MEGAIN Holding (Cayman) Co. Ltd. (HK:6939)
:6939
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MEGAIN Holding (Cayman) Co. Ltd.
(6939)
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Rating:53Neutral
Price Target:
HK$2.00
▲(170.27% Upside)
Action:Reiterated
Date:05/15/26
The score is held back mainly by weak financial performance driven by the 2025 margin and earnings collapse and inconsistent/negative cash generation. Technicals are comparatively supportive with the stock above major moving averages and neutral momentum, while valuation is constrained by negative earnings and no dividend data.
Positive Factors
Conservative balance sheet / low leverage
A conservatively levered balance sheet provides lasting financial flexibility: it reduces refinancing and solvency risk, supports continued operations through cyclical downturns, and gives management optionality to invest or restructure without immediate funding pressure.
Negative Factors
Severe margin and earnings collapse (2025)
A sudden, deep margin collapse and large net loss materially erode profitability and retained earnings, harming long-term return metrics. This indicates structural issues in pricing, costs, or product mix that can persist absent decisive operational or strategic remediation, pressuring recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
A conservatively levered balance sheet provides lasting financial flexibility: it reduces refinancing and solvency risk, supports continued operations through cyclical downturns, and gives management optionality to invest or restructure without immediate funding pressure.
Read all positive factors
MEGAIN Holding (Cayman) Co. Ltd. (6939) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.10B
Dividend Yield2.94%
Average Volume (3M)485.60K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth3.90%
EPS Growth-966.83%
CountryHK
Employees161
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.13
Shares Outstanding518,750,000
10 Day Avg. Volume535,800
30 Day Avg. Volume485,600
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.20
Price to Sales (P/S)2.28
P/FCF Ratio-9.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
MEGAIN Holding (Cayman) Co. Ltd. Business Overview & Revenue Model
Company Description
MEGAIN Holding (Cayman) Co., Ltd., an investment holding company, engages in the research, design, development, and sale of compatible cartridge chips and other chips in the People's Republic of China and internationally. It also trades in integra...
MEGAIN Holding (Cayman) Co. Ltd. Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
68
Positive
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 151.32M | 149.65M | 172.39M | 173.37M | 167.87M |
| Gross Profit | 8.49M | 48.25M | 66.98M | 90.63M | 86.70M |
| EBITDA | -47.57M | -3.95M | 33.47M | 60.44M | 44.88M |
| Net Income | -81.52M | 9.66M | 23.21M | 44.89M | 31.26M |
Balance Sheet | |||||
| Total Assets | 335.05M | 410.19M | 390.21M | 404.27M | 360.16M |
| Cash, Cash Equivalents and Short-Term Investments | 164.67M | 229.19M | 243.83M | 277.13M | 238.35M |
| Total Debt | 22.93M | 10.62M | 1.88M | 3.97M | 9.08M |
| Total Liabilities | 47.99M | 39.40M | 19.99M | 40.48M | 32.98M |
| Stockholders Equity | 286.32M | 370.79M | 370.22M | 363.79M | 327.18M |
Cash Flow | |||||
| Free Cash Flow | -38.06M | -8.54M | -19.36M | 49.02M | -6.50M |
| Operating Cash Flow | -17.36M | 10.64M | -9.01M | 55.47M | -4.47M |
| Investing Cash Flow | -8.79M | -21.05M | -64.36M | -2.61M | -5.34M |
| Financing Cash Flow | -697.00K | -1.28M | -21.11M | -18.99M | 126.73M |
MEGAIN Holding (Cayman) Co. Ltd. Technical Analysis
Positive
0.74
Price Trends
1.70
Positive
1.33
Positive
0.93
Positive
Market Momentum
0.10
Negative
67.55
Neutral
65.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6939, the sentiment is Positive. The current price of 0.74 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.70, and below the 200-day MA of 0.93, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.55 is Neutral, neither overbought nor oversold. The STOCH value of 65.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6939.
MEGAIN Holding (Cayman) Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | HK$1.10B | -4.23 | -20.60% | 2.94% | 3.90% | -966.83% | |
51 Neutral | HK$8.05B | 102.17 | 1.82% | ― | 0.92% | ― | |
45 Neutral | HK$2.51B | -3.67 | -11.23% | ― | -4.90% | 6.88% | |
42 Neutral | HK$399.48M | -12.55 | -23.45% | ― | 14.97% | -33.01% | |
42 Neutral | HK$46.68M | -0.61 | -61.10% | ― | 2.76% | -141.34% | |
39 Underperform | HK$303.09M | 392.28 | -39.83% | ― | -52.55% | -262.35% |
* Technology Sector Average
HK:6939
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MEGAIN Holding (Cayman) Co. Ltd. Corporate Events
Megain’s Share Subscription with Geehy Recast as Connected Deal Amid Takeover Move
May 21, 2026
Megain Holding has entered into subscription agreements with Geehy International Limited, under which Geehy will subscribe for 103,750,000 new shares at HK$0.61 each, representing 20% of the company’s existing share capital and about 16.67% ...
MEGAIN updates market on conditions for possible mandatory cash offer
May 13, 2026
MEGAIN Holding and Geehy International have issued a joint update on a possible unconditional mandatory cash offer for all MEGAIN shares not already owned or agreed to be acquired by the offeror and its concert parties. The offer remains contingen...
Megain Holding Sets June 2026 AGM, Seeks Fresh Share Issue Mandate
Apr 28, 2026
Megain Holding (Cayman) Co., Ltd. has called its annual general meeting for 29 June 2026, to be held via an eVoting portal, where shareholders will review and approve the group’s audited consolidated financial statements for the year ended 3...
MEGAIN Warns of Uncertainty as Conditions Stall Geehy’s Mandatory Cash Offer
Apr 13, 2026
Geehy International Limited, through ICBC International Capital as its financial adviser, has reiterated its intention to launch an unconditional mandatory cash offer for all issued shares of MEGAIN Holding not already owned or agreed to be acquir...
MEGAIN Holding Swings to Heavy 2025 Loss Despite Modest Revenue Growth
Mar 30, 2026
MEGAIN Holding reported a modest 3.8% increase in revenue to RMB155.3 million for 2025, but its gross profit plunged 81.9% to RMB8.7 million as cost of sales surged, eroding margins. The company swung from a net profit of RMB9.7 million in 2024 to...
Megain Holding Schedules Board Meeting to Approve 2025 Results and Consider Dividend
Mar 18, 2026
MEGAIN Holding (Cayman) Co., Ltd., a Cayman Islands-incorporated issuer listed in Hong Kong, is governed by a board that includes an executive chairman, non-executive directors and independent non-executive directors, reflecting a standard listed-...
MEGAIN warns of sharp 2025 loss amid margin squeeze and impairments
Mar 17, 2026
MEGAIN Holding (Cayman) Co. Ltd. has issued a profit warning, stating it expects to post a net loss of at least RMB60 million for the year ended 31 December 2025, compared with a net profit of about RMB9.7 million a year earlier. The reversal is m...
MEGAIN Holding Names Independent Adviser for Takeover Offer Review
Mar 16, 2026
MEGAIN Holding (Cayman) Co. Ltd. has appointed Lego Corporate Finance Limited as independent financial adviser to its Independent Board Committee in connection with a takeover offer from Geehy International Limited. Lego Corporate Finance, license...
MEGAIN warns cash offer may not proceed as deal conditions remain unmet
Mar 13, 2026
MEGAIN Holding (Cayman) Co. Ltd. and Geehy International Limited have issued a joint update on the proposed unconditional mandatory cash offer for all MEGAIN shares not already held by the offeror and its concert parties. The transaction hinges on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.