ICO Group Limited (1460) AI Stock Analysis

• Market Cap: HK$254.50M
• Dividend Yield: 3.33%
• Average Volume (3M): 856.11K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.45
• Revenue Growth: 8.45%
• EPS Growth: -30.47%
• Country: HK
• Employees: 338
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.01
• Shares Outstanding: 877,590,330
• 10 Day Avg. Volume: 2,071,440
• 30 Day Avg. Volume: 856,106
• PEG Ratio: 0.14
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.33
• 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: 61 Neutral
• Price Target: HK$0.29 ▼(-1.72% Downside)

The overall stock score is primarily influenced by the company's solid financial performance, characterized by strong cash flow and low leverage. However, the technical analysis indicates bearish momentum, and the valuation is moderate. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term sustainability.

Cash Generation

Robust cash generation enhances financial flexibility, allowing for strategic investments and debt reduction, supporting future growth.

Low Leverage

Low leverage reduces financial risk and interest obligations, providing stability and enabling focus on growth and innovation.

Negative Factors

Profit Margins

Low profit margins may limit reinvestment and shareholder returns, indicating a need for cost optimization and efficiency improvements.

Earnings Growth

Negative EPS growth reflects challenges in profitability, potentially impacting investor confidence and limiting capital for expansion.

Operational Efficiency

Moderate operational efficiency suggests potential for cost improvements and process optimization to enhance profitability.

ICO Group Limited Business Overview & Revenue Model

Company Description

ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. It operates through IT Application and Solution Development Services, IT Infrastructure Solutions Services, IT Secondment Services, IT Maintenance and Support Services, and Property Leasing and E-commerce Business segments. The company engages in the design and implementation of IT applications; and procurement of third-party hardware and software. It also provides IT infrastructure solutions; and sells IT infrastructure solution-related hardware and software. In addition, the company offers IT secondment, maintenance, and support services; and property leasing and online trading platform services. It serves various industries, such as banking, finance and insurance, government departments, exchanges and regulatory bodies, telecommunication, distribution and retail, logistics and media, universities and schools, construction, manufacturing, and others. The company was founded in 1992 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

ICO Group Limited generates revenue through multiple streams, including the sale of telecommunications equipment and software solutions, as well as providing maintenance and support services. Key revenue streams include direct sales to businesses and government agencies, recurring revenue from service contracts, and partnerships with other technology firms that allow for collaborative product offerings. Additionally, the company may benefit from strategic alliances that enhance its market reach and capabilities, further contributing to its earnings.

ICO Group Limited Financial Statement Overview

Summary

ICO Group Limited exhibits a solid financial position with consistent revenue growth and strong cash flow generation. While profitability margins are moderate, the company's low leverage and strong equity position provide financial stability. Continued focus on improving net profit margins could enhance overall financial performance.

Income Statement

ICO Group Limited has shown consistent revenue growth over the years, with a 7.21% increase in the latest year. The gross profit margin has remained stable around 20%, indicating efficient cost management. However, the net profit margin is relatively low at 2.25%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.10, indicating low leverage and financial stability. The return on equity is modest at 4.57%, showing moderate returns on shareholder investments. The equity ratio is strong, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

ICO Group Limited has demonstrated strong free cash flow growth of 23.59%, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting effective conversion of profits into cash. The free cash flow to net income ratio is high, reflecting efficient cash management and reinvestment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.14B	1.08B	877.32M	712.45M	637.34M
Gross Profit	290.62M	230.22M	209.45M	173.74M	131.03M	110.28M
EBITDA	93.48M	62.19M	53.94M	40.56M	37.46M	29.00M
Net Income	27.54M	25.70M	16.69M	10.97M	8.12M	8.10M
Balance Sheet
Total Assets	1.06B	1.06B	954.51M	865.14M	777.45M	701.27M
Cash, Cash Equivalents and Short-Term Investments	375.97M	375.97M	306.62M	216.92M	107.42M	106.81M
Total Debt	57.34M	57.34M	62.55M	57.58M	59.56M	22.44M
Total Liabilities	482.66M	482.66M	389.27M	314.84M	222.73M	196.10M
Stockholders Equity	562.60M	562.60M	537.70M	530.99M	530.98M	483.63M
Cash Flow
Free Cash Flow	85.23M	85.23M	93.61M	121.01M	-40.08M	48.12M
Operating Cash Flow	88.35M	88.35M	96.42M	121.40M	-39.91M	48.97M
Investing Cash Flow	110.12M	81.56M	-83.29M	1.44M	10.97M	-5.80M
Financing Cash Flow	-44.35M	-29.60M	-13.81M	-12.81M	30.89M	16.86M

ICO Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 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:1460, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.31, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1460.

ICO Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1900	67 Neutral	HK$428.33M	0.94	20.36%	9.12%	27.05%	842.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1460	61 Neutral	HK$254.50M	14.95	2.96%	3.33%	8.45%	-30.47%
8229	54 Neutral	HK$297.37M	-15.56	―	―	-9.21%	-4.52%
1402	53 Neutral	HK$252.00M	-160.00	-1.31%	―	-10.61%	93.27%
8081	42 Neutral	HK$92.81M	-1.12	-30.96%	―	-5.31%	-43.75%
8050	39 Underperform	HK$528.94M	232.14	26.16%	―	33.20%	―

ICO Group Limited Corporate Events

ICO Group Limited Reports Decline in Interim Profits Despite Revenue Growth

ICO Group Limited announced its interim results for the six months ending September 30, 2025, reporting a slight increase in revenue by 3% to HK$517,298,000 compared to the previous year. However, the company experienced a significant decline in profit by 32% to HK$19,122,000, and earnings per share dropped by 40% to 1.5 HK cents. The board has decided not to recommend any interim dividend for this period, reflecting the financial challenges faced by the company.

ICO Group Limited Schedules Board Meeting for Interim Results

ICO Group Limited has announced that its board of directors will meet on November 26, 2025, to discuss and approve the company’s unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend and other business matters, indicating the company’s ongoing financial management and potential shareholder returns.

ICO Group Limited Announces Subscription of Preferred Shares in Weitu AI Inc.

ICO Group Limited, incorporated in the Cayman Islands, announced a discloseable transaction involving a subscription agreement with Weitu AI Inc. The agreement involves ICO Group subscribing to 34,479 preferred shares of Weitu AI Inc. for a total of US$3,000,000, representing approximately 2.54% of the company’s share capital. This transaction, subject to certain conditions, is significant under Hong Kong’s Listing Rules and reflects ICO Group’s strategic investment in the technology sector.