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Brainhole Technology Limited (HK:2203)
:2203
Hong Kong Market

Brainhole Technology Limited (2203) AI Stock Analysis

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HK

Brainhole Technology Limited

(2203)

Rating:24Underperform
Price Target:
The stock score is primarily influenced by poor financial performance, with significant issues in profitability, revenue decline, and high leverage. Technical indicators show weak momentum, and valuation metrics reflect financial instability rather than growth potential.

Brainhole Technology Limited (2203) vs. iShares MSCI Hong Kong ETF (EWH)

Brainhole Technology Limited Business Overview & Revenue Model

Company DescriptionBrainhole 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 MoneyBrainhole Technology Limited generates revenue through the sale of its electronic components and systems to industrial clients. The company also derives income from its cloud-based services, which provide scalable and secure solutions for enterprise clients seeking to optimize their operations. Key revenue streams include direct sales of technology products and recurring revenue from service subscriptions. The company's growth is supported by strategic partnerships with industry leaders and ongoing investments in research and development to maintain a competitive edge in technological innovation.

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
15
Very Negative
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
10
Very Negative
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
20
Very Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
119.99M220.81M263.57M321.57M261.81M
Gross Profit
-6.45M27.63M48.54M54.11M33.52M
EBIT
-80.26M-30.66M-19.03M-30.59M-27.07M
EBITDA
-88.09M-18.99M-34.46M-19.62M-37.50M
Net Income Common Stockholders
-127.88M-34.12M-57.61M-51.55M-58.76M
Balance SheetCash, Cash Equivalents and Short-Term Investments
74.80M111.75M96.73M42.64M74.15M
Total Assets
152.74M279.20M333.42M353.63M370.34M
Total Debt
163.71M138.78M147.44M84.93M113.13M
Net Debt
137.14M96.31M121.29M42.28M38.98M
Total Liabilities
211.81M212.43M231.84M211.31M183.70M
Stockholders Equity
-59.07M66.76M101.58M142.32M186.64M
Cash FlowFree Cash Flow
0.0027.21M-113.92M-4.96M-18.72M
Operating Cash Flow
0.0032.19M-106.08M-535.00K-4.92M
Investing Cash Flow
0.006.00M11.45M1.48M-55.08M
Financing Cash Flow
0.00-20.10M76.53M-31.00M80.58M

Brainhole Technology Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.18
Price Trends
50DMA
0.18
Negative
100DMA
0.20
Negative
200DMA
0.20
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.08
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2203, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2203.

Brainhole Technology Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.97B10.29-7.47%2.99%7.32%-8.06%
24
Underperform
HK$144.80M-3324.55%-45.66%-275.12%
$31.11M
$50.63M-1.27%20.61%
$14.97B5.0822.05%6.88%
DECUV
€1.12B-26.60%
53
Neutral
HK$190.46M53.14-8.51%8.47%-10.93%-143.61%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2203
Brainhole Technology Limited
0.18
0.04
28.57%
FESTF
Hybrid Kinetic Group
0.20
0.00
0.00%
KMSWF
Kingmaker Footwear Holdings
0.05
-0.03
-37.50%
YZCHF
Yankuang Energy Group Company Limited Class H
1.03
-0.37
-26.43%
DE:CUV
Realord Group Holdings Limited
0.75
0.11
17.19%
HK:1181
Tang Palace (China) Holdings Limited
0.18
-0.20
-52.63%

Brainhole Technology Limited Corporate Events

Brainhole Technology Limited Announces Annual General Meeting
Apr 17, 2025

Brainhole Technology Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, in Hong Kong. Key agenda items include the consideration of financial statements, re-election of directors, and the reappointment of auditors. Additionally, shareholders will vote on resolutions granting the board authority to issue shares and manage director remuneration, which could impact the company’s governance and shareholder relations.

Brainhole Technology Reports Significant Revenue Decline in 2024
Mar 31, 2025

Brainhole Technology Limited reported its audited consolidated results for the year ended December 31, 2024, revealing a significant decline in revenue from HK$220,807,000 in 2023 to HK$119,991,000 in 2024, resulting in a gross loss of HK$6,452,000. The company faced a total comprehensive expense of HK$130,028,000, highlighting challenges in its financial performance and market positioning.

Brainhole Technology Limited Issues Profit Warning Amidst Global Trade Tensions
Mar 27, 2025

Brainhole Technology Limited has issued a profit warning, anticipating a significant increase in net loss for the year ended December 31, 2024, compared to the previous year. The losses are attributed to global trade tensions affecting the semiconductor business and fluctuations in financial markets impacting investment securities trading. Despite these challenges, the company is adjusting its production scale and investment strategy, while also exploring new business opportunities and partnerships to drive future growth. The Board remains optimistic about the company’s long-term growth and development.

Brainhole Technology Limited Announces Strategic Securities Transactions
Feb 25, 2025

Brainhole Technology Limited has announced two significant transactions involving the acquisition and disposal of listed securities. The company acquired 26,300 Innodata shares for approximately US$1.5 million and disposed of 66,800 Beike ADS for approximately US$1.4 million. These transactions are classified as discloseable under the Hong Kong Stock Exchange Listing Rules, indicating a strategic move to optimize the company’s investment portfolio and potentially impact its financial standing and stakeholder interests.

Brainhole Technology Limited Engages in Strategic Securities Transactions
Feb 23, 2025

Brainhole Technology Limited announced the acquisition of 36,900 Innodata shares for approximately US$2.6 million, financed through internal resources. Concurrently, the company completed the disposal of 50,400 Robinhood shares for about US$2.9 million, marking its exit from holdings in Robinhood. These transactions, conducted in the open market, are deemed discloseable under the Hong Kong Listing Rules, reflecting the company’s active portfolio management to optimize asset holdings.

Brainhole Technology Announces Strategic Disposal of Beike ADS
Feb 19, 2025

Brainhole Technology Limited announced a supplemental update regarding its recent financial activities, specifically the disposal of Beike ADS, a type of listed security. The company disclosed that it has completed a series of transactions involving Beike ADS within a 12-month period, resulting in a total consideration of approximately US$2.8 million. These transactions are part of the company’s strategic financial management and are considered one under the Hong Kong Stock Exchange’s listing rules. This move aligns with Brainhole Technology’s efforts to manage its investment portfolio effectively, potentially impacting its financial positioning and shareholder interests.

Brainhole Technology Limited Announces Strategic Securities Transactions
Feb 14, 2025

Brainhole Technology Limited announced further acquisition and disposal activities involving listed securities. The company acquired 103,200 BigBear Shares for approximately US$1.0 million and disposed of 57,700 Beike ADS for approximately US$1.2 million, both transactions being classified as discloseable under Hong Kong’s Listing Rules. These transactions illustrate the company’s strategic adjustments in its investment portfolio, potentially impacting its market positioning and stakeholder interests.

Brainhole Technology Limited Announces Further Disposal of XPeng Shares
Feb 13, 2025

Brainhole Technology Limited announced a further disposal of 51,000 XPeng shares through the open market, resulting in proceeds of approximately US$0.8 million. This transaction, when aggregated with previous disposals within a 12-month period, totals approximately US$2.4 million and constitutes a discloseable transaction under Hong Kong’s Listing Rules. The company no longer holds any XPeng shares following these transactions, potentially impacting its investment portfolio and market strategy. XPeng, a designer and manufacturer of smart electric vehicles, reported significant revenues but also net losses for the past two financial years.

Brainhole Technology Engages in Strategic Securities Transactions
Feb 11, 2025

Brainhole Technology Limited has announced two significant financial transactions involving the acquisition and disposal of listed securities. The company acquired 220,800 shares of BigBear for approximately US$1.9 million and disposed of 28,600 shares of Affirm for approximately US$2.2 million, both transactions being classified as discloseable under regulatory rules. These transactions reflect the company’s strategic portfolio management and could impact its financial positioning and stakeholder interests.

Brainhole Technology Expands Investment Portfolio with New Acquisitions
Feb 5, 2025

Brainhole Technology Limited has announced further acquisitions of shares in Affirm and Robinhood, marking a significant expansion of its investment portfolio. These transactions, each valued at approximately US$0.5 million, are part of a broader strategy involving the acquisition of securities over a 12-month period, leading to their classification as discloseable transactions under Hong Kong’s Listing Rules. The acquisitions reflect the company’s strategic positioning in the financial markets, potentially impacting its stakeholders by increasing its investment footprint and adhering to regulatory requirements.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.