Synertone Communication Corporation (1613) AI Stock Analysis

• Market Cap: HK$109.49M
• Dividend Yield: N/A
• Average Volume (3M): 424.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -58.81%
• EPS Growth: -10.53%
• Country: HK
• Employees: 79
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.03
• Shares Outstanding: 448,741,460
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.20 ▼(-4.29% Downside)

The overall stock score is primarily impacted by significant financial challenges, including negative profitability and weak cash flow. Technical indicators are neutral, providing no strong directional signal, while valuation metrics are unattractive due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

The substantial revenue growth suggests an expanding market presence and increasing demand for Synertone's products, which could drive long-term business success.

Business Model

The B2B model with customized solutions enhances client relationships and can lead to stable, recurring revenue streams, supporting long-term growth.

Market Position

As a leading provider in the communication sector, Synertone benefits from established market presence and brand recognition, which can sustain competitive advantage.

Negative Factors

Profitability Challenges

Ongoing operational losses indicate difficulty in achieving profitability, which could hinder financial stability and investment capacity over time.

Cash Flow Issues

Negative cash flows raise concerns about liquidity and the ability to fund operations and growth initiatives, impacting long-term sustainability.

Leverage Concerns

Moderate leverage combined with negative return on equity suggests financial strain, limiting flexibility and increasing risk in economic downturns.

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

Synertone Communication Corporation faces significant financial challenges with negative profitability, inconsistent revenue growth, and weak cash flow generation. Despite some improvements in leverage, the overall financial health is concerning.

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	121.58M	116.93M	62.58M	60.54M	114.17M	90.28M
Gross Profit	24.55M	15.91M	24.76M	8.95M	22.93M	18.34M
EBITDA	-13.84M	-29.92M	-7.10M	-29.05M	-98.38M	-2.11M
Net Income	-22.36M	-32.49M	-17.84M	-40.97M	-109.68M	-15.13M
Balance Sheet
Total Assets	218.28M	221.44M	223.09M	226.02M	271.45M	309.71M
Cash, Cash Equivalents and Short-Term Investments	33.01M	11.03M	33.37M	2.35M	8.01M	4.18M
Total Debt	43.76M	43.86M	51.19M	68.22M	81.48M	75.38M
Total Liabilities	111.76M	113.73M	106.88M	157.65M	166.02M	147.07M
Stockholders Equity	105.09M	107.99M	113.17M	69.13M	102.89M	156.22M
Cash Flow
Free Cash Flow	-20.54M	-38.52M	-17.50M	-6.22M	-21.90M	-14.52M
Operating Cash Flow	-20.26M	-38.20M	-17.48M	-5.99M	-11.20M	-11.18M
Investing Cash Flow	-1.62M	-676.00K	-2.66M	-580.00K	-34.57M	-25.97M
Financing Cash Flow	14.80M	17.59M	50.78M	633.00K	49.45M	-5.30M

Synertone Communication Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 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 Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	66 Neutral	HK$439.50M	11.94	12.27%	2.63%	19.80%	―
1720	63 Neutral	HK$115.50M	5.05	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
1613	41 Neutral	HK$109.49M	-2.96	-30.44%	―	-58.81%	-10.53%
0947	41 Neutral	HK$114.02M	-0.87	-29.56%	―	-12.03%	-40.38%
0482	40 Neutral	HK$93.51M	-1.05	―	―	-2.92%	-48.35%

Synertone Communication Corporation Corporate Events

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.

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.

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.

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.

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.

Synertone Communication Corporation Announces HK$121.2 Million Rights Issue

Synertone Communication Corporation has announced a proposed rights issue to raise approximately HK$121.2 million. This initiative aims to issue 897,482,880 Rights Shares at a subscription price of HK$0.135 per share, available only to qualifying shareholders. The rights issue, which will increase the company’s share capital by over 50%, requires approval from minority shareholders at an extraordinary general meeting (EGM). The proceeds are expected to enhance the company’s financial position, with implications for its market operations and shareholder value.

Synertone Completes Subsidiary Disposal, Signaling Strategic Shift

Synertone Communication Corporation has announced the completion of a significant transaction involving the disposal of certain subsidiaries, effective September 25, 2025. This move marks a strategic shift in the company’s operations as the divested entities are no longer part of Synertone, potentially impacting its market positioning and stakeholder interests.

Synertone Communication Corporation’s AGM Resolutions Unanimously Approved

Synertone Communication Corporation announced that all resolutions proposed at its Annual General Meeting on September 26, 2025, were unanimously approved by shareholders. The resolutions included the adoption of financial statements, reappointment of auditors, re-election of directors, and the approval of various mandates and schemes, indicating a strong consensus among stakeholders and a stable outlook for the company’s governance and operational strategies.