Brainhole Technology Limited (2203) AI Stock Analysis

• Market Cap: HK$169.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -45.66%
• EPS Growth: -275.12%
• Country: HK
• Employees: 267
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 2,061,000
• 30 Day Avg. Volume: 2,733,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by negative profitability and cash flow issues. Technical analysis provides some short-term positive signals, but these are overshadowed by the significant financial risks. Valuation metrics further highlight the company's challenges, with a negative P/E ratio and no dividend yield.

Brainhole Technology Limited Business Overview & Revenue Model

Company Description

Brainhole Technology Limited, an investment holding company, engages in the assembly, packaging, and sale of discrete semiconductors with a primary focus on applications for smart consumer electronic devices. The company operates through Manufacturing; Trading; and Broadband Infrastructure and Smart Domain segments. It constructs residential fiber-optical network; and provides survey, design, construction, and inspection services and unified operator access, as well as communication solutions for fixed line, broadband, mobile terminals and WIFI coverage. The company also offers intelligent community and building solutions based on Internet of Things and cloud computing; smart home and digital home solutions comprising control system integrated with automatic control applications, computer network system, and network communication technologies; and smart city village solutions, as well as smart controls, security, and other products. In addition, its semiconductor products include diodes, transistors, rectifiers, and transient voltage suppressors. The company's products are used in consumer and industrial portable electronics, such as mobile phones, display monitors, LED televisions, portable electronic equipment, and power supplies manufactured primarily by OEM/ODM manufacturers for consumer electronic brands. Further, it is involved in the trading of semiconductors sourced from third-party suppliers; and provision of management services, as well as holds trademark. It operates in the People's Republic of China, Hong Kong, Korea, Rest of Asia, Europe, and internationally. The company was formerly known as Top Dynamic International Holdings Limited. The company was founded in 2012 and is based in Cheung Sha Wan, Hong Kong. Brainhole Technology Limited is a subsidiary of Yoho Bravo Limited.

How the Company Makes Money

Brainhole Technology Limited generates revenue through the sale of its advanced electronic products and solutions. The company has established a diversified revenue model that includes direct sales to consumers, partnerships with other companies for product distribution, and potential service agreements for maintenance and support of their technology solutions. Significant factors contributing to its earnings include its ability to innovate and adapt to market demands, strategic partnerships, and its reputation in delivering high-quality products. The company might also engage in licensing agreements or collaborations that provide additional revenue streams.

Brainhole Technology Limited Financial Statement Overview

Summary

Brainhole Technology Limited is struggling financially, with declining revenues, poor profitability, and high leverage. The company's financial health is deteriorating, with significant risks highlighted by negative equity and inconsistent cash flows.

Income Statement

The company shows declining revenues and increasing losses over the years. The gross profit margin turned negative in 2024, and the net profit margin is consistently negative, indicating poor profitability. Revenue growth has been negative, with a significant drop in 2024.

Balance Sheet

The balance sheet reveals high financial risk with negative stockholders' equity in 2024 and a high debt-to-equity ratio. The equity ratio has declined sharply, indicating increasing leverage and financial instability.

Cash Flow

Cash flow statements show inconsistent cash flow generation. Operating cash flow has been negative or negligible in recent years, and free cash flow has been erratic, posing liquidity challenges for the company.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.99M	220.81M	263.57M	321.57M	261.81M
Gross Profit	-6.45M	27.63M	48.54M	54.11M	33.52M
EBITDA	-88.09M	-18.99M	-34.46M	-19.62M	-37.50M
Net Income	-127.88M	-34.12M	-57.61M	-51.55M	-58.76M
Balance Sheet
Total Assets	152.74M	279.20M	333.42M	353.63M	370.34M
Cash, Cash Equivalents and Short-Term Investments	74.80M	111.75M	96.73M	42.64M	74.15M
Total Debt	163.71M	138.78M	147.44M	84.93M	113.13M
Total Liabilities	211.81M	212.43M	231.84M	211.31M	183.70M
Stockholders Equity	-59.07M	66.76M	101.58M	142.32M	186.64M
Cash Flow
Free Cash Flow	-39.49M	27.21M	-113.92M	-4.96M	-18.72M
Operating Cash Flow	-38.96M	32.19M	-106.08M	-535.00K	-4.92M
Investing Cash Flow	4.23M	6.00M	11.45M	1.48M	-55.08M
Financing Cash Flow	19.45M	-20.10M	76.53M	-31.00M	80.58M

Brainhole Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2203, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2203.

Brainhole Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8257	65 Neutral	HK$69.00M	8.21	3.83%	―	-13.07%	-34.88%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
1967	59 Neutral	HK$141.00M	66.67	0.60%	―	6.98%	―
1679	51 Neutral	HK$53.70M	―		―	27.19%	54.52%
1912	46 Neutral	HK$90.05M	―	-42.18%	―	-6.19%	18.71%
2203	45 Neutral	HK$169.60M	―	-3324.55%	―	-45.66%	-275.12%
8490	45 Neutral	HK$91.72M	68.18	-21.90%	―	-8.34%	-8828.57%

Brainhole Technology Limited Corporate Events

Brainhole Technology Announces Disposal of Beike Shares

Brainhole Technology Limited has announced the disposal of 147,000 Beike Shares in the open market for approximately HK$7.4 million. This transaction, when combined with previous disposals of Beike ADS, constitutes a discloseable transaction under Hong Kong’s Listing Rules, as the aggregate consideration exceeds 5% but is less than 25% of applicable percentage ratios. This move results in the company holding no remaining Beike Shares or Beike ADS, potentially impacting its investment portfolio and financial strategy.

Brainhole Technology Limited Announces Strategic Securities Transactions

Brainhole Technology Limited announced the acquisition of 13,600 Robinhood shares and 3,600 Coinbase shares, each for approximately US$1.3 million, and the disposal of 324,000 BigBear shares for approximately US$2.8 million. These transactions, conducted on July 9, 2025, are considered discloseable under Hong Kong’s Listing Rules due to their percentage ratios, impacting the company’s financial positioning and compliance obligations.

Brainhole Technology Limited Strengthens Governance with New Nomination Committee

Brainhole Technology Limited has established a Nomination Committee to enhance its board governance by identifying and recommending suitable candidates for director positions. The committee, composed mainly of independent non-executive directors, will also oversee board performance evaluations and develop nomination guidelines, thereby reinforcing the company’s commitment to robust corporate governance and strategic leadership.

Brainhole Technology Announces Change in Share Registrar

Brainhole Technology Limited has announced a change in its Hong Kong Branch Share Registrar and Transfer Office, effective from 14 July 2025. The new registrar will be Union Registrars Limited, and all applications for registration of share transfers will be processed by them from that date. This change is part of the company’s operational adjustments and may impact shareholders who need to collect share certificates.

Brainhole Technology Limited Successfully Passes All AGM Resolutions

Brainhole Technology Limited announced that all resolutions proposed at its Annual General Meeting held on May 21, 2025, were passed by shareholders through a poll. The resolutions included the re-election of directors, authorization of director remuneration, reappointment of auditors, and granting of general mandates for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued strategic actions and governance alignment.