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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 51 (OpenAI - Gpt-5.6Sol)
Rating:51Neutral
Price Target:
HK$0.27
▲(2.31% 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 Rebound
The 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 Increase
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound
The 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.
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
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
56
Neutral
Balance Sheet
28
Negative
Cash Flow
22
Negative
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 Sentiment
Positive
Last Price0.26
Price Trends
50DMA
0.25
Positive
100DMA
0.26
Positive
200DMA
0.55
Negative
Market Momentum
MACD
<0.01
Negative
RSI
60.90
Neutral
STOCH
67.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1401, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.25, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$45.38B10.6020.29%2.90%13.78%33.46%
66
Neutral
HK$611.72B15.9112.35%―5.72%-10.32%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
51
Neutral
HK$405.00M5.6811.38%―68.79%229.17%
51
Neutral
HK$5.43B5.694.82%2.76%5.05%241.01%
43
Neutral
HK$217.18M-8.08-5.13%4.71%-14.71%37.97%
42
Neutral
HK$194.99M-1.93-5.19%0.57%-16.64%55.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1401
Sprocomm Intelligence Limited
0.27
-0.45
-62.50%
HK:0751
Skyworth Digital Holdings
3.07
-1.56
-33.66%
HK:2369
Coolpad Group
0.49
-0.78
-61.51%
HK:1070
TCL Electronics Holdings
17.18
6.80
65.48%
HK:1810
Xiaomi
23.66
-29.69
-55.65%
HK:0927
Fujikon Industrial Holdings Limited
0.43
-0.24
-36.09%

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% ...
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...
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