Brainhole Technology Limited (2203) AI Stock Analysis

• Market Cap: HK$192.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -47.92%
• EPS Growth: -869.15%
• Country: HK
• Employees: 267
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 944,100
• 30 Day Avg. Volume: 1,585,700
• PEG Ratio: >-0.01
• Price to Book (P/B): -3.06
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -4.58
• 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: 42 Neutral
• Price Target: HK$0.18 ▼(-17.27% Downside)

The overall stock score of 42 reflects significant financial challenges, including negative profitability and high leverage. Technical indicators suggest weak momentum, and valuation metrics highlight poor attractiveness due to negative earnings. The lack of earnings call data and corporate events further limits positive factors.

Positive Factors

Innovative Product Development

Brainhole Technology's commitment to innovation positions it well for long-term growth, as it can adapt to market demands and create new revenue streams.

Diversified Revenue Model

A diversified revenue model reduces dependency on any single income source, enhancing financial stability and resilience against market fluctuations.

Strategic Partnerships

Strategic partnerships can expand market reach and distribution capabilities, providing a competitive edge and supporting sustainable revenue growth.

Negative Factors

Declining Revenue

Declining revenues indicate potential market share loss and reduced demand, challenging the company's ability to sustain operations and invest in growth.

High Leverage

High leverage limits financial flexibility and increases risk, as the company may struggle to meet debt obligations during downturns.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and challenges in generating sufficient cash to fund operations, impacting long-term viability.

Brainhole Technology Limited Business Overview & Revenue Model

Company Description

Brainhole Technology Limited (2203) is a forward-thinking company specializing in the development and implementation of advanced artificial intelligence solutions and data analytics services. Operating primarily within the tech sector, the company focuses on creating cutting-edge software applications designed to enhance decision-making processes across various industries, including finance, healthcare, and logistics. With a commitment to innovation, Brainhole Technology provides a suite of products that leverage machine learning and big data analytics to deliver actionable insights and optimize operational efficiency for its clients.

How the Company Makes Money

Brainhole Technology Limited generates revenue through multiple key streams, primarily focusing on the sales of its proprietary software solutions and data analytics services. The company employs a subscription-based model for its software products, allowing clients to access continuous updates and support for a recurring fee. Additionally, Brainhole Technology engages in consulting services that assist businesses in integrating AI-driven solutions into their existing systems, which further contributes to its revenue. Strategic partnerships with cloud service providers and enterprise software firms enhance its market reach and provide bundled offerings that attract a wider clientele. Furthermore, the company may also earn revenue through licensing agreements for its technology and intellectual property, ensuring a diversified income portfolio.

Brainhole Technology Limited Financial Statement Overview

Summary

Brainhole Technology Limited is facing significant financial challenges with declining revenues, negative profitability margins, and high leverage. The company's financial health is concerning, with negative cash flows and a high debt-to-equity ratio, indicating potential liquidity and solvency risks.

Income Statement

The company has been experiencing declining revenues with a negative revenue growth rate of -14.79% TTM. Gross profit margin is negative at -9.31%, indicating costs exceed revenues. Net profit margin is significantly negative at -163.65%, reflecting substantial losses. EBIT and EBITDA margins are also deeply negative, showing operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is high at 2.28 TTM, indicating significant leverage and potential financial risk. Return on equity is positive at 9.36% TTM, which is unusual given the negative net income, suggesting potential accounting anomalies. The equity ratio is low, indicating a reliance on debt financing.

Cash Flow

Operating cash flow is negative, indicating cash outflows from operations. Free cash flow is also negative, with a growth rate of -19.71% TTM, suggesting deteriorating cash generation. The operating cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.08M	119.99M	220.81M	263.57M	321.57M	261.81M
Gross Profit	-8.30M	-6.45M	27.63M	48.54M	54.11M	33.52M
EBITDA	-74.86M	-88.09M	-18.99M	-34.46M	-19.62M	-37.50M
Net Income	-145.78M	-127.88M	-34.12M	-57.61M	-51.55M	-58.76M
Balance Sheet
Total Assets	135.27M	152.74M	279.20M	333.42M	353.63M	370.34M
Cash, Cash Equivalents and Short-Term Investments	76.59M	74.80M	111.75M	107.92M	42.64M	74.15M
Total Debt	63.70M	163.71M	138.78M	147.44M	84.93M	113.13M
Total Liabilities	107.35M	211.81M	212.43M	231.84M	211.31M	183.70M
Stockholders Equity	27.92M	-59.07M	66.76M	101.58M	142.32M	186.64M
Cash Flow
Free Cash Flow	-27.44M	-39.49M	27.21M	-113.92M	-4.96M	-18.72M
Operating Cash Flow	-27.13M	-38.96M	32.19M	-106.08M	-535.00K	-4.92M
Investing Cash Flow	18.27M	4.23M	6.00M	11.45M	1.48M	-55.08M
Financing Cash Flow	-15.14M	19.45M	-20.10M	76.53M	-31.00M	80.58M

Brainhole Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.21, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 64.70 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1967	59 Neutral	HK$126.00M	-15.29	-2.32%	―	-6.45%	-596.43%
8257	59 Neutral	HK$234.00M	27.98	3.83%	―	-13.07%	-34.88%
1912	43 Neutral	HK$98.83M	-0.87	―	―	―	―
2203	42 Neutral	HK$192.80M	-1.20	―	―	-47.92%	-869.15%
8490	41 Neutral	HK$81.13M	-1.07	-41.46%	―	-26.02%	-4977.27%
1679	39 Underperform	HK$100.35M	-0.76	―	―	37.63%	56.51%

Brainhole Technology Limited Corporate Events

Brainhole Technology Announces Strategic Securities Transactions

Brainhole Technology Limited has announced two significant financial transactions involving the acquisition and disposal of listed securities. The company acquired 34,300 shares of Canadian Solar for approximately US$1.0 million, funded by the proceeds from the disposal of 11,300 Robinhood shares for about US$1.3 million. These transactions are classified as discloseable under the Hong Kong Stock Exchange Listing Rules, impacting the company’s financial strategy and market positioning.

Brainhole Technology Granted Waiver for Circular Dispatch Delay

Brainhole Technology Limited has been granted a waiver from strict compliance with Rule 14.41(a) of the Listing Rules by the Hong Kong Stock Exchange, allowing for a delay in the dispatch of a circular related to its further acquisition of TeraWulf shares. The waiver permits the company to send out the circular by December 23, 2025, providing additional time to finalize necessary financial information and disclosures, which may impact the company’s transaction timeline and stakeholder communications.

Brainhole Technology Limited Engages in Strategic Securities Transactions

Brainhole Technology Limited announced the further acquisition of 14,700 Nebius shares for approximately US$1.9 million and the disposal of 126,000 TeraWulf shares for the same amount. These transactions are considered discloseable under Hong Kong’s Listing Rules, impacting the company’s investment portfolio and market positioning in the technology sector.

Brainhole Technology Limited Announces Disposal of Nebius Shares

Brainhole Technology Limited has announced the disposal of 15,300 shares of Nebius, a technology company based in the Netherlands that specializes in AI infrastructure, through an open market transaction. This disposal, valued at approximately US $1.9 million, is expected to result in a gain of about US $0.8 million for Brainhole Technology Limited. The transaction is classified as a discloseable transaction under the Listing Rules, which may impact the company’s financial standing and market perception.

Brainhole Technology Granted Waiver for Circular Dispatch Delay

Brainhole Technology Limited, a company incorporated in the Cayman Islands, announced a delay in the dispatch of a circular related to the further disposal of Robinhood shares, which is a major transaction under Chapter 14 of the Listing Rules. The company has been granted a waiver from strict compliance with Rule 14.41(a) by the Stock Exchange, allowing them to dispatch the circular by November 21, 2025, due to the need for additional time to finalize financial information.

Brainhole Technology Expands Investment in TeraWulf

Brainhole Technology Limited has announced a further acquisition of 100,800 TeraWulf shares for approximately US$1.5 million. This acquisition, combined with previous purchases, totals approximately US$2.8 million, making it a discloseable transaction under Hong Kong’s Listing Rules. The acquisition was financed by proceeds from the disposal of Robinhood shares, and the transaction is expected to impact the company’s investment portfolio by increasing its stake in TeraWulf, a digital asset technology company.

Brainhole Technology Limited Announces Major Disposal of Robinhood Shares

Brainhole Technology Limited has announced a major transaction involving the further disposal of 12,700 Robinhood Shares, generating approximately US$1.9 million. This transaction, when aggregated with previous disposals, constitutes a major transaction under the Hong Kong Listing Rules, requiring shareholder approval, which has been obtained from Yoho Bravo Limited, holding a significant majority of the company’s shares. No extraordinary general meeting will be convened as a result.

Brainhole Technology Limited Announces Key Securities Transactions

Brainhole Technology Limited has announced two significant transactions involving the acquisition and disposal of listed securities. On September 11, 2025, the company acquired 119,500 TeraWulf shares for approximately US$1.3 million and disposed of 14,400 Tempus shares for approximately US$1.2 million. Both transactions are classified as discloseable under the Hong Kong Listing Rules, as they exceed the 5% threshold but remain below 25%, necessitating public announcement and reporting.