Synertone Communication Corporation (1613) AI Stock Analysis

• Market Cap: HK$134.62M
• Dividend Yield: N/A
• Average Volume (3M): 343.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 108.35%
• EPS Growth: 58.07%
• Country: HK
• Employees: 79
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): -0.07
• Shares Outstanding: 448,741,460
• 10 Day Avg. Volume: 760,200
• 30 Day Avg. Volume: 343,399
• PEG Ratio: 0.52
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.55
• 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

The overall stock score of Synertone Communication Corporation is primarily influenced by its financial performance, which shows persistent challenges, especially in revenue and cash flow. Although there is some improvement in the balance sheet, profitability remains elusive. Technical analysis presents a neutral outlook with mixed indicators, and valuation is negatively impacted by the company's earnings situation. The lack of earnings call and corporate events data means these components do not influence the score.

Synertone Communication Corporation Business Overview & Revenue Model

Company Description

Synertone Communication Corporation (1613) is a telecommunications company based in China that specializes in satellite communication services. The company provides a range of products and services including satellite communication systems, wireless communication systems, and network communication systems. It serves various sectors such as government, military, and commercial enterprises, focusing on delivering reliable and secure communication solutions.

How the Company Makes Money

Synertone Communication Corporation generates revenue primarily through the sale and leasing of satellite communication equipment and services. The company offers satellite communication systems that facilitate long-distance communication, data transmission, and network connectivity. These services are critical for clients in remote areas or industries requiring secure and stable communication lines. Additionally, Synertone may engage in partnerships with government and military organizations to provide tailored communication solutions, contributing to its revenue. The company's diversified product offerings and ability to cater to both commercial and governmental needs play a significant role in its earnings.

Synertone Communication Corporation Financial Statement Overview

Summary

Synertone Communication Corporation shows mixed financial health with improvements in some areas but persistent challenges overall. Revenue and profit margins face difficulties, though there is a slight recovery in revenue in 2024. Despite a more stable balance sheet, cash flow issues persist, primarily due to negative operating cash flow. The company needs to enhance operational efficiency and manage costs better to achieve sustainable profitability and liquidity.

Income Statement

The company exhibits declining revenue over recent years, with a significant drop in revenue from 2022 to 2023. While 2024 shows a slight recovery, margins remain negative, indicating continued challenges in profitability. Gross Profit Margin improved in 2024 to 39.56%, but both EBIT and Net Profit Margins remain negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a decreasing debt-to-equity ratio from 2023 to 2024, indicating reduced financial leverage. However, the Return on Equity remains negative due to persistent net losses. The equity ratio improved to 50.73% in 2024, suggesting a relatively stable capital structure despite past financial challenges.

Cash Flow

Operating cash flow remains negative, demonstrating cash flow challenges from core operations. Free Cash Flow improved slightly from 2023 to 2024, but it is still negative, impacting liquidity. The company relies on financing to cover cash flow deficits, as seen in substantial financing cash flow in 2024.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
121.58M	62.58M	60.54M	114.17M	90.28M	73.24M
	Gross Profit
24.55M	24.76M	8.95M	22.93M	18.34M	27.08M
	EBIT
-17.62M	-11.88M	-41.24M	-85.30M	-21.57M	-32.55M
	EBITDA
-13.84M	-7.50M	-26.20M	-98.38M	-2.11M	-15.29M
	Net Income Common Stockholders
-22.36M	-17.84M	-40.97M	-109.68M	-15.13M	-36.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.38M	33.37M	2.35M	8.01M	4.18M	46.31M
	Total Assets
957.81M	223.09M	226.02M	271.45M	309.71M	296.29M
	Total Debt
571.31M	51.19M	68.22M	81.48M	75.38M	73.00M
	Net Debt
553.32M	17.81M	65.88M	73.47M	71.20M	26.69M
	Total Liabilities
676.93M	106.88M	157.65M	166.02M	147.07M	123.08M
	Stockholders Equity
266.32M	113.17M	69.13M	102.89M	156.22M	165.57M
Cash Flow		Free Cash Flow
-20.54M	-17.50M	-6.22M	-21.90M	-14.52M	-23.54M
	Operating Cash Flow
-20.26M	-17.48M	-5.99M	-11.20M	-11.18M	-21.46M
	Investing Cash Flow
-1.58M	-2.66M	-580.00K	-34.57M	-25.97M	6.71M
	Financing Cash Flow
13.62M	50.78M	633.00K	49.45M	-5.30M	50.73M

Synertone Communication Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1613.

Synertone Communication Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0728	71 Outperform	€739.53B	14.34	7.35%	5.01%	1.82%	5.31%
0763	67 Neutral	$161.46B	12.70	11.39%	3.01%	-2.65%	-14.96%
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%
1613	46 Neutral	HK$134.62M	―	-21.92%	―	108.35%	58.07%

Synertone Communication Corporation Corporate Events

Synertone Communication Corporation Appoints New Auditor

Synertone Communication Corporation announced a change in its auditor, with HLB Hodgson Impey Cheng Limited resigning due to a disagreement over audit fees for the 2025 financial year. Prism Hong Kong Limited has been appointed as the new auditor, as recommended by the Audit Committee, due to its competitive audit fee proposal and extensive experience with listed companies in Hong Kong. The company assures that this change will not materially impact its operations or the 2025 audit, and it is considered beneficial for stakeholders.

Synertone CEO Resigns Amid New Business Commitments

Synertone Communication Corporation announced the resignation of its Chief Executive Officer, Mr. Han Weining, effective March 18, 2025, due to his personal commitments to other business engagements. Mr. Han will continue to serve as an executive director, and the board is in the process of identifying a suitable replacement. The company expressed gratitude for Mr. Han’s contributions during his tenure as CEO.