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Sprocomm Intelligence Limited (1401) AI Stock Analysis
Sprocomm Intelligence Limited
(HKEX:1401)
The overall score is held down primarily by fragile financial performance: despite strong revenue growth and net income recovery, very thin margins, a rapid build-up of debt to a 4.8x debt-to-equity ratio, and deeply negative operating and free cash flow create significant balance sheet and liquidity risk. Technicals offer only modest support, with short-term price action stabilizing above key moving averages but within a broader downtrend and neutral momentum. A low absolute P/E partially offsets these concerns, suggesting cautious valuation, but without dividend income and given the financial strain, the risk profile keeps the stock in the lower half of the scoring range.
Sprocomm Intelligence Limited (1401) vs. iShares MSCI Hong Kong ETF (EWH)
- 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
Robust revenue growth of 30% in 2025 and net income improvement from $16M to $40M support the score, but very thin and volatile margins, a debt surge to $2.6B with debt-to-equity at 4.8x, and a sharp swing to deeply negative operating cash flow of -$225M and free cash flow of -$241M indicate material leverage and liquidity risk.
Income Statement
65PositiveBalance Sheet
35NegativeCash Flow
25Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.33B | 4.35B | 2.92B | 2.82B | 1.45B | 2.00B |
| Gross Profit | 425.78M | 361.82M | 257.77M | 299.59M | 203.63M | 172.24M |
| EBITDA | 87.53M | 55.96M | 11.93M | 110.69M | 13.03M | -11.28M |
| Net Income | 62.93M | 41.42M | 16.34M | 32.37M | 6.51M | -17.75M |
Balance Sheet | ||||||
| Total Assets | 4.22B | 4.09B | 3.40B | 3.82B | 1.46B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00B | 2.33B | 79.36M | 67.95M | 36.63M | 82.90M |
| Total Debt | 2.41B | 2.59B | 187.06M | 162.75M | 57.68M | 78.46M |
| Total Liabilities | 3.65B | 3.55B | 3.03B | 3.47B | 1.14B | 786.86M |
| Stockholders Equity | 569.01M | 536.78M | 368.14M | 352.08M | 320.22M | 315.92M |
Cash Flow | ||||||
| Free Cash Flow | -294.70M | -241.47M | -45.69M | 1.57B | 547.36M | 18.23M |
| Operating Cash Flow | -271.59M | -224.82M | -27.12M | 1.57B | 555.86M | 21.35M |
| Investing Cash Flow | -11.28M | -55.92M | 260.15M | -1.59B | -567.85M | 53.39M |
| Financing Cash Flow | 348.41M | 364.12M | -222.28M | 47.69M | -35.94M | -17.35M |
Sprocomm Intelligence Limited Technical Analysis
Price Trends
Market Momentum
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
HK:107067Neutral
HK:181066Neutral
HK:075150Neutral- HK:140149Neutral
HK:092743Neutral
HK:236938Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1070 | 67Neutral | HKD 38.32B | 9.38 | 20.29% | 3.28% | 13.78% | 33.46% |
| HK:1810 | 66Neutral | HKD 676.65B | 17.66 | 12.35% | ― | 5.72% | -10.32% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HK:0751 | 50Neutral | HKD 6.06B | 5.92 | 4.82% | ― | 5.05% | 241.01% |
| HK:1401 | 49Neutral | HKD 382.50M | 5.33 | 11.38% | ― | 68.79% | 229.17% |
| HK:0927 | 43Neutral | HKD 212.07M | -7.89 | -5.13% | 4.82% | -14.71% | 37.97% |
| HK:2369 | 38Underperform | HKD 177.08M | -1.77 | -5.19% | ― | -16.64% | 55.52% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1401 | Sprocomm Intelligence Limited | 0.26 | -0.42 | -61.94% | |
| HK:0751 | Skyworth Digital Holdings | 3.21 | -0.81 | -20.15% | |
| HK:2369 | Coolpad Group | 0.45 | -0.63 | -58.41% | |
| HK:1070 | TCL Electronics Holdings | 15.20 | 6.28 | 70.40% | |
| HK:1810 | Xiaomi Corp Class B | 26.48 | -18.24 | -40.79% | |
| HK:0927 | Fujikon Industrial Holdings Limited | 0.41 | -0.24 | -36.64% |
Sprocomm Intelligence Limited Corporate Events
Future Machine Limited Nearly Triples Interim Profit on Surging Revenue
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
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
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
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
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...
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