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Sprocomm Intelligence Limited (HK:1401)
:1401
Hong Kong Market

Sprocomm Intelligence Limited (1401) AI Stock Analysis

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HK:1401

Sprocomm Intelligence Limited

(1401)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
HK$1.00
▲(51.52% Upside)
Action:ReiteratedDate:01/30/26
The score is driven down primarily by weaker financial performance (declining revenue, negative operating margins, and missing 2024 cash flow data). Technicals are supportive due to a strong trend above moving averages, but overbought signals temper the outlook. Valuation is a notable headwind given the very high P/E and no dividend yield data.
Positive Factors
Telecom infrastructure services exposure
Core focus on wireless telecom network deployment and engineering gives durable demand exposure to network rollouts, maintenance, and upgrades. Structural 5G/coverage investments and operator capex cycles support recurring service needs and long-term contract opportunities.
Negative Factors
Revenue decline
A multi-digit revenue decline signals weakening demand or lost share in core services, eroding scale advantages. Sustained top-line contraction constrains reinvestment, reduces bargaining power with suppliers, and makes margin recovery and long-term growth harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Telecom infrastructure services exposure
Core focus on wireless telecom network deployment and engineering gives durable demand exposure to network rollouts, maintenance, and upgrades. Structural 5G/coverage investments and operator capex cycles support recurring service needs and long-term contract opportunities.
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 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 computi...
How the Company Makes Money
Sprocomm Intelligence Limited generates revenue through multiple streams. Its primary source of income comes from the sale of software licenses for its analytics and optimization products, which are tailored for telecommunications companies and ot...

Sprocomm Intelligence Limited Financial Statement Overview

Summary
Mixed fundamentals: revenue declined (-3.16%) and EBIT/EBITDA margins turned negative. Balance sheet shows moderate but rising leverage (D/E 0.51) and weaker ROE (4.44%). Cash flow is a key concern due to missing operating/free cash flow data for 2024 versus strong prior-year FCF, reducing confidence in liquidity and cash generation.
Income Statement
65
Positive
Balance Sheet
58
Neutral
Cash Flow
50
Neutral
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.26B2.92B2.82B1.45B2.00B2.18B
Gross Profit283.61M257.77M299.59M203.63M172.24M193.42M
EBITDA6.43M-3.19M110.69M591.00K-25.52M-674.00K
Net Income17.69M16.34M32.37M6.51M-17.75M30.88M
Balance Sheet
Total Assets3.42B3.40B3.82B1.46B1.10B1.21B
Cash, Cash Equivalents and Short-Term Investments113.12M79.36M67.95M36.63M82.90M28.10M
Total Debt190.64M187.06M162.75M57.68M78.46M60.17M
Total Liabilities3.04B3.03B3.47B1.14B786.86M872.34M
Stockholders Equity379.48M368.14M352.08M320.22M315.92M333.34M
Cash Flow
Free Cash Flow475.20M-45.69M1.57B547.36M18.23M-70.67M
Operating Cash Flow487.57M-27.12M1.57B555.86M21.35M-40.15M
Investing Cash Flow-36.74M260.15M-1.59B-567.85M53.39M79.32M
Financing Cash Flow-368.15M-222.28M47.69M-35.94M-17.35M-138.03M

Sprocomm Intelligence Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.66
Price Trends
50DMA
0.98
Negative
100DMA
0.79
Positive
200DMA
0.81
Positive
Market Momentum
MACD
-0.03
Positive
RSI
41.01
Neutral
STOCH
27.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1401, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.98, and below the 200-day MA of 0.81, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
70
Outperform
HK$801.80B22.3316.22%35.67%122.22%
66
Neutral
HK$36.07B10.049.56%2.96%21.26%94.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
HK$1.31B21.974.73%-0.54%-46.27%
48
Neutral
HK$11.65B24.302.01%6.10%-70.77%
46
Neutral
HK$229.50M-13.36-4.14%3.70%5.90%
40
Underperform
HK$199.16M-3.41-13.04%8.62%-24.87%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1401
Sprocomm Intelligence Limited
0.87
-0.15
-14.71%
HK:0751
Skyworth Digital Holdings
6.17
3.39
121.94%
HK:2369
Coolpad Group
0.60
-0.20
-24.91%
HK:1070
TCL Electronics Holdings
14.31
7.73
117.61%
HK:1810
Xiaomi
30.88
-5.57
-15.28%
HK:6133
Vital Innovations Holdings Ltd.
0.27
0.13
86.21%

Sprocomm Intelligence Limited Corporate Events

Future Machine Signs Strategic MOUs to Drive Emerging-Market Expansion and Integrated Solutions Push
Jan 23, 2026
Future Machine Limited has signed nine memorandums of understanding with major telecommunications and mobile phone distribution companies across the United Arab Emirates, Bangladesh, India, Sri Lanka and Türkiye, marking a strategic push into...
Future Machine Eases Shareholding Concentration With More Dispersed Investor Base
Dec 30, 2025
Future Machine Limited has disclosed an updated shareholding analysis as of 14 November 2025, showing a more dispersed ownership structure following earlier regulatory concerns about high shareholding concentration. According to an independent ser...
Future Machine Limited Completes Rights Issue, Raising HK$140 Million
Nov 10, 2025
Future Machine Limited, a company incorporated in the Cayman Islands, successfully completed its Rights Issue, raising approximately HK$140 million in gross proceeds. The Rights Issue was initially under-subscribed, but all remaining shares were p...
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: Jan 30, 2026