Sprocomm Intelligence Limited (1401) AI Stock Analysis

• Market Cap: HK$855.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.26
• Revenue Growth: -0.54%
• EPS Growth: -46.27%
• Country: HK
• Employees: 1,414
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): <0.01
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 1,762,600
• 30 Day Avg. Volume: 2,870,600
• PEG Ratio: -1.84
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -32.68
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.50 ▼(-12.28% Downside)

The overall stock score of 54 reflects significant financial performance challenges, particularly in cash flow management and operational efficiency. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. The high P/E ratio suggests potential overvaluation, further impacting the score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strategic Partnerships

These partnerships enhance market reach and create opportunities for co-development projects, boosting financial performance and competitive positioning.

Diverse Revenue Streams

Multiple revenue streams provide stability and reduce dependency on a single income source, supporting long-term financial resilience.

AI and Data Analytics Focus

Focus on AI and data analytics positions the company well in growing tech sectors, driving innovation and potential market expansion.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in sales growth, potentially impacting future profitability and market competitiveness.

Cash Flow Issues

Absence of cash flow data raises concerns about liquidity and cash generation efficiency, affecting financial stability.

Increased Leverage

Rising leverage can strain financial flexibility and increase risk, potentially impacting long-term sustainability.

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 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 other enterprises. Additionally, the company earns revenue from subscription-based services for ongoing access to its AI platforms and updates. Professional services, including consulting and implementation support, also contribute significantly to its earnings. Strategic partnerships with major telecommunications firms and technology providers further enhance its market reach and create opportunities for co-development projects, thereby boosting its financial performance.

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 lower equity contribution, 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	3.26B	2.92B	2.82B	1.45B	2.00B	2.18B
Gross Profit	283.61M	257.77M	299.59M	203.63M	172.24M	193.42M
EBITDA	6.43M	-3.19M	110.69M	591.00K	-25.52M	-674.00K
Net Income	17.69M	16.34M	32.37M	6.51M	-17.75M	30.88M
Balance Sheet
Total Assets	3.42B	3.40B	3.82B	1.46B	1.10B	1.21B
Cash, Cash Equivalents and Short-Term Investments	113.12M	79.36M	67.95M	36.63M	82.90M	28.10M
Total Debt	190.64M	187.06M	162.75M	57.68M	78.46M	60.17M
Total Liabilities	3.04B	3.03B	3.47B	1.14B	786.86M	872.34M
Stockholders Equity	379.48M	368.14M	352.08M	320.22M	315.92M	333.34M
Cash Flow
Free Cash Flow	475.20M	-45.69M	1.57B	547.36M	18.23M	-70.67M
Operating Cash Flow	487.57M	-27.12M	1.57B	555.86M	21.35M	-40.15M
Investing Cash Flow	-36.74M	260.15M	-1.59B	-567.85M	53.39M	79.32M
Financing Cash Flow	-368.15M	-222.28M	47.69M	-35.94M	-17.35M	-138.03M

Sprocomm Intelligence Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 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:1401, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.62, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
1810	71 Outperform	$1.06T	21.85	19.56%	―	35.67%	122.22%
1070	66 Neutral	$27.71B	12.33	13.06%	2.89%	21.26%	94.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1401	54 Neutral	HK$855.00M	39.58	4.74%	―	-0.54%	-46.27%
0751	53 Neutral	HK$7.33B	25.83	1.76%	―	6.10%	-70.77%
6133	46 Neutral	HK$150.45M	-6.94	-4.14%	―	3.70%	5.90%
2369	41 Neutral	HK$502.20M	-2.21	-13.04%	―	8.62%	-24.87%

Sprocomm Intelligence Limited Corporate Events

Future Machine Limited Completes Rights Issue, Raising HK$140 Million

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 placed with independent investors. The net proceeds of approximately HK$138 million will be used to support the company’s mobile phone and related products business, expand production lines, enhance workforce capacity, and explore strategic investments, particularly in the artificial intelligence sector.

Future Machine Limited Announces Under-Subscribed Rights Issue

Future Machine Limited, a company incorporated in the Cayman Islands, has announced the results of its Rights Issue, which was under-subscribed. Out of the 500,000,000 Rights Shares offered, only approximately 61.83% were subscribed, leaving 190,845,690 shares unsubscribed. The company has arranged to place these unsubscribed shares with independent placees through a Placing Agent on a best effort basis. Any premium realized from this placement will be distributed to shareholders who did not take action, on a pro-rata basis. The final results of the Rights Issue and the placement will be announced on November 10, 2025.