Suncorp Technologies (1063) AI Stock Analysis

• Market Cap: HK$153.85M
• Dividend Yield: N/A
• Average Volume (3M): 170.35K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.96
• Revenue Growth: 9.69%
• EPS Growth: -33.79%
• Country: HK
• Employees: 12
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.01
• Shares Outstanding: 1,538,536,600
• 10 Day Avg. Volume: 100,530
• 30 Day Avg. Volume: 170,346
• PEG Ratio: 0.02
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 5.62
• P/FCF Ratio: -44.52
• 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: 45 Neutral
• Price Target: HK$0.10 ▲(1.00% Upside)

The score is held down primarily by weak financial performance (sharp revenue decline, large losses, and negative cash flows). Technicals add modest pressure with price below key longer-term moving averages and a negative MACD. Valuation is a mild offset due to a relatively low P/E, but lacks dividend support.

Positive Factors

Strong Balance Sheet / Low Leverage

An 85.8% equity ratio and minimal debt provide durable financial flexibility, allowing the company to fund operations, absorb shocks, or invest selectively without immediate external financing. This structural balance sheet strength supports a longer runway for strategic recovery or growth initiatives.

Recurring Subscription Revenue

A subscription-based cloud model creates a stable recurring revenue base that improves predictability and customer lifetime value. Over the medium term this supports better revenue visibility, higher retention incentives, and a platform to upsell services, strengthening long-term cash flow potential.

Strategic Technology Partnerships

Partnerships with key technology providers enable co-development, expanded distribution channels, and faster product enhancements. Structurally, these alliances lower go-to-market costs, broaden addressable markets across finance, healthcare, and retail, and help sustain competitive positioning over time.

Negative Factors

Sharp Multi-Year Revenue Decline

A severe top-line contraction over several years erodes scale and operating leverage, making fixed costs harder to cover and reducing bargaining power with clients and suppliers. This structural revenue decline heightens execution risk and complicates any path to sustainable profitability absent clear turnaround drivers.

Sustained Negative Operating Cash Flow

Persistent negative operating and free cash flows indicate the business cannot fund operations or invest from internal cash generation. Over months this forces reliance on external financing or asset sales, increases refinancing and dilution risk, and constrains the company's ability to invest in product development or sales capacity.

Deep Negative Profitability Margins

Severely negative gross and operating margins point to structural issues in pricing, cost of services, or delivery efficiency. Such economics are unsustainable long term and imply the company must materially restructure costs or restore meaningful revenue growth to achieve durable profitability and viable cash generation.

Suncorp Technologies Business Overview & Revenue Model

Company Description

Suncorp Technologies Limited, an investment holding company, markets and sells residential telephone and related products in Hong Kong. It also engages in processing and trading of used computer-related components, such as integrated circuit chips, hard disks, and motherboards; and B2B cross-border e-commerce business. In addition, the company provides money lending, securities brokerage, and placing and underwriting services. It operates in the People's Republic of China, Australia, India, Indonesia, Korea, Spain, the United States, and internationally. Suncorp Technologies Limited was incorporated in 1994 and is based in Central, Hong Kong.

How the Company Makes Money

Suncorp Technologies generates revenue primarily through the sale of its software products and IT services. The company operates on a subscription-based model for its cloud services and software solutions, which provides a steady stream of recurring income. Additionally, Suncorp earns significant revenue from professional services such as consulting, implementation, and support, which are billed on a project basis. The company has established strategic partnerships with key technology providers, enabling it to enhance its offerings and expand its market reach. These partnerships often involve co-development agreements and joint marketing initiatives, contributing to increased sales and customer acquisition. Furthermore, the company capitalizes on industry trends such as digital transformation and the increasing demand for data-driven solutions, positioning itself to capture new market opportunities.

Suncorp Technologies Financial Statement Overview

Summary

Overall financials are weak: revenue has fallen sharply (2020 to 2024) with deeply negative margins (gross, EBIT, and net) and negative operating/free cash flow. The balance sheet is a partial offset with low leverage and a high equity ratio, but equity has trended down materially over time.

Income Statement

Suncorp Technologies has experienced a significant decline in revenue over recent years, with a revenue decrease from $173.7 million in 2020 to $38.9 million in 2024. The company has also shown negative profitability margins, with a gross profit margin of -31.3% and a net profit margin of -116.7% in 2024. These metrics indicate substantial challenges in generating profitable revenue and managing costs effectively. The negative EBIT margin of -117.2% further highlights operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate level of stability with a strong cash position. The debt-to-equity ratio remains low due to minimal debt levels, and the equity ratio stands at 85.8% in 2024, reflecting a strong equity base. However, the continuous decrease in stockholders' equity from $308.9 million in 2019 to $198.5 million in 2024 signals potential financial strain over the years.

Cash Flow

The company exhibits negative operating and free cash flows, indicating challenges in sustaining its operations through internal cash generation. The operating cash flow to net income ratio suggests difficulties in converting earnings into cash, which may hinder future growth and investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.84M	38.88M	66.29M	128.03M	199.97M	173.69M
Gross Profit	-12.21M	-12.18M	15.20M	16.00M	25.34M	25.59M
EBITDA	0.00	-36.53M	40.45M	-56.78M	-55.65M	-70.14M
Net Income	14.81M	-45.38M	40.07M	-56.99M	-58.84M	-70.11M
Balance Sheet
Total Assets	278.74M	231.47M	264.02M	282.17M	328.98M	299.15M
Cash, Cash Equivalents and Short-Term Investments	118.53M	110.85M	106.64M	101.82M	140.16M	82.67M
Total Debt	7.21M	3.15M	2.15M	4.24M	6.27M	4.26M
Total Liabilities	59.44M	33.56M	20.75M	78.97M	71.97M	44.12M
Stockholders Equity	219.88M	198.49M	243.73M	203.66M	257.10M	255.03M
Cash Flow
Free Cash Flow	-7.97M	-4.91M	-3.25M	-27.42M	-24.55M	-23.66M
Operating Cash Flow	-7.97M	-4.91M	-3.25M	-27.42M	-22.23M	-23.66M
Investing Cash Flow	123.00K	36.00K	-54.00K	-132.00K	-2.31M	0.00
Financing Cash Flow	3.12M	-1.88M	-2.03M	1.52M	55.81M	15.10M

Suncorp Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1063, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 39.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1063.

Suncorp Technologies 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%
2182	54 Neutral	HK$223.20M	-12.90	-2.30%	4.00%	7.98%	-236.14%
0118	50 Neutral	HK$161.18M	17.31	0.53%	―	-9.32%	―
0474	50 Neutral	HK$863.67M	-2.20	-63.64%	―	-64.04%	1.66%
0862	48 Neutral	HK$313.94M	-5.59	-33.36%	―	-25.59%	0.69%
0138	46 Neutral	HK$108.78M	-0.25	-65.19%	―	-19.75%	31.54%
1063	45 Neutral	HK$153.85M	10.42	7.00%	―	9.69%	-33.79%