ICO Group Limited (1460) AI Stock Analysis

• Market Cap: HK$181.66M
• Dividend Yield: 3.33%
• Average Volume (3M): 856.11K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.27
• 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$0.22 ▼(-27.33% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Strong free cash flow generation

Sustained free cash flow growth (23.59%) demonstrates durable cash conversion from operations. That capacity supports recurring investment, dividend funding, debt repayment and strategic initiatives, reducing reliance on external capital during downturns.

Very low leverage / strong capital structure

A debt-to-equity of 0.10 and a strong equity ratio provide long-term financial flexibility and low fixed-interest burden. This balance sheet strength enables opportunistic M&A, R&D spending, and resilience to shocks without risking solvency.

Consistent revenue growth with stable gross margin

Mid-single-digit revenue growth with a stable ~20% gross margin signals ongoing market demand and disciplined cost control. That combination supports scalable operations and gives management room to improve operating leverage and lift net profitability over time.

Negative Factors

Low net profit margin

A 2.25% net margin constrains retained earnings and narrows buffers against cost shocks. Even with revenue growth, low bottom-line conversion limits capital available for reinvestment and shareholder returns unless operating efficiency or pricing power meaningfully improves.

Modest return on equity

ROE of 4.57% indicates modest effectiveness in converting shareholder capital into profits. Persistently low ROE can hinder long-term shareholder value creation and suggests either low profitability or suboptimal asset utilization absent strategic change.

Weak recent EPS trend

A roughly -30% EPS decline reflects pressure on per-share earnings that may stem from margin compression, one-offs, or operational issues. If this trend persists, it undermines dividend sustainability and signals challenges turning revenue growth into shareholder returns.

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 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.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.47B	1.14B	1.08B	877.32M	712.45M	637.34M
Gross Profit	284.51M	230.22M	209.45M	173.74M	131.03M	110.28M
EBITDA	95.57M	62.19M	53.94M	40.56M	37.46M	29.00M
Net Income	18.88M	25.70M	16.69M	10.97M	8.12M	8.10M
Balance Sheet
Total Assets	940.22M	1.06B	954.51M	865.14M	777.45M	701.27M
Cash, Cash Equivalents and Short-Term Investments	244.19M	375.97M	306.62M	216.92M	107.42M	106.81M
Total Debt	57.88M	57.34M	62.55M	57.58M	59.56M	22.44M
Total Liabilities	341.82M	482.66M	389.27M	314.84M	222.73M	196.10M
Stockholders Equity	576.57M	562.60M	537.70M	530.99M	530.98M	483.63M
Cash Flow
Free Cash Flow	-36.37M	85.23M	93.61M	121.01M	-40.08M	48.12M
Operating Cash Flow	-33.71M	88.35M	96.42M	121.40M	-39.91M	48.97M
Investing Cash Flow	39.34M	81.56M	-83.29M	1.44M	10.97M	-5.80M
Financing Cash Flow	-40.45M	-29.60M	-13.81M	-12.81M	30.89M	16.86M

ICO Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 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:1460, the sentiment is Negative. The current price of 0.3 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.26, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 25.48 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$516.06M	0.22	20.46%	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$181.66M	5.58	5.25%	3.33%	8.45%	-30.47%
1402	53 Neutral	HK$220.50M	-13.07	-11.11%	―	-10.61%	93.27%
8229	48 Neutral	HK$346.93M	-5.04	―	―	-9.21%	-4.52%
8081	42 Neutral	HK$97.96M	-6.30	-8.93%	―	-5.31%	-43.75%
8050	39 Underperform	HK$455.70M	-12.74	-675.67%	―	33.20%	―

ICO Group Limited Corporate Events

ICO Group Details Rationale for Investment in Fast-Growing AI Video Analytics Firm

ICO Group Limited has issued a supplemental announcement regarding its previously disclosed subscription of preference shares in an AI-focused issuer valued at about US$124 million, clarifying that the target company’s core technology is an artificial intelligence system for video and visual interpretation capable of analysing multi-hour videos within seconds. The board detailed its basis for considering the valuation fair and reasonable, citing extensive due diligence on the issuer’s financials and system performance, the rapid uptake of its video AI application since its August 2025 public launch, and early traction with high-quality public-sector customers in Hong Kong and Singapore, which the company believes underscores strong market demand and significant potential for future revenue growth from this investment.

The most recent analyst rating on (HK:1460) stock is a Hold with a HK$0.28 price target. To see the full list of analyst forecasts on ICO Group Limited stock, see the HK:1460 Stock Forecast page.