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Sprocomm Intelligence Limited (HK:1401)
:1401
Hong Kong Market
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Sprocomm Intelligence Limited (1401) AI Stock Analysis

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HK:1401

Sprocomm Intelligence Limited

(1401)

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Neutral 50 (OpenAI - Gpt-5.6Sol)
Rating:50Neutral
Price Target:
HK$0.26
▲(0.00% Upside)
Action:Reiterated
Date:07/31/26
The score is held back primarily by weaker financial quality—especially sustained negative operating/free cash flow and a sharp increase in leverage—despite the 2025 revenue rebound and improved profitability. Technicals are mixed with the stock still below key longer-term moving averages, while valuation is a positive factor due to the low P/E.
Positive Factors
Revenue Reacceleration
The sharp 2025 revenue rebound indicates renewed demand and improved sales momentum. If sustained, stronger volume can support operating leverage and improve the company’s ability to absorb fixed costs over the next several quarters.
Negative Factors
Very Thin Profit Margins
Thin gross and net margins leave limited protection against component costs, pricing pressure, or execution setbacks. They also constrain retained earnings and make the business more dependent on sustained volume growth to support durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Reacceleration
The sharp 2025 revenue rebound indicates renewed demand and improved sales momentum. If sustained, stronger volume can support operating leverage and improve the company’s ability to absorb fixed costs over the next several quarters.
Read all positive factors

Sprocomm Intelligence Limited (1401) vs. iShares MSCI Hong Kong ETF (EWH)

Sprocomm Intelligence Limited Business Overview & Revenue Model

Company Description
Future Machine Limited, an investment holding company, engages in the research and development, design, manufacture, and sale of mobile phones, PCBAs for mobile phones, and IoT related products in the People’s Republic of China, India, Algeria, Ba...

Sprocomm Intelligence Limited Financial Statement Overview

Summary
Income statement shows a rebound in 2025 with revenue up sharply (+29.9% YoY) and a return to positive operating profit, but profitability remains very thin (gross margin ~8.3%, net margin ~1.0%). Balance sheet risk increased materially as leverage jumped (debt-to-equity ~4.8x), reducing financial resilience. Cash flow is the biggest drag: operating cash flow and free cash flow were negative in both 2024 and 2025, implying pressure on cash conversion and higher reliance on external funding.
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
22
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.35B2.92B2.82B1.45B2.00B
Gross Profit361.82M257.77M299.59M203.63M172.24M
EBITDA47.70M-3.19M110.69M591.00K-25.52M
Net Income41.42M16.34M32.37M6.51M-17.75M
Balance Sheet
Total Assets4.09B3.40B3.82B1.46B1.10B
Cash, Cash Equivalents and Short-Term Investments2.33B79.36M67.95M36.63M82.90M
Total Debt2.59B187.06M162.75M57.68M78.46M
Total Liabilities3.55B3.03B3.47B1.14B786.86M
Stockholders Equity536.78M368.14M352.08M320.22M315.92M
Cash Flow
Free Cash Flow-241.47M-45.69M1.57B547.36M18.23M
Operating Cash Flow-224.82M-27.12M1.57B555.86M21.35M
Investing Cash Flow-55.92M260.15M-1.59B-567.85M53.39M
Financing Cash Flow364.12M-222.28M47.69M-35.94M-17.35M

Sprocomm Intelligence Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.26
Price Trends
50DMA
0.25
Negative
100DMA
0.35
Negative
200DMA
0.58
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.64
Neutral
STOCH
23.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1401, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1401.

Sprocomm Intelligence Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$42.60B10.2820.29%2.99%13.78%33.46%
66
Neutral
HK$704.21B18.2812.35%5.72%-10.32%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
50
Neutral
HK$367.50M5.1611.38%68.79%229.17%
47
Neutral
HK$7.78B7.604.78%2.76%5.05%241.01%
45
Neutral
HK$229.95M-8.56-5.13%4.44%-14.71%37.97%
43
Neutral
HK$226.82M-2.09-5.19%0.57%-16.64%55.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1401
Sprocomm Intelligence Limited
0.25
-0.59
-70.48%
HK:0751
Skyworth Digital Holdings
4.09
0.17
4.21%
HK:2369
Coolpad Group
0.53
-0.79
-59.92%
HK:1070
TCL Electronics Holdings
16.65
6.67
66.87%
HK:1810
Xiaomi
26.92
-28.03
-51.01%
HK:0927
Fujikon Industrial Holdings Limited
0.45
-0.25
-35.99%

Sprocomm Intelligence Limited Corporate Events

Future Machine Details Capital Increase in Loss-Making Target Company
Aug 19, 2026
Future Machine Limited has released supplementary details on a disclosable transaction involving a capital injection into a target company, whose unaudited consolidated net asset value stood at approximately RMB73,966 thousand as of 31 December 20...
Future Machine flags sharp profit jump on surging smart device sales in India
Aug 18, 2026
Future Machine Limited has issued a positive profit alert, indicating that its consolidated net profit for the six months ended 30 June 2026 is expected to be at least RMB30 million, up about 160.9% from RMB11.5 million a year earlier. The improve...
Future Machine Schedules Board Meeting to Approve Interim Results and Consider Dividend
Aug 17, 2026
Future Machine Limited has announced that its board of directors will convene a meeting on 28 August 2026 to review and approve the interim results for the six months ended 30 June 2026 for the company and its subsidiaries. The board will also con...
Future Machine Enters Fourth Angel Round With RMB20 Million Minority Investment
Aug 13, 2026
Future Machine Limited, via its indirect wholly owned subsidiary Interstellar Quantum, has agreed to subscribe RMB20 million for RMB50,073.57 of newly issued registered capital in a fourth angel-round financing of an unnamed target company, alongs...
Future Machine Shareholders Approve All Resolutions at 2026 AGM
May 29, 2026
Future Machine Limited reported that all resolutions at its 2026 annual general meeting on 29 May 2026 were approved by shareholders by way of poll. Shareholders representing 519,714,190 shares voted, with no mandatory abstentions, and all directo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026