i-Control Holdings Limited (1402) AI Stock Analysis

• Market Cap: HK$220.50M
• Dividend Yield: N/A
• Average Volume (3M): 46.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -10.61%
• EPS Growth: 93.27%
• Country: HK
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 1,050,500,000
• 10 Day Avg. Volume: 16,000
• 30 Day Avg. Volume: 46,000
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.20 ▼(-7.27% Downside)
• Action: Reiterated Date: 11/06/25
• Date: Action: Reiterated 11/06/25

The overall stock score of 53 reflects significant challenges in financial performance, particularly in profitability, as indicated by negative net profit margins and a negative P/E ratio. Technical analysis shows positive price trends, but potential overbought conditions could limit upside. The absence of a dividend yield and negative earnings further weigh on the valuation.

Positive Factors

Low leverage / strong capital structure

A debt-to-equity ratio of 0.087 indicates materially low leverage, giving the company durable financial flexibility. Low debt reduces refinancing risk, supports continued investment in operations or R&D, and helps the firm withstand cyclical stress without urgent capital raises.

Improving free cash flow generation

Nearly 20% free cash flow growth and an FCF-to-net-income ratio near 1 signal improving cash conversion. Durable FCF growth enhances self-funding capacity for capex, working capital and strategic initiatives, lowering reliance on external financing over the medium term.

Recent revenue stabilization

A recent sequential revenue uptick (3.9%) suggests stabilization after prior volatility. Sustained top-line improvement supports scale economics, better capacity absorption and creates a platform for margin recovery if cost controls and product demand remain intact over the next several months.

Negative Factors

Negative profitability margins

Persistent negative net and operating margins indicate the core business is not yet generating operating profits. This undermines long-term return generation, pressures retained earnings and makes growth dependent on sustained cash generation or structural cost/pricing changes.

Declining gross profit margin

A materially falling gross margin points to rising input costs, pricing pressure, or mix deterioration. That structural margin squeeze reduces the upside from revenue growth, limits operating leverage, and requires strategic product or cost realignment to restore sustainable profitability.

Negative return on equity

A negative ROE shows the company is not generating returns on shareholders' capital, signaling inefficient capital deployment. Over time this can erode investor confidence, constrain reinvestment, and may force strategic changes, asset restructuring or capital raises to restore returns.

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

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i-Control Holdings Limited Financial Statement Overview

Summary

i-Control Holdings Limited faces challenges in profitability, as evidenced by negative net profit margins and declining gross profit margins. The balance sheet is stable with low leverage, but the negative return on equity highlights profitability issues. Cash flow metrics show some positive trends, particularly in free cash flow growth, but overall cash conversion remains a concern. The company needs to focus on improving profitability and maintaining cost efficiency to enhance its financial performance.

Income Statement

The company has experienced fluctuating revenue growth with a recent positive trend of 3.9%. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in maintaining profitability. The gross profit margin has decreased significantly over the years, suggesting pressure on cost management.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.087, indicating low leverage and financial stability. However, the return on equity is negative, reflecting poor profitability. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

The company has shown improvement in free cash flow growth at 19.9%, which is a positive sign. However, the operating cash flow to net income ratio is moderate, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is close to 1, suggesting efficient cash generation relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	122.22M	121.88M	157.84M	171.45M	145.38M
Gross Profit	14.00M	12.29M	18.95M	60.86M	56.82M
EBITDA	-7.42M	-8.34M	11.95M	11.78M	18.52M
Net Income	-18.32M	-12.88M	5.74M	6.70M	12.79M
Balance Sheet
Total Assets	151.49M	190.15M	236.16M	243.80M	207.67M
Cash, Cash Equivalents and Short-Term Investments	48.83M	35.82M	49.44M	71.03M	68.69M
Total Debt	10.24M	15.63M	18.89M	22.53M	26.42M
Total Liabilities	34.28M	49.37M	55.66M	68.71M	62.75M
Stockholders Equity	117.21M	141.23M	179.44M	174.30M	144.98M
Cash Flow
Free Cash Flow	17.85M	9.44M	-13.27M	4.98M	7.72M
Operating Cash Flow	18.06M	10.02M	-4.45M	5.48M	8.88M
Investing Cash Flow	140.00K	-532.00K	-8.79M	-21.79M	-560.00K
Financing Cash Flow	-5.05M	-23.00M	-7.87M	18.30M	-10.65M

i-Control Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.23, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 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
1522	71 Outperform	HK$681.57M	5.80	6.75%	7.27%	7.39%	2.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1460	61 Neutral	HK$181.66M	5.58	2.96%	3.33%	8.45%	-30.47%
1402	53 Neutral	HK$220.50M	-96.94	-11.11%	―	-10.61%	93.27%
8606	52 Neutral	HK$104.10M	28.26	-1.95%	―	5.01%	82.54%
8229	48 Neutral	HK$346.93M	-5.04	―	―	-9.21%	-4.52%