Brainhole Technology Limited (2203) AI Stock Analysis

• Market Cap: HK$160.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 46 Neutral
• Price Target: HK$0.20 ▼(-1.50% Downside)

The score is primarily held down by very weak financial performance (declining revenue, negative margins, negative operating/free cash flow, and high leverage). Technical indicators are somewhat supportive (price above key moving averages with positive MACD), but valuation is not compelling given the negative P/E and lack of dividend yield data.

Positive Factors

Recurring & diversified revenue streams

A subscription-based core with consulting and licensing creates multiple, recurring revenue channels that support predictable long-term revenue. Diversification across product and services reduces single-stream risk, aids customer retention, and enables scalable upsell and margin improvement over time.

Exposure to structural AI demand

Serving finance, healthcare and logistics positions the company in secular trends toward AI adoption across high-value industries. Cross-industry applicability increases addressable market and customer stickiness from integrations, supporting multi-year demand for analytics and ML solutions as enterprises digitalize.

Cloud and enterprise partnerships

Partnerships with cloud and enterprise software providers strengthen distribution, credibility and product integration, lowering go-to-market costs and accelerating enterprise adoption. These alliances enable scalable delivery and bundling opportunities that can materially improve long-term growth efficiency.

Negative Factors

Declining revenue and negative margins

Negative gross margin means product costs exceed sales, while a deeply negative net margin reflects sustained operating losses. These structural profitability issues impair the firm's ability to reinvest, demonstrate unit economics, or sustainably scale without fundamental changes to pricing, cost structure, or product mix.

Persistent negative operating and free cash flow

Ongoing cash outflows from operations and deteriorating free cash flow reduce financial flexibility and raise reliance on external funding. For a growth-stage software/AI business, persistent negative cash generation constrains R&D and sales investment, increasing refinancing and dilution risk over the medium term.

High leverage and solvency risk

A debt-to-equity ratio above 2 indicates significant leverage that heightens interest burdens and refinancing risk, particularly given operating losses. High debt limits strategic flexibility, pressures liquidity during downturns, and may force asset sales or dilutive capital raises to shore up the balance sheet.

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 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

Very weak fundamentals: revenues are declining (-14.79% TTM) with negative gross margin (-9.31%) and deeply negative net margin (-163.65%). Operations and cash generation are strained (negative operating cash flow and free cash flow), while leverage is high (debt-to-equity 2.28), elevating liquidity/solvency risk.

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: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.46 is Neutral, neither overbought nor oversold. The STOCH value of 9.83 is Positive, 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

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%
8257	59 Neutral	HK$242.00M	28.69	3.83%	―	-13.07%	-34.88%
1967	57 Neutral	HK$123.00M	-14.57	-2.32%	―	-6.45%	-596.43%
2203	46 Neutral	HK$160.80M	-1.10	―	―	-47.92%	-869.15%
1912	46 Neutral	HK$73.79M	-0.66	―	―	―	―
1679	45 Neutral	HK$127.33M	-0.99	―	―	37.63%	56.51%
8490	41 Neutral	HK$85.37M	-1.13	-41.46%	―	-26.02%	-4977.27%

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.

The most recent analyst rating on (HK:2203) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Brainhole Technology Limited stock, see the HK:2203 Stock Forecast page.

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.

The most recent analyst rating on (HK:2203) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Brainhole Technology Limited stock, see the HK:2203 Stock Forecast page.