Sprocomm Intelligence Limited (1401) AI Stock Analysis

• Market Cap: HK$1.49B
• Dividend Yield: N/A
• Average Volume (3M): 7.18M
• Price to Earnings (P/E): 73.9
• Beta (1Y): 0.29
• Revenue Growth: 2.36%
• EPS Growth: -50.00%
• Country: HK
• Employees: 1,414
• Sector: Technology
• Sector Strength: 94
• Industry: Consumer Electronics
• EPS (TTM): <0.01
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 10,260,972
• 30 Day Avg. Volume: 7,175,684
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 55 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

Sprocomm Intelligence Limited's overall stock score is primarily impacted by its financial performance and valuation concerns. The company faces significant financial challenges, including declining revenue and profit margins, increased leverage, and potential liquidity risks due to cash flow issues. The high P/E ratio suggests overvaluation, further weighing down the score. Technical analysis provides a mixed view, with some short-term bullish indicators, but the overall trend remains bearish.

Sprocomm Intelligence Limited Business Overview & Revenue Model

Company Description

Future Machine Limited is an investment holding company engaged in R&D, design, manufacturing, and sale of mobile phones, PCBAs, and IoT-related products across China, India, Algeria, Bangladesh, and internationally. Also involved in cloud computing, trading of mobile devices and auto/education tools, and provision of customer/technical support services; changed name in July 2025 to Future Machine Limited from Sprocomm Intelligence.

How the Company Makes Money

Sprocomm Intelligence Limited generates revenue through the sale of its mobile communication devices, primarily smartphones. The company's key revenue streams include direct sales to consumers and partnerships with telecommunications providers for bundled sales and distribution. Additionally, Sprocomm Intelligence may engage in business-to-business sales, offering its products to wholesalers and retailers. The company leverages its research and development capabilities to produce competitive, technologically advanced products, which contribute to its earnings. Significant partnerships with component suppliers and technology firms also play a crucial role in optimizing production costs and enhancing product features, thereby influencing its profitability.

Sprocomm Intelligence Limited Financial Statement Overview

Summary

Sprocomm Intelligence Limited faces challenges across its financial statements. The income statement shows declining revenue and profit margins, reflecting operational headwinds. The balance sheet reveals increased leverage and a low equity ratio, which may affect financial stability. Cash flow issues are particularly concerning, with missing data suggesting potential liquidity risks.

Income Statement

Sprocomm Intelligence Limited exhibited a mixed performance. The gross profit margin for 2024 is approximately 8.83%, which is a decline from 10.61% in 2023, indicating decreased efficiency in cost management. The net profit margin improved to 0.56% from 1.15% in 2023, highlighting better bottom-line management despite lower revenues. Revenue growth was negative at -3.16% from 2023 to 2024, showing a decline in sales, but the EBIT and EBITDA margins both turned negative, reflecting challenges in operational profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.51, which is manageable but has increased from 0.46 in 2023. The return on equity (ROE) was 4.44%, a decrease from 9.19% in 2023, indicating lower efficiency in generating profits from equity. The equity ratio stands at 10.84%, suggesting a low proportion of assets financed by equity, pointing to potential stability risks if liabilities grow.

Cash Flow

Cash flow statements show that the company did not report any operating or free cash flow for 2024, a significant drop from 2023's strong free cash flow of $1.565 billion. This absence of cash flow data indicates potential liquidity issues or unreported cash movements. The operating cash flow to net income and free cash flow to net income ratios cannot be evaluated due to missing data, raising concerns about cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.92B	2.82B	1.45B	2.00B	2.18B
Gross Profit	299.59M	257.77M	299.59M	203.63M	172.24M	193.42M
EBITDA	51.27M	-3.19M	110.69M	591.00K	-25.52M	-674.00K
Net Income	32.37M	16.34M	32.37M	6.51M	-17.75M	30.88M
Balance Sheet
Total Assets	3.82B	3.40B	3.82B	1.46B	1.10B	1.21B
Cash, Cash Equivalents and Short-Term Investments	67.95M	79.36M	67.95M	36.63M	82.90M	28.10M
Total Debt	162.75M	187.06M	162.75M	57.68M	78.46M	60.17M
Total Liabilities	3.47B	3.03B	3.47B	1.14B	786.86M	872.34M
Stockholders Equity	352.08M	368.14M	352.08M	320.22M	315.92M	333.34M
Cash Flow
Free Cash Flow	1.57B	-45.69M	1.57B	547.36M	18.23M	-70.67M
Operating Cash Flow	1.57B	-27.12M	1.57B	555.86M	21.35M	-40.15M
Investing Cash Flow	-1.59B	260.15M	-1.59B	-567.85M	53.39M	79.32M
Financing Cash Flow	47.69M	-222.28M	47.69M	-35.94M	-17.35M	-138.03M

Sprocomm Intelligence Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 50DMA: Positive
• 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:1401, the sentiment is Positive. The current price of 0.99 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.89, and below the 200-day MA of 1.99, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	€28.36B	17.86	-1.42%	2.44%	6.10%	29.62%
1401	55 Neutral	HK$1.49B	73.88	4.55%	―	2.36%	-50.00%
SWDHF	―	$748.18M	13.13	3.12%	2.28%	―	―
CHWTF	―	$61.83M	―	-12.94%	―	―	―
TCLHF	―	$3.24B	13.95	10.36%	3.26%	―	―
XIACF	―	$178.55B	39.03	14.98%	―	―	―
6133	39 Underperform	HK$209.10M	―	-4.27%	―	25.25%	0.74%

Sprocomm Intelligence Limited Corporate Events

Future Machine Limited Announces HK$140 Million Rights Issue

Future Machine Limited has announced a proposed rights issue to raise approximately HK$140 million by offering 500,000,000 rights shares at a subscription price of HK$0.28 per share. This initiative aims to strengthen the company’s capital base, although it is subject to certain conditions, including stock exchange approvals. The rights issue will be conducted on a non-underwritten basis, and if undersubscribed, the size of the issue will be reduced, potentially diluting the shareholdings of non-participating shareholders.

Sprocomm Intelligence Limited Forms Nomination Committee to Enhance Governance

Sprocomm Intelligence Limited has established a Nomination Committee within its Board of Directors to enhance its governance structure. The committee, formed by a board resolution on October 18, 2019, is composed of at least three members, primarily independent non-executive directors, and includes a requirement for gender diversity among its members. This move is likely to strengthen the company’s leadership selection process and promote diversity, potentially impacting its corporate governance positively.

Sprocomm Intelligence Unanimously Passes 2025 AGM Resolutions

Sprocomm Intelligence Limited announced that all resolutions proposed at its 2025 Annual General Meeting were passed unanimously by shareholders. This includes the re-election of several directors, approval of financial statements, and granting a mandate for issuing additional shares, reflecting strong shareholder support and potentially enhancing the company’s governance and operational capabilities.