Synertone Communication Corporation (1613) AI Stock Analysis

• Market Cap: HK$105.90M
• Dividend Yield: N/A
• Average Volume (3M): 319.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 86.85%
• EPS Growth: -36.65%
• Country: HK
• Employees: 79
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): -0.05
• Shares Outstanding: 448,741,460
• 10 Day Avg. Volume: 164,332
• 30 Day Avg. Volume: 319,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 108.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's weak financial performance and valuation metrics. The technical analysis also suggests a bearish trend, further weighing down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

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 Communication Corporation generates revenue through multiple streams, primarily by selling its telecommunications equipment and services to businesses and government entities. The company employs a business-to-business (B2B) model, where it manufactures and sells hardware such as antennas and communication systems, often tailored to meet the specific needs of its clients. Additionally, Synertone offers maintenance and support services, which provide ongoing revenue through service contracts. Strategic partnerships with technology firms and government agencies also contribute to its earnings, as these collaborations often lead to large-scale contracts and projects that enhance its market presence. Furthermore, the company's focus on innovation in IoT applications opens up new revenue opportunities in emerging markets.

Synertone Communication Corporation Financial Statement Overview

Summary

Synertone Communication Corporation faces significant financial challenges, with negative net income and EBIT margins indicating operational losses. The balance sheet shows moderate leverage, but persistent negative operating cash flows raise concerns about liquidity and sustainability.

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	-7.50M	-26.20M	-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: 0.24
• 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:1613, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.25, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.43 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
1720	71 Outperform	HK$143.00M	6.25	3.56%	―	8.78%	160.00%
1473	70 Outperform	HK$539.12M	14.89	13.21%	2.20%	53.77%	―
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%
1617	59 Neutral	HK$221.17M	3.28	7.41%	―	-9.34%	605.26%
0947	41 Neutral	HK$114.02M	―	-29.56%	―	-12.03%	-40.38%
1613	41 Neutral	HK$105.90M	―	-29.38%	―	86.85%	-36.65%
0482	―	HK$109.51M	―		―	―	―

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.