Broncus Holding Corp. (2216) AI Stock Analysis

• Market Cap: HK$1.27B
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -30.60%
• EPS Growth: 28.61%
• Country: HK
• Employees: 200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.16
• Shares Outstanding: 528,237,060
• 10 Day Avg. Volume: 1,907,700
• 30 Day Avg. Volume: 2,030,864
• PEG Ratio: 0.05
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 4.56
• P/FCF Ratio: -3.60
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: HK$2.50 ▲(10.13% Upside)

Broncus Holding Corp.'s stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and significant losses. Technical analysis further supports a bearish outlook, and valuation metrics highlight ongoing financial difficulties. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates efficient cost management and pricing power, which can support profitability as revenue stabilizes.

Strong Equity Position

A strong equity position with minimal leverage provides financial stability and flexibility for future investments and growth.

Innovative Product Focus

Focus on innovative medical technologies for lung diseases positions the company to benefit from growing healthcare needs and advancements.

Negative Factors

Revenue Decline

Ongoing revenue decline suggests challenges in market demand or competitive positioning, impacting long-term growth prospects.

Cash Flow Challenges

Significant cash flow challenges limit the company's ability to invest in growth opportunities and manage operational needs effectively.

Profitability Issues

Severe profitability issues with negative margins indicate operational inefficiencies and potential difficulties in achieving sustainable earnings.

Broncus Holding Corp. Business Overview & Revenue Model

Company Description

Broncus Holding Corp. (2216) is a biotechnology company focused on developing innovative medical devices and solutions for the diagnosis and treatment of lung diseases. Operating primarily in the healthcare sector, Broncus specializes in advanced bronchoscopic technologies aimed at improving patient outcomes in respiratory care. Its core products include bronchial thermoplasty devices and other therapeutic solutions designed to treat conditions such as asthma and lung cancer.

How the Company Makes Money

Broncus Holding Corp. generates revenue primarily through the sale of its medical devices and related products to hospitals, clinics, and healthcare providers. Key revenue streams include direct sales of its bronchoscopic devices and consumables, as well as recurring revenue from service agreements and product maintenance. The company may also engage in partnerships with other medical technology firms and research institutions to enhance its product offerings and expand its market reach. Additionally, Broncus may benefit from reimbursement programs and funding from healthcare systems, which facilitate the adoption of its technologies in clinical settings.

Broncus Holding Corp. Financial Statement Overview

Summary

Broncus Holding Corp. faces significant financial challenges, including declining revenues, persistent net losses, and negative cash flow. While the company maintains a strong gross profit margin and equity position, these are overshadowed by severe profitability and liquidity issues.

Income Statement

Broncus Holding Corp. displays a challenging income statement profile with consistent revenue declines from 2021 to 2024, despite experiencing a peak in 2020. The gross profit margin remains high at around 75.5% in 2024, reflecting efficient cost management relative to revenue. However, significant net losses and negative EBIT and EBITDA margins, particularly in 2024 with a net profit margin of -188.23%, indicate persistent profitability issues.

Balance Sheet

The balance sheet shows a strong equity position with a high equity ratio of 96.36% in 2024, suggesting good asset coverage by equity. The debt-to-equity ratio is low at 0.0019, indicating minimal leverage. However, the company has experienced declines in total assets and stockholder equity over time, posing potential risks if trends continue.

Cash Flow

Broncus Holding Corp. faces significant cash flow challenges. The operating cash flow to net income ratio indicates a disconnect between earnings and cash flow generation, as evidenced by zero operating cash flow in 2024. The lack of free cash flow growth and historically negative free cash flow further stress the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.08M	8.13M	10.26M	9.41M	10.89M	3.26M
Gross Profit	4.40M	6.14M	7.23M	7.32M	8.74M	2.51M
EBITDA	-20.69M	-18.96M	-25.06M	-30.58M	-233.31M	-45.95M
Net Income	-15.15M	-15.30M	-28.09M	-28.04M	-236.18M	-48.24M
Balance Sheet
Total Assets	165.67M	175.90M	195.81M	221.94M	252.81M	39.88M
Cash, Cash Equivalents and Short-Term Investments	130.52M	139.11M	156.88M	187.91M	227.21M	18.79M
Total Debt	47.00K	318.00K	2.35M	1.47M	1.95M	6.12M
Total Liabilities	5.29M	6.42M	10.44M	8.48M	10.39M	162.32M
Stockholders Equity	160.38M	169.48M	185.37M	213.46M	242.42M	-120.51M
Cash Flow
Free Cash Flow	-5.99M	-10.32M	-26.84M	-31.81M	-33.38M	-16.76M
Operating Cash Flow	-5.91M	-10.00M	-26.13M	-30.95M	-31.49M	-15.59M
Investing Cash Flow	-21.16M	-25.91M	5.49M	-87.57M	-1.75M	-1.09M
Financing Cash Flow	-3.21M	-1.02M	-1.46M	-572.00K	241.82M	32.23M

Broncus Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2216, the sentiment is Negative. The current price of 2.27 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.65, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 31.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2216.

Broncus Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6609	55 Neutral	HK$1.93B	41.97	3.84%	―	32.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2170	44 Neutral	HK$588.08M	-2.23	-20.60%	―	11.43%	4.88%
2235	44 Neutral	HK$3.15B	-104.71	-1.39%	―	49.86%	80.35%
2160	43 Neutral	HK$2.68B	513.64	0.22%	―	-4.38%	―
2500	41 Neutral	HK$1.01B	-1.46	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.27B	-9.33	-8.93%	―	-30.60%	28.61%

Broncus Holding Corp. Corporate Events

Broncus Holding Corp. Updates on Share Issue and Strategic Fund Allocation

Broncus Holding Corp. has announced an update on its proposed issue of shares under a general mandate, with the completion of necessary regulatory approvals in progress. The company plans to utilize the net proceeds of approximately HK$326.5 million to fund research and development, commercialization efforts, and global expansion, including establishing an overseas headquarters in Ireland. This strategic allocation aims to enhance Broncus’s market positioning and operational capabilities in the medical devices sector.

Broncus Holding Corp. Announces Share Issue to Fund Expansion

Broncus Holding Corp. announced a proposed issue of shares under a general mandate, agreeing to allot and issue 105,108,015 subscription shares at HK$3.11 per share. This move, representing approximately 19.90% of the company’s issued share capital, is expected to raise gross proceeds of HK$326.9 million, which will support the company’s expansion in the medical devices industry. The completion of the subscription agreements is subject to certain conditions, and stakeholders are advised to exercise caution.