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MEGAIN Holding (Cayman) Co. Ltd. (HK:6939)
:6939
Hong Kong Market

MEGAIN Holding (Cayman) Co. Ltd. (6939) AI Stock Analysis

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HK

MEGAIN Holding (Cayman) Co. Ltd.

(6939)

Rating:60Neutral
Price Target:
HK$0.50
▲(6.38%Upside)
The overall stock score of MEGAIN Holding (Cayman) Co. Ltd. is 60, reflecting mixed financial performance, with significant strengths in its balance sheet counterbalanced by cash flow concerns. Technical analysis indicates a positive market trend, while valuation metrics suggest moderate pricing with a favorable dividend yield. These factors collectively influence the stock's potential attractiveness to investors.

MEGAIN Holding (Cayman) Co. Ltd. (6939) vs. iShares MSCI Hong Kong ETF (EWH)

MEGAIN Holding (Cayman) Co. Ltd. Business Overview & Revenue Model

Company DescriptionMEGAIN 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 integrated circuits and other cartridge components, including plastic parts and toners, as ancillary services to its customers; and provides technical and design services for chips at the request of customers. The company was incorporated in 2016 and is headquartered in Zhuhai, the People's Republic of China.
How the Company Makes MoneyMEGAIN Holding (Cayman) Co. Ltd. generates revenue primarily through the sale of its printing consumables, including printer cartridges and related products. The company earns money by supplying these products to both individual consumers and businesses, capitalizing on the ongoing demand for printer supplies. MEGAIN's revenue streams are bolstered by its distribution network and partnerships with retailers and suppliers, ensuring wide availability and accessibility of its products in various markets.

MEGAIN Holding (Cayman) Co. Ltd. Financial Statement Overview

Summary
MEGAIN Holding (Cayman) Co. Ltd. shows a mixed financial performance. The income statement indicates declining revenues and negative EBIT/EBITDA margins, suggesting operational challenges. The balance sheet is strong with a high equity ratio and low leverage, but cash flow concerns are significant due to zero operating, investing, and free cash flows, indicating potential liquidity issues.
Income Statement
55
Neutral
The company has experienced a decline in total revenue from the previous year, decreasing from $172.39 million to $149.65 million, indicating a negative revenue growth rate. The gross profit margin stands at approximately 32.24%, reflecting a reasonable level of cost management, but the net profit margin decreased to 6.46% due to a reduction in net income. Notably, EBIT and EBITDA margins have turned negative, highlighting operational challenges. These factors suggest moderate profitability with potential risks to revenue stability.
Balance Sheet
68
Positive
The company maintains a strong equity position with a high equity ratio of 90.39%, indicating financial stability and low reliance on debt financing. The debt-to-equity ratio is low at 0.03, suggesting prudent leverage. However, the return on equity has decreased slightly due to lower net income, which could impact overall shareholder returns. Overall, the balance sheet remains solid with a strong equity base and low leverage risk.
Cash Flow
30
Negative
The company reported zero operating, investing, and free cash flows for the latest period, which raises concerns about cash flow generation and liquidity. Previously, the free cash flow was negative, indicating cash flow challenges. The absence of cash flow metrics in the current year suggests potential liquidity constraints and a need for careful cash management to support operations and growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue149.65M172.39M173.37M167.87M156.78M
Gross Profit48.25M66.98M90.63M86.70M87.07M
EBITDA-3.95M33.47M60.44M44.88M40.69M
Net Income9.66M23.21M44.89M31.26M28.75M
Balance Sheet
Total Assets410.19M390.21M404.27M360.16M197.24M
Cash, Cash Equivalents and Short-Term Investments229.19M243.83M277.13M238.35M123.47M
Total Debt10.62M1.88M3.97M9.08M1.59M
Total Liabilities39.40M19.99M40.48M32.98M23.37M
Stockholders Equity370.79M370.22M363.79M327.18M173.87M
Cash Flow
Free Cash Flow-8.54M-19.36M49.02M-12.73M70.04M
Operating Cash Flow10.64M-9.01M55.47M-4.47M72.84M
Investing Cash Flow-21.05M-64.36M-2.61M-5.34M-879.00K
Financing Cash Flow-1.28M-21.11M-18.99M126.73M-31.24M

MEGAIN Holding (Cayman) Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.47
Price Trends
50DMA
0.46
Positive
100DMA
0.46
Positive
200DMA
0.48
Negative
Market Momentum
MACD
<0.01
Negative
RSI
50.70
Neutral
STOCH
36.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6939, the sentiment is Neutral. The current price of 0.47 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.46, and below the 200-day MA of 0.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6939.

MEGAIN Holding (Cayman) Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
60
Neutral
HK$243.81M23.272.61%4.19%-14.89%-59.44%
DEPNY
€9.61M0.29-16.24%
DEJTI
€112.50M-10.39%
HK$63.36M-52.67%
63
Neutral
HK$325.99M15.28-31.98%-37.58%
45
Neutral
HK$999.72M-7.86%29.97%53.06%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6939
MEGAIN Holding (Cayman) Co. Ltd.
0.47
-0.13
-21.67%
DE:PNY
Pine Technology Holdings Limited
DE:JTI
Ju Teng International Holdings Limited
0.11
-0.02
-15.38%
HK:8159
Glory Mark Hi-Tech (Holdings) Ltd
0.09
0.00
0.00%
HK:2436
LX Technology Group Limited
2.83
-1.97
-41.04%
HK:3638
Huabang Technology Holdings Limited
9.40
2.56
37.43%

MEGAIN Holding (Cayman) Co. Ltd. Corporate Events

MEGAIN Holding Announces Successful AGM Results
Jun 6, 2025

MEGAIN Holding (Cayman) Co., Ltd. announced the results of its Annual General Meeting held on June 6, 2025. The company successfully passed all resolutions, including the approval of audited financial statements, re-election of a non-executive director, re-appointment of the auditor, and granting mandates for share issuance and repurchase. These decisions reflect strong shareholder support and may positively impact the company’s governance and financial flexibility.

MEGAIN Holding Announces 2025 AGM with Key Resolutions
Apr 28, 2025

MEGAIN Holding (Cayman) Co., Ltd. has announced its upcoming annual general meeting (AGM) to be held on June 6, 2025, via an eVoting Portal. The meeting will address several key resolutions, including the approval of the audited financial statements for 2024, the re-election of Mr. Lam Tsz Leung as a non-executive director, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the AGM will consider resolutions to authorize the directors to allot and issue additional ordinary shares, subject to certain conditions. This meeting is crucial for stakeholders as it will determine the company’s financial and strategic direction for the coming year.

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.Date of analysis: Jun 24, 2025