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Sprocomm Intelligence Limited (1401) AI Stock Analysis

HK:1401

Sprocomm Intelligence Limited

(HKEX:1401)

Select Model
Rating:51Neutral
Price Target:HKD 0.27â–²(4.31% Upside)
Action:reiterated
Date:10/07/26

The score is held back primarily by weakened financial quality—especially the sharp increase in leverage and negative operating/free cash flow despite the revenue rebound and return to operating profit. Technicals are moderately supportive (above shorter moving averages with neutral RSI), and valuation appears inexpensive on P/E, but these positives are outweighed by balance sheet and cash conversion risk.

Positive Factors
Revenue ReboundThe renewed revenue growth indicates improving demand and business activity after a stagnant prior year. If maintained, stronger sales can support operating leverage, improve resource utilization, and provide a foundation for earnings recovery over the next several quarters.
Negative Factors
Sharp Leverage IncreaseThe dramatic increase in leverage materially reduces balance-sheet resilience and leaves the company more exposed to earnings or working-capital volatility. Higher debt can also constrain capital allocation and increase dependence on financing while the business works to rebuild profitability.

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

-75%-50%-25%0%25%50%75%100%HK:1401-60.77%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 382.50M
Dividend Yield
―
Average Volume (3M)
4.22M
Price to Earnings (P/E)
5.3
Beta (1Y)
0.48
Revenue Growth
68.79%
EPS Growth
229.17%
Country
Hong Kong
Employees
1,495
Sector
Technology
Sector Strength
61
Industry
Communication Equipment

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, Bangl...

Sprocomm Intelligence Limited Financial Statement Overview

Summary

Revenue rebounded strongly in 2025 (+29.9% YoY) and the company returned to positive operating profit, but overall quality is weakened by very thin margins (gross ~8.3%, net ~1.0%), a sharp leverage jump (debt-to-equity ~4.8x), and sustained negative operating/free cash flow in 2024–2025—raising funding and resilience risk.

Income Statement

56Neutral

Balance Sheet

28Negative

Cash Flow

22Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.33B4.35B2.92B2.82B1.45B2.00B
Gross Profit425.78M361.82M257.77M299.59M203.63M172.24M
EBITDA87.53M55.96M11.93M110.69M13.03M-11.28M
Net Income62.93M41.42M16.34M32.37M6.51M-17.75M
Balance Sheet
Total Assets4.22B4.09B3.40B3.82B1.46B1.10B
Cash, Cash Equivalents and Short-Term Investments2.00B2.33B79.36M67.95M36.63M82.90M
Total Debt2.41B2.59B187.06M162.75M57.68M78.46M
Total Liabilities3.65B3.55B3.03B3.47B1.14B786.86M
Stockholders Equity569.01M536.78M368.14M352.08M320.22M315.92M
Cash Flow
Free Cash Flow-294.70M-241.47M-45.69M1.57B547.36M18.23M
Operating Cash Flow-271.59M-224.82M-27.12M1.57B555.86M21.35M
Investing Cash Flow-11.28M-55.92M260.15M-1.59B-567.85M53.39M
Financing Cash Flow348.41M364.12M-222.28M47.69M-35.94M-17.35M

Sprocomm Intelligence Limited Technical Analysis

Technical Analysis SentimentNeutral
Last Price0.26

Price Trends

50DMA0.25Positive
100DMA0.25Positive
200DMA0.52Negative

Market Momentum

MACD0.00Positive
RSI51.10Neutral
STOCH28.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1401, the sentiment is Neutral. The current price of 0.26 is below the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1401.

Sprocomm Intelligence Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:1401 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1070HK:107067NeutralHKD 38.32B9.3820.29%3.28%13.78%33.46%
HK:1810HK:181066NeutralHKD 676.65B17.6612.35%―5.72%-10.32%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
HK:1401HK:140151NeutralHKD 382.50M5.3311.38%―68.79%229.17%
HK:0751HK:075150NeutralHKD 6.06B5.924.82%―5.05%241.01%
HK:0927HK:092743NeutralHKD 212.07M-7.89-5.13%4.82%-14.71%37.97%
HK:2369HK:236938UnderperformHKD 177.08M-1.77-5.19%―-16.64%55.52%

* Technology Sector Average

Performance Comparison

-50%0%50%100%HK:1401HK:0751HK:2369HK:1070HK:1810HK:0927Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1401 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1401Sprocomm Intelligence Limited0.26-0.42-61.94%
HK:0751Skyworth Digital Holdings3.21-0.81-20.15%
HK:2369Coolpad Group 0.45-0.63-58.41%
HK:1070TCL Electronics Holdings 15.206.2870.40%
HK:1810Xiaomi Corp Class B26.48-18.24-40.79%
HK:0927Fujikon Industrial Holdings Limited0.41-0.24-36.64%

Sprocomm Intelligence Limited Corporate Events

Future Machine Limited Nearly Triples Interim Profit on Surging Revenue

Aug 28, 2026

Future Machine Limited reported a sharp increase in interim revenue to RMB2.57 billion for the six months ended 30 June 2026, up from RMB1.60 billion a year earlier. Gross profit rose to RMB199.5 million, although the gross margin slipped to 7.8% fro...

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 2025....

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 improvemen...

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 consid...

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, alongside...

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: Oct 07, 2026