Sprocomm Intelligence Limited (1401) AI Stock Analysis

• Market Cap: HK$1.01B
• Dividend Yield: N/A
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 57.1
• Beta (1Y): 0.42
• Revenue Growth: 2.36%
• EPS Growth: -50.14%
• Country: HK
• Employees: 1,414
• Sector: Technology
• Sector Strength: 93
• Industry: Consumer Electronics
• EPS (TTM): <0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 3,763,600
• 30 Day Avg. Volume: 3,098,200
• PEG Ratio: 0.15
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.64
• 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: 50 Neutral
• Price Target: HK$1.00 ▼(-0.99%Downside)

Sprocomm Intelligence Limited scores low due to significant financial challenges, including declining profitability and potential liquidity risks. Technical analysis shows bearish momentum, and the high P/E ratio suggests overvaluation. The lack of earnings call data and corporate events further limits the assessment, emphasizing the need for improvement in financial and operational performance.

Sprocomm Intelligence Limited Business Overview & Revenue Model

Company Description

Sprocomm Intelligence Limited, an investment holding company, engages in the research and development, design, manufacture, and sale of mobile phones in the People's Republic of China, India, Algeria, Pakistan, Bangladesh, and internationally. The company offers smartphones and feature phones; printed circuit board assemblies for mobile phones; and Internet of Things related products. It is also involved in the research and development of cloud computing and related technology; trade of smartphones and feature phones; development of software; and provision of customer and technical support services. The company serves local branded mobile phone suppliers, telecommunication operators, and trading companies. Sprocomm Intelligence Limited was founded in 2009 and is headquartered in Shenzhen, China.

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: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 1.01 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.27, and below the 200-day MA of 2.91, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 28.48 is Positive, neither overbought nor oversold. The STOCH value of 16.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1401	50 Neutral	HK$1.01B	57.06	4.55%	―	2.36%	-50.14%
Sector *	50 Neutral	C$3.01B	2.40	-63.12%	2.48%	4.49%	-6.07%
SWDHF	―	$774.72M	13.13	3.12%	2.28%	―	―
CHWTF	―	$46.44M	―	-12.94%	―	―	―
TCLHF	―	$3.24B	14.39	10.36%	3.06%	―	―
XIACF	―	$190.52B	43.53	14.98%	―	―	―
6133	42 Neutral	HK$233.75M	―	-4.27%	―	25.25%	0.74%

Sprocomm Intelligence Limited Corporate Events

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.

Sprocomm Intelligence Schedules 2025 AGM to Discuss Key Resolutions

Sprocomm Intelligence Limited has announced its 2025 Annual General Meeting (AGM) scheduled for May 30, 2025, in Shenzhen, China. The meeting will address several key resolutions, including the approval of the 2024 financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks authorization to allot and issue new shares, which could potentially impact its capital structure and shareholder value.

Sprocomm Intelligence Proposes Name Change to Future Machine Limited

Sprocomm Intelligence Limited has proposed to change its English name to Future Machine Limited and adopt a new Chinese name. This change is intended to better reflect the company’s future business plans and development, providing a new corporate image and identity. The name change is subject to shareholder approval and regulatory consent in the Cayman Islands. The change will not affect shareholder rights, daily operations, or financial position, and existing share certificates will remain valid. The company plans to update its stock short name on the Hong Kong Stock Exchange following the change.