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

• Market Cap: HK$389.06M
• Dividend Yield: 2.94%
• Average Volume (3M): 485.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 2.22%
• EPS Growth: -434.25%
• Country: HK
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.08
• Shares Outstanding: 518,750,000
• 10 Day Avg. Volume: 535,800
• 30 Day Avg. Volume: 485,600
• PEG Ratio: -0.39
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 1.48
• P/FCF Ratio: -25.95
• 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: 57 Neutral
• Price Target: HK$0.66 ▼(-10.54% Downside)

The overall stock score of 57 reflects the mixed financial performance with strong balance sheet but significant cash flow concerns, positive technical indicators suggesting bullish momentum, and a challenging valuation due to negative earnings. The dividend yield offers some investor return, but operational and liquidity risks remain key concerns.

Positive Factors

Strong Equity Position

A high equity ratio indicates financial stability and low reliance on debt, providing a solid foundation for long-term growth and resilience against market fluctuations.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single sector, enhancing resilience and potential for sustained growth by capitalizing on various market opportunities.

Strategic Focus on High-Growth Sectors

Focusing on high-growth sectors allows the company to leverage emerging trends, driving innovation and potentially increasing market share and profitability over time.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth and profitability if not addressed.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and operational sustainability, necessitating improved cash management to support ongoing operations and strategic initiatives.

Decreasing Profit Margins

Decreasing profit margins suggest operational inefficiencies or increased costs, which could hinder the company's ability to invest in growth and maintain competitive advantage.

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 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 Money

MEGAIN Holding generates revenue through multiple streams, including investments in technology startups, real estate development projects, and financial services. The company earns income from equity stakes in its portfolio companies, management fees, and profit-sharing arrangements. Significant partnerships with industry leaders and access to capital markets enhance MEGAIN's ability to expand its business ventures and optimize returns. Additionally, the company's strategic focus on high-growth sectors positions it to benefit from market trends and consumer needs, contributing to its overall earnings.

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

Summary

MEGAIN Holding (Cayman) Co. Ltd. shows mixed financial health. The balance sheet is strong with high equity and low leverage, but declining revenues and negative margins indicate operational challenges. The absence of positive cash flow raises liquidity concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.30M	149.65M	172.39M	173.37M	167.87M	156.78M
Gross Profit	31.90M	48.25M	66.98M	90.63M	86.70M	87.07M
EBITDA	-9.45M	-3.95M	33.47M	60.44M	44.88M	40.69M
Net Income	-10.03M	9.66M	23.21M	44.89M	31.26M	28.75M
Balance Sheet
Total Assets	374.52M	410.19M	390.21M	404.27M	360.16M	197.24M
Cash, Cash Equivalents and Short-Term Investments	202.46M	229.19M	243.83M	277.13M	238.35M	123.47M
Total Debt	23.09M	10.62M	1.88M	3.97M	9.08M	1.59M
Total Liabilities	42.86M	39.40M	19.99M	40.48M	32.98M	23.37M
Stockholders Equity	331.66M	370.79M	370.22M	363.79M	327.18M	173.87M
Cash Flow
Free Cash Flow	-7.18M	-8.54M	-19.36M	49.02M	-6.50M	70.04M
Operating Cash Flow	1.25M	10.64M	-9.01M	55.47M	-4.47M	72.84M
Investing Cash Flow	-50.00M	-21.05M	-64.36M	-2.61M	-5.34M	-879.00K
Financing Cash Flow	-864.50K	-1.28M	-21.11M	-18.99M	126.73M	-31.24M

MEGAIN Holding (Cayman) Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.65, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6939	57 Neutral	HK$389.06M	-12.40	-8.35%	2.94%	2.22%	-434.25%
3336	55 Neutral	HK$1.73B	-3.19	-11.23%	―	-11.28%	-122.85%
2436	48 Neutral	HK$4.15B	-356.36	-1.60%	―	32.83%	90.24%
1079	43 Neutral	HK$470.81M	-25.58	-23.45%	―	29.21%	-137.50%
8159	42 Neutral	HK$57.02M	-1.32	-58.39%	―	2.76%	-141.34%
3638	40 Underperform	HK$474.42M	-13.56	-32.47%	―	-52.55%	-262.35%

MEGAIN Holding (Cayman) Co. Ltd. Corporate Events

MEGAIN Holding Halts Trading Pending Takeovers Code Announcement

MEGAIN Holding (Cayman) Co. Ltd. has requested a halt in trading of its shares on the Main Board of the Hong Kong Stock Exchange from 9:00 a.m. on 9 January 2026. The suspension comes as the company prepares to release an announcement under the Hong Kong Code on Takeovers and Mergers that will contain inside information, signaling a potential change in its corporate or ownership structure that could be material for shareholders and other stakeholders.

The most recent analyst rating on (HK:6939) stock is a Hold with a HK$0.66 price target. To see the full list of analyst forecasts on MEGAIN Holding (Cayman) Co. Ltd. stock, see the HK:6939 Stock Forecast page.