i-Control Holdings Limited (1402) AI Stock Analysis

• Market Cap: HK$304.50M
• Dividend Yield: 2%
• Average Volume (3M): 220.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.09
• Revenue Growth: -6.11%
• EPS Growth: -16.26%
• Country: HK
• Employees: 69
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,050,500,000
• 10 Day Avg. Volume: 40,000
• 30 Day Avg. Volume: 220,333
• PEG Ratio: -0.80
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 13.42
• 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: HK$0.50
• Price Target Upside: 72.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(72.41% Upside)

The overall stock score is primarily influenced by the company's financial performance challenges, particularly in profitability. Technical analysis shows positive momentum, which is a strong point. However, the valuation is weak due to negative earnings and lack of dividends, impacting the overall attractiveness.

i-Control Holdings Limited Business Overview & Revenue Model

Company Description

i-Control Holdings Limited, an investment holding company, provides video conferencing and multimedia audiovisual (VCMA) solutions in Hong Kong, the People's Republic of China, and Singapore. The company operates in two segments, Provision of VCMA Solution and Maintenance Services and Provision of Cloud-based IT+OT Managed Services. It offers cloud-based information technology and operational technology managed services, which including artificial intelligence of things operation and other services, as well as security services. The company also provides VCMA solution and maintenance services, such as project consultation and design, to project management, installation, and maintenance; corporate consultancy and support; and audio visual system integration, as well as holds in property. It serves government and financial institutions, multi-national corporations, public companies, and education institutions. The company was founded in 1987 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

i-Control Holdings Limited generates revenue primarily through the sale of its proprietary control systems and IoT solutions. The company has a diversified revenue model that includes direct sales to end-users, licensing agreements for its technology, and ongoing service contracts for maintenance and support. Key revenue streams include system installations, software subscriptions, and consulting services. Additionally, i-Control Holdings often partners with other technology firms and industrial players to co-develop solutions, which can lead to revenue-sharing agreements and joint ventures that further enhance its earnings potential.

i-Control Holdings Limited Financial Statement Overview

Summary

i-Control Holdings Limited faces significant challenges, particularly in revenue and profitability, as reflected in declining income statement metrics. The balance sheet remains strong with low leverage and a solid equity base. The cash flow shows signs of recovery with positive free cash flow, but the company needs to address profitability issues to ensure long-term sustainability.

Income Statement

The company has experienced a significant decline in revenue from the previous year, with a 17.53% decrease from 2023 to 2024. The gross profit margin has also decreased significantly from 38.23% in 2023 to 4.28% in 2024, indicating challenges in cost management. The net profit margin turned negative at -9.90% in 2024, compared to being positive in 2023. The company also reported negative EBIT and EBITDA margins in 2024, showing operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.11, indicating low leverage and reduced financial risk. However, the return on equity has turned negative at -9.12% in 2024, reflecting poor profitability. The equity ratio remains strong at 74.29%, suggesting a solid capital structure with strong equity backing.

Cash Flow

The company has shown improvement in free cash flow, which turned positive at HK$9.44 million in 2024 from a negative position in 2023. The operating cash flow to net income ratio is positive, indicating efficient cash generation from operations. However, the free cash flow to net income ratio is negative, which could signal challenges in translating income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.64M	122.22M	130.18M	157.84M	171.45M	145.38M
Gross Profit	4.11M	14.00M	5.57M	60.34M	60.86M	56.82M
EBITDA	-7.13M	-7.42M	-8.34M	11.95M	11.78M	18.52M
Net Income	-20.63M	-18.32M	-12.88M	5.74M	6.70M	12.79M
Balance Sheet
Total Assets	158.11M	151.49M	190.15M	236.16M	243.80M	207.67M
Cash, Cash Equivalents and Short-Term Investments	41.43M	48.83M	35.82M	49.44M	71.03M	68.69M
Total Debt	12.29M	10.24M	15.63M	18.89M	22.53M	26.42M
Total Liabilities	39.03M	34.28M	49.37M	55.66M	68.71M	62.75M
Stockholders Equity	119.08M	117.21M	141.23M	179.44M	174.30M	144.98M
Cash Flow
Free Cash Flow	14.89M	17.85M	9.44M	-13.27M	4.98M	7.72M
Operating Cash Flow	15.23M	18.06M	10.02M	-4.45M	5.48M	8.88M
Investing Cash Flow	-166.00K	140.00K	-532.00K	-8.79M	-21.79M	-560.00K
Financing Cash Flow	-5.05M	-5.05M	-23.00M	-7.87M	18.30M	-10.65M

i-Control Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1402, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.22, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1402.

i-Control Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	78 Outperform	HK$289.60M	11.26	4.67%	2.99%	5.87%	54.21%
Sector *	68 Neutral	¥241.22B	15.24	6.62%	2.44%	9.24%	1.58%
1522	65 Neutral	HK$692.06M	4.13	6.11%	7.38%	1.20%	-3.85%
1402	56 Neutral	HK$304.50M	―	-9.44%	2.00%	-6.11%	-16.26%
8606	53 Neutral	HK$134.46M	―	-6.08%	―	8.50%	67.35%
8229	46 Neutral	HK$313.89M	―	-11.66%	―	-9.21%	-4.52%

i-Control Holdings Limited Corporate Events

i-Control Holdings Sets Record Date for AGM

i-Control Holdings Limited has announced the record date for its upcoming Annual General Meeting (AGM), which will be held on 8 August 2025. The company has specified that the register of members will be closed from 5 August to 8 August 2025, during which no share transfers will be processed. Shareholders must ensure their shares are registered by 4 August 2025 to be eligible to attend and vote at the AGM.

i-Control Holdings Announces AGM and Key Resolutions for 2025

i-Control Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for August 8, 2025. Key agenda items include the adoption of the audited financial statements for the year ended March 31, 2025, re-election of directors, and the authorization of the board to fix directors’ and auditors’ remuneration. Additionally, a special resolution will be considered to grant the board authority to issue additional shares, potentially impacting the company’s capital structure and market positioning.

i-Control Holdings Limited Updates Nomination Committee Terms

i-Control Holdings Limited has amended the terms of reference for its Nomination Committee to ensure compliance with the Hong Kong Stock Exchange’s listing rules. The committee, which is responsible for the formal and transparent appointment of new directors, will consist of at least three members, with a majority being independent non-executive directors and at least one member of a different gender. This move is aimed at enhancing the governance structure and ensuring diverse representation, potentially impacting the company’s operational transparency and stakeholder confidence.

i-Control Holdings Proposes Amendments to Enhance Governance

i-Control Holdings Limited has announced proposed amendments to its memorandum and articles of association to align with recent changes in the Hong Kong Stock Exchange’s Listing Rules. These amendments include provisions for electronic and hybrid general meetings, electronic voting, and the adoption of a treasury share regime, which are expected to enhance corporate governance and operational efficiency.

i-Control Holdings Reports Increased Losses for FY2025

i-Control Holdings Limited announced its audited consolidated results for the year ended 31 March 2025, reporting a loss of HK$18.814 million, an increase from the previous year’s loss of HK$14.328 million. The company faced challenges with increased impairment losses and operating expenses, impacting its financial performance and resulting in comprehensive expenses of HK$24.369 million for the year.

i-Control Holdings to Review Annual Financial Results and Dividend Proposal

i-Control Holdings Limited has announced that its board of directors will meet on June 20, 2025, to review and approve the audited consolidated financial results for the year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend and address other business matters, which could impact the company’s financial strategy and shareholder returns.