Broncus Holding Corp. (2216) AI Stock Analysis

• Market Cap: HK$1.63B
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -20.99%
• EPS Growth: 45.74%
• Country: HK
• Employees: 200
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Devices
• EPS (TTM): -0.12
• Shares Outstanding: 528,188,960
• 10 Day Avg. Volume: 4,791,798
• 30 Day Avg. Volume: 5,315,171
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$3.00
• Price Target Upside: 5.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$3.00 ▲(5.63% Upside)

The overall stock score is primarily influenced by the challenging financial performance, particularly with profitability and cash flow issues. Strong technical indicators provide a positive offset, suggesting good market momentum. However, valuation concerns due to a negative P/E ratio and lack of dividends limit the score.

Broncus Holding Corp. Business Overview & Revenue Model

Company Description

Broncus Holding Corp. (2216) is a medical technology company that specializes in the development and commercialization of innovative diagnostic and therapeutic solutions for lung diseases. Focusing primarily on products for the diagnosis and treatment of lung cancer and other pulmonary conditions, Broncus Holding Corp. aims to improve patient outcomes through advanced medical technologies.

How the Company Makes Money

Broncus Holding Corp. makes money by developing and selling its proprietary medical devices and solutions to healthcare providers and institutions. Its revenue model primarily consists of direct sales of its diagnostic and therapeutic products, as well as potential licensing agreements and partnerships with other medical technology firms. The company may also engage in research collaborations and receive funding or grants related to its innovative work in the pulmonary field. These partnerships and collaborations help Broncus expand its market reach and accelerate the commercialization of new technologies.

Broncus Holding Corp. Financial Statement Overview

Summary

Broncus Holding Corp. exhibits significant financial challenges with consistent revenue declines and negative profitability metrics. Despite a high gross profit margin and low debt leverage, the persistent net losses and poor cash flow generation weigh heavily on its financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.13M	10.26M	9.41M	10.89M	3.26M
Gross Profit	6.14M	7.23M	7.32M	8.74M	2.51M
EBITDA	-18.96M	-25.06M	-25.51M	-233.31M	-45.95M
Net Income	-15.30M	-28.09M	-28.04M	-236.18M	-48.79M
Balance Sheet
Total Assets	175.90M	195.81M	221.94M	252.81M	39.88M
Cash, Cash Equivalents and Short-Term Investments	98.82M	156.88M	187.91M	227.21M	18.79M
Total Debt	318.00K	2.35M	1.47M	1.95M	6.12M
Total Liabilities	6.42M	10.44M	8.48M	10.39M	162.32M
Stockholders Equity	169.48M	185.37M	213.46M	242.42M	-120.51M
Cash Flow
Free Cash Flow	-10.32M	-26.84M	-31.81M	-33.38M	-16.76M
Operating Cash Flow	-10.00M	-26.13M	-30.95M	-31.49M	-15.59M
Investing Cash Flow	-25.91M	5.49M	-87.57M	-1.75M	-1.09M
Financing Cash Flow	-1.02M	-1.46M	-572.00K	241.82M	32.23M

Broncus Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.84 is above the 20-day moving average (MA) of 2.69, above the 50-day MA of 2.35, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 35.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2216.

Broncus Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$18.32B	5.45	-4.00%	3.31%	9.92%	-18.97%
2500	58 Neutral	HK$1.83B	―	-27.82%	―	-6.12%	0.43%
2216	57 Neutral	HK$1.63B	―	-8.64%	―	-20.99%	45.74%
2170	55 Neutral	HK$858.87M	―	-18.64%	―	41.62%	-22.27%
6609	53 Neutral	HK$2.19B	―	-1.28%	―	17.45%	85.71%
2160	51 Neutral	HK$3.40B	―	-2.19%	―	5.32%	89.43%

Broncus Holding Corp. Corporate Events

Broncus Holding Corp. Grants Performance-Based Awards to Employees

Broncus Holding Corporation announced the grant of 352,683 awards under its RSU Scheme to seven employees, representing approximately 0.07% of the total shares in issue. These awards are part of a performance-based vesting schedule aimed at rewarding employee contributions and aligning their interests with the company’s long-term growth. The awards will vest within three months, contingent on meeting specific performance targets. The initiative underscores the company’s commitment to retaining talent and fostering growth, with a significant number of shares still available for future grants under the scheme.

Broncus Holding Corp. Gains Approval for Innovative Lung Cancer Treatment System in China

Broncus Holding Corporation has announced that its BroncAblate® Lung Radiofrequency Ablation Generator has been approved for marketing in China by the National Medical Products Administration. This approval marks a significant step for the company as it begins the commercialization of the world’s first natural orifice transluminal radiofrequency ablation system for lung cancer. The system, which combines the BroncAblate® Generator and Catheter, offers a less invasive treatment option for lung tumors, potentially improving patient outcomes with fewer complications. This development positions Broncus Holding Corporation as a pioneer in the field of interventional lung cancer therapies, filling a global gap with its innovative approach.