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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 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
HK$0.22
▼(-66.67% Downside)
Action:Reiterated
Date:06/27/26
The score is held down primarily by weakened financial quality—highly increased leverage and two consecutive years of negative operating/free cash flow—despite improved 2025 revenue growth and a return to operating profitability. Technically, the stock remains in a strong downtrend below all major moving averages, while valuation is a partial offset due to a low P/E.
Positive Factors
Revenue re-acceleration
A sharp 2025 revenue rebound and return to operating profit indicate recovering demand and improved project wins. Over 2-6 months this supports utilization of technical teams, strengthens backlog conversion potential, and gives management runway to improve margins and operational execution.
Negative Factors
Dramatic leverage increase
A rapid jump in leverage materially weakens balance-sheet resilience. High debt amplifies refinancing and interest-rate risk, constrains operational flexibility and bidding capacity for large contracts, and leaves the company vulnerable to even modest revenue or working-capital shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration
A sharp 2025 revenue rebound and return to operating profit indicate recovering demand and improved project wins. Over 2-6 months this supports utilization of technical teams, strengthens backlog conversion potential, and gives management runway to improve margins and operational execution.
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...
How the Company Makes Money
Sprocomm Intelligence Limited primarily makes money by selling telecommunications/ICT solutions through project-based delivery and related services. Key revenue streams typically include: (1) revenue from supplying network/communications hardware ...

Sprocomm Intelligence Limited Financial Statement Overview

Summary
Despite a sharp 2025 revenue re-acceleration (+29.9% YoY) and a return to positive operating profit, overall financial quality is weak due to very thin profitability (gross margin ~8.3%, net margin ~1.0%), a large leverage jump (debt-to-equity ~4.8x), and sustained negative operating and free cash flow in 2024–2025.
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
22
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.35B2.92B2.82B1.45B2.00B
Gross Profit361.82M257.77M299.59M203.63M172.24M
EBITDA47.70M-3.19M110.69M591.00K-25.52M
Net Income41.42M16.34M32.37M6.51M-17.75M
Balance Sheet
Total Assets4.09B3.40B3.82B1.46B1.10B
Cash, Cash Equivalents and Short-Term Investments2.33B79.36M67.95M36.63M82.90M
Total Debt2.59B187.06M162.75M57.68M78.46M
Total Liabilities3.55B3.03B3.47B1.14B786.86M
Stockholders Equity536.78M368.14M352.08M320.22M315.92M
Cash Flow
Free Cash Flow-241.47M-45.69M1.57B547.36M18.23M
Operating Cash Flow-224.82M-27.12M1.57B555.86M21.35M
Investing Cash Flow-55.92M260.15M-1.59B-567.85M53.39M
Financing Cash Flow364.12M-222.28M47.69M-35.94M-17.35M

Sprocomm Intelligence Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.66
Price Trends
50DMA
0.46
Negative
100DMA
0.73
Negative
200DMA
0.70
Negative
Market Momentum
MACD
-0.06
Negative
RSI
21.38
Positive
STOCH
12.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1401, the sentiment is Negative. The current price of 0.66 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.46, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 21.38 is Positive, neither overbought nor oversold. The STOCH value of 12.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
77
Outperform
HK$32.49B10.5717.01%2.96%15.36%42.66%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
HK$554.41B13.7613.50%12.77%14.09%
54
Neutral
HK$242.73M-9.03-11.38%8.70%-14.71%37.97%
47
Neutral
HK$7.97B19.552.04%8.16%-26.27%
44
Neutral
HK$355.50M6.839.04%49.51%135.82%
43
Neutral
HK$212.44M-2.28-13.04%-45.30%53.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1401
Sprocomm Intelligence Limited
0.24
-0.54
-69.62%
HK:0751
Skyworth Digital Holdings
4.22
1.15
37.46%
HK:2369
Coolpad Group
0.64
-0.14
-17.95%
HK:1070
TCL Electronics Holdings
12.89
4.00
44.98%
HK:1810
Xiaomi
21.64
-38.31
-63.90%
HK:0927
Fujikon Industrial Holdings Limited
0.48
-0.16
-25.08%

Sprocomm Intelligence Limited Corporate Events

Future Machine Shareholders Approve All Resolutions at 2026 AGM
May 29, 2026
Future Machine Limited reported that all resolutions at its 2026 annual general meeting on 29 May 2026 were approved by shareholders by way of poll. Shareholders representing 519,714,190 shares voted, with no mandatory abstentions, and all directo...
Future Machine Sets 2026 AGM to Approve 2025 Results, Board Mandates and Share Issuance Authority
Apr 17, 2026
Future Machine Limited has convened its 2026 annual general meeting for 29 May 2026 in Shenzhen, where shareholders will review and approve the audited consolidated financial statements for the year ended 31 December 2025 and the reports of the bo...
Future Machine Limited Details Board and Committee Structure
Mar 31, 2026
Future Machine Limited has announced the current composition of its board of directors, led by chairman and chief executive officer Li Chengjun, alongside five other executive directors and four independent non-executive directors. The update sets...
Future Machine Announces Resignation of Independent Non-Executive Director
Mar 31, 2026
Future Machine Limited announced that independent non-executive director Mr. Ching Khei Cheong Christopher has resigned from the board, as well as from the audit and remuneration committees, effective 31 March 2026. The company said his departure ...
Future Machine Nearly Triples Annual Profit on Surging Revenue in 2025
Mar 27, 2026
Future Machine Limited reported a sharp rise in revenue to RMB4.35 billion for the year ended 31 December 2025, up from RMB2.92 billion a year earlier, reflecting strong top-line expansion despite a slight decline in gross margin to 8.3%. The grou...
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: Jun 27, 2026