Brainhole Technology Limited (2203) AI Stock Analysis

• Market Cap: HK$204.00M
• 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: 48 Neutral
• Price Target: HK$0.25 ▲(26.00% Upside)

The score is held down primarily by very weak financial performance (declining revenue, severe losses, negative cash flow, and high leverage). Technical indicators are comparatively supportive with price above key moving averages and a positive MACD, but momentum looks somewhat stretched. Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Recurring revenue model

A subscription-based software model creates durable recurring revenue and higher customer lifetime value versus one-off sales. Over 2-6 months this supports predictable cash inflows, retention-driven growth and easier upsell/expansion motions as product adoption matures across clients.

Diversified end-market exposure

Serving finance, healthcare and logistics spreads demand risk and aligns the company with multiple structural AI adoption trends. This diversification helps smooth sector cyclicality and increases addressable market opportunities, strengthening long-term revenue resilience.

Positive return on equity

A 9.36% ROE indicates the business can generate returns on shareholder capital despite headline losses, suggesting some capital or asset efficiency. If revenue stabilizes, this demonstrated ability to extract value from equity can support recovery without solely relying on new capital.

Negative Factors

Declining revenue

Sustained revenue contraction undermines scale economics and impairs the firm's ability to leverage fixed R&D and platform costs. Continued declines reduce bargaining power with partners, limit reinvestment capacity and raise execution risk over the medium term.

Deep negative margins

Negative gross and net margins indicate unit economics where costs exceed revenues, making business expansion dilutive. Without structural margin improvement (pricing, cost reduction or product mix shift), profitability is unlikely over the medium term and capital needs may persist.

Weak cash generation and high leverage

Negative operating and free cash flow combined with a 2.28 debt/equity ratio create solvency and liquidity pressure. This constrains investments, forces external financing or asset sales, and increases refinancing risk, limiting strategic flexibility over the coming months.

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

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

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 0.2 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.21, and below the 200-day MA of 0.20, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, 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%
8257	59 Neutral	HK$237.00M	28.33	3.83%	―	-13.07%	-34.88%
1967	57 Neutral	HK$126.00M	-15.11	-2.32%	―	-6.45%	-596.43%
2203	48 Neutral	HK$204.00M	-1.36	―	―	-47.92%	-869.15%
1912	43 Neutral	HK$89.61M	-0.82	―	―	―	―
8490	41 Neutral	HK$94.54M	-1.23	-41.46%	―	-26.02%	-4977.27%
1679	39 Underperform	HK$88.48M	-0.72	―	―	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.

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.

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.

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 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.

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, 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.

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.