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): 0.90
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: HK$2.50 ▲(5.93% 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 Corporation, a medical device company, focuses on the development of interventional pulmonology products in Mainland China, the European Union, the United States, and internationally. The company provides navigation products, such as LungPoint Virtual Bronchoscopic Navigation, a computer-assisted image-based navigation software system; LungPoint Plus, a system that provides real-time navigation within the airways for lung biopsy and other procedures; and LungPro, a virtual bronchoscopic navigation product that provides three-dimensional real-time guided transbronchial needle aspiration and proprietary parenchymal navigation. It also offers treatment products comprising InterVapor, a targeted bronchoscopic thermal vapor ablation to ablate the diseased hyper-inflated lung segments; RF Generator + RF Ablation Catheter, a radiofrequency ablation system used in conjunction with a disposable lung radiofrequency ablation catheter, as well as radiofrequency ablation system that targets lung cancer; and H-Marker, a pulmonary surgical marker. In addition, the company provides treatment products, such as BioStarNeedle, a single use ultrasound-guided aspiration needle for retrieval of tissue samples; FleXNeedle, a multipurpose biopsy needle; Archimedes Sheath, a sterile single-use flexible tube that provides a working channel during a bronchoscopic procedure; Archimedes Dilation Balloon, a sterile single-use flexible tube with a balloon at or near the distal tip that is inserted through the bronchoscope or sheath and used to dilate the target lung tissue of the bronchial tree; and Steerable Sheath, a steerable sheath adjustment handle and a working channel. Broncus Holding Corporation was incorporated in 2012 and is headquartered in Hangzhou, China.

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: Neutral
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2216, the sentiment is Neutral. The current price of 2.36 is above the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.47, and below the 200-day MA of 2.42, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	60 Neutral	HK$2.37B	50.88	3.84%	―	32.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	46 Neutral	HK$7.64B	545.45	0.22%	―	-4.38%	―
2170	44 Neutral	HK$582.61M	-2.26	-20.60%	―	11.43%	4.88%
2235	44 Neutral	HK$3.15B	-103.74	-1.39%	―	49.86%	80.35%
2500	41 Neutral	HK$1.12B	-1.59	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.27B	-9.86	-8.93%	―	-30.60%	28.61%

Broncus Holding Corp. Corporate Events

Broncus Holding to Buy US$15 Million Stake in Structural Heart Intervention Player

Broncus Holding Corporation has agreed, through a wholly owned subsidiary, to acquire 157,800 Series B preferred shares in an unnamed target company for US$15 million, representing 1.05% of the target’s fully diluted share capital. The cash transaction, structured with 90% payable at closing and 10% following proof of tax payments by the seller, reflects Broncus’s confidence in the target’s business prospects and the growth potential of interventional treatments for mitral and tricuspid valves, and it qualifies as a discloseable transaction under Hong Kong listing rules, signaling a measured but strategic expansion of its stake in the structural heart intervention market. The deal remains subject to closing conditions, including the accuracy of purchaser representations and fulfillment of contractual obligations, so completion is not yet assured, and investors are cautioned about related trading risks.

The most recent analyst rating on (HK:2216) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Broncus Holding Corp. stock, see the HK:2216 Stock Forecast page.

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.

The most recent analyst rating on (HK:2216) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Broncus Holding Corp. stock, see the HK:2216 Stock Forecast page.

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.

The most recent analyst rating on (HK:2216) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Broncus Holding Corp. stock, see the HK:2216 Stock Forecast page.