioration makes margin recovery harder, complicates creditor negotiations, and heightens the probability that operational fixes will be needed to restore sustainable profitability.

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%