Synertone Communication Corporation (1613) AI Stock Analysis

• Market Cap: HK$258.48M
• Dividend Yield: N/A
• Average Volume (3M): 424.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -58.81%
• EPS Growth: -10.51%
• Country: HK
• Employees: 79
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.02
• Shares Outstanding: 1,346,224,400
• 10 Day Avg. Volume: 493,964
• 30 Day Avg. Volume: 424,179
• PEG Ratio: -0.09
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -2.92
• 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: 46 Neutral
• Price Target: HK$0.19 ▲(18.13% Upside)

The score is held back primarily by weak financial performance (ongoing losses and negative operating cash flow). Technical indicators are mildly supportive in the near term, but longer-term trend signals are weaker. Valuation is difficult to assess with a negative P/E and no dividend yield data.

Positive Factors

Recurring revenue streams

Recurring maintenance contracts and software subscriptions create durable, predictable revenue that smooths headline volatility and supports long-term customer relationships. This recurring base can fund R&D and service delivery, improving revenue visibility and resilience over a multi-quarter horizon.

Exposure to IoT and smart‑city infrastructure

Operating in IoT, smart cities and broadband targets secular infrastructure growth and public spending cycles. These large, multi-year projects create long-duration contracts and integration work, while partnerships can accelerate access to customers and scale, supporting sustainable revenue opportunities.

Improving balance sheet leverage

An improving debt-to-equity profile and stable equity ratio reduce near-term refinancing risk and lower fixed financing costs, giving management more flexibility to invest or bid on contracts. This gradual deleveraging enhances financial resilience across upcoming funding cycles.

Negative Factors

Recurring net losses and negative margins

Sustained net losses and negative EBIT margins indicate the company struggles to reach operational breakeven. Persistent unprofitability limits free cash generation, constrains reinvestment in product development, and increases reliance on external capital, threatening long-term viability if not corrected.

Negative operating cash flow

Persistent negative operating cash flow erodes liquidity and forces dependence on financing for working capital and capex. Over months this restricts the firm’s ability to fund growth initiatives, meet contract performance demands, and withstand procurement or payment timing shocks without diluting equity or raising debt.

Steep and inconsistent revenue decline

A roughly 59% revenue decline and inconsistent top-line trends undermine scale economics and pricing power. Falling revenue pressures gross margins and recurring maintenance bases, making it harder to cover fixed costs and invest in sales or product enhancements needed to regain sustainable growth.

Synertone Communication Corporation Business Overview & Revenue Model

Company Description

Synertone Communication Corporation, together with its subsidiaries, designs, researches and develops, produces, and sells automation control and intelligent building systems in the People's Republic of China, Hong Kong, and internationally. It operates through Building Intelligence, Control System, and Data Centre segments. The Building Intelligence segment provides video intercom system, security alarm solutions, and surveillance systems under the MOX brand for residential complexes; and smart home automation systems for new and existing households. The Control System segment offers automation hardware and software products, information systems platforms, as well as the industrial, monitoring, and scheduling management system solutions for municipal utilities industry. The Data Centre segment provides rental and maintenance services to computer equipment and machines, information technology infrastructure and platform, and robots, as well as other related services. Synertone Communication Corporation was founded in 2001 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Synertone generates revenue through multiple streams, primarily by selling its communication hardware and software solutions to telecommunications providers, enterprises, and government agencies. The company engages in contract-based projects, providing customized systems for large-scale communication networks and smart city applications. Additionally, Synertone earns recurring revenue from maintenance contracts and software subscriptions associated with its products. Strategic partnerships with key industry players enhance its market reach and may lead to joint ventures that further contribute to its earnings. Moreover, the company may benefit from government contracts and grants aimed at enhancing communication infrastructure, providing an additional layer of financial stability.

Synertone Communication Corporation Financial Statement Overview

Summary

Weak fundamentals: recurring net losses and negative EBIT margins, inconsistent revenue with a recent decline, and persistent negative operating cash flow. Balance sheet leverage has improved somewhat, but negative ROE indicates continued inability to generate returns.

Income Statement

The income statement reveals significant challenges with profitability and growth. The company has consistently reported negative net income and EBIT margins, indicating ongoing operational losses. Revenue growth has been inconsistent, with a notable decline in the most recent year. Gross profit margins have also decreased over time, suggesting pressure on cost management or pricing power.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio that has improved over the years but remains a concern. The return on equity is negative, reflecting the company's inability to generate profits from its equity base. However, the equity ratio is relatively stable, indicating a reasonable level of equity financing compared to total assets.

Cash Flow

Cash flow analysis indicates persistent negative operating cash flows, which is a concern for liquidity and sustainability. The free cash flow has shown some growth, but the overall cash flow situation remains weak. The ratios of cash flow to net income suggest that cash flows are not effectively supporting profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.93M	116.93M	62.58M	60.54M	114.17M	90.28M
Gross Profit	15.96M	15.91M	24.76M	8.95M	22.93M	18.34M
EBITDA	-30.26M	-29.92M	-7.10M	-29.05M	-98.38M	-2.11M
Net Income	-32.49M	-32.49M	-17.84M	-40.97M	-109.68M	-15.13M
Balance Sheet
Total Assets	221.44M	221.44M	223.09M	226.02M	271.45M	309.71M
Cash, Cash Equivalents and Short-Term Investments	11.03M	11.03M	33.37M	2.35M	8.01M	4.18M
Total Debt	43.86M	43.86M	51.19M	68.22M	81.48M	75.38M
Total Liabilities	113.73M	113.73M	106.88M	157.65M	166.02M	147.07M
Stockholders Equity	107.99M	107.99M	113.17M	69.13M	102.89M	156.22M
Cash Flow
Free Cash Flow	-39.61M	-38.52M	-17.50M	-6.22M	-21.90M	-14.52M
Operating Cash Flow	-39.29M	-38.20M	-17.48M	-5.99M	-11.20M	-11.18M
Investing Cash Flow	-719.00K	-676.00K	-2.66M	-580.00K	-34.57M	-25.97M
Financing Cash Flow	19.86M	17.59M	50.78M	633.00K	49.45M	-5.30M

Synertone Communication Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 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:1613, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.17, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1613.

Synertone Communication Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1473	68 Neutral	HK$586.00M	15.76	12.27%	2.53%	19.80%	―
1617	65 Neutral	HK$284.59M	4.35	7.40%	―	-9.34%	605.26%
1720	63 Neutral	HK$156.20M	6.83	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1613	46 Neutral	HK$258.48M	-3.38	-30.44%	―	-58.81%	-10.51%
0947	45 Neutral	HK$115.61M	-0.88	-29.56%	―	-12.03%	-40.38%
0482	43 Neutral	HK$93.51M	-1.05	―	―	-2.92%	-48.35%

Synertone Communication Corporation Corporate Events

Synertone’s Deeply Under-Subscribed Rights Issue Triggers Large Compensatory Placing

Synertone Communication Corporation reported that its rights issue of up to 897,482,880 new shares was significantly under-subscribed, with only 87,123,051 rights shares validly applied for, representing about 9.71% of the offer. As a result, approximately 810,359,829 unsubscribed rights shares will be dealt with through compensatory arrangements, under which a placing agent has been appointed on a best-effort basis to place these shares with independent investors, and any premium over the subscription price achieved in this placing will be returned pro rata (subject to a HK$100 minimum) to eligible shareholders who did not fully take up their entitlements. Any unsubscribed rights shares that cannot be placed will not be issued, reducing the final size of the capital-raising exercise, and the company plans to announce the final results of the rights issue, the placing outcome and the net gain per placing share in February 2026, a development that will determine how much fresh equity capital Synertone ultimately secures and how its shareholder base may shift.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Communication Corporation’s Rights Issue Approved by Shareholders

Synertone Communication Corporation announced that its proposed Rights Issue was approved in an extraordinary general meeting held on December 15, 2025. The resolution, which allows for two Rights Shares for every existing Share, was overwhelmingly supported by shareholders, with 99.99% voting in favor. This approval is expected to impact the company’s capital structure positively, potentially enhancing its market positioning and providing additional resources for growth.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Reports Interim Financial Loss Amid Revenue Decline

Synertone Communication Corporation announced its unaudited interim results for the six months ending September 30, 2025, revealing a significant decline in revenue compared to the same period in 2024. Despite a gross profit, the company reported a loss for the period due to high administrative expenses and an allowance for expected credit loss, impacting its financial performance and potentially affecting stakeholder confidence.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Issues Profit Warning Amid Revenue Decline

Synertone Communication Corporation has issued a profit warning, indicating a significant revenue drop of approximately 87.8% for the six months ending September 2025 compared to the same period in 2024. This decline is attributed to the scaling back of its smartphone distribution segment due to intense market competition and low profitability, although it did not materially impact the company’s overall loss. The interim results are yet to be finalized, with the announcement expected on 28 November 2025.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Communication Corporation Announces Rights Issue to Raise Capital

Synertone Communication Corporation has announced an extraordinary general meeting to consider a rights issue of up to 897,482,880 ordinary shares at a subscription price of HK$0.135 per share. This move is aimed at raising capital, with the rights issue contingent upon approval from the Hong Kong Stock Exchange and the finalization of a placing agreement with Waton Securities International Limited. The rights issue is structured to offer two rights shares for every existing share held by qualifying shareholders, excluding those outside Hong Kong due to legal and regulatory constraints.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Communication Corporation Announces Upcoming Board Meeting

Synertone Communication Corporation has announced a board meeting scheduled for November 28, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.

Synertone Announces Delay in Rights Issue Circular Dispatch

Synertone Communication Corporation has announced a delay in the dispatch of its circular related to a proposed rights issue, initially scheduled for November 10, 2025, now postponed to November 24, 2025. This delay impacts the timetable for the rights issue, which is on a non-underwritten basis, offering two rights shares for every one share held, and affects the schedule for the Extraordinary General Meeting (EGM) and related shareholder activities.

The most recent analyst rating on (HK:1613) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Synertone Communication Corporation stock, see the HK:1613 Stock Forecast page.