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

• Market Cap: HK$643.25M
• Dividend Yield: 2.94%
• Average Volume (3M): 485.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 56 Neutral
• Price Target: HK$1.50 ▲(102.70% Upside)

The score is driven primarily by mixed financial performance—strong balance sheet strength but deteriorating revenue/profitability and weak cash flow visibility—partly offset by strong bullish technical momentum. Valuation is a headwind due to a negative P/E and no dividend yield data.

Positive Factors

Low leverage / strong equity base

A 90% equity ratio and very low debt-to-equity provide durable financial stability and flexibility. Over 2–6 months this reduces default and refinancing risk, enables opportunistic investment or M&A, and gives management room to support operations during cyclical downturns despite slightly lower ROE.

Diversified multi-stream business model

Multiple revenue streams across technology, financial services and real estate create structural resilience. This diversification smooths cash flow volatility, allows capital reallocation to higher-growth segments, and lowers reliance on any single market trend across a 2–6 month horizon.

Healthy gross margin

A ~32% gross margin indicates solid fundamental cost management and product mix strength. Sustained gross profitability supports long-term operating leverage if SG&A and operating issues are addressed, preserving the potential to restore positive operating margins over several quarters.

Negative Factors

Declining revenue

A notable year-over-year revenue decline erodes scale and competitive positioning. Persisting revenue contraction can reduce bargaining power with suppliers and customers, compress margins and free cash flow, and constrain reinvestment capacity over the medium term unless reversed.

Negative operating profitability

Negative EBIT/EBITDA margins signal core operations are not covering operating costs, undermining sustainable earnings generation. Structurally weak operating profitability limits funding for growth, increases reliance on balance-sheet resources, and raises execution risk absent structural cost or revenue fixes.

Very weak cash flow visibility

Zero reported operating, investing and free cash flow creates a lasting liquidity concern. Even with low leverage, absent positive cash generation the company may need external funding for capex, working capital or acquisitions, reducing strategic optionality and increasing financial risk over months ahead.

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

Mixed fundamentals: a solid, low-leverage balance sheet (equity ratio 90.39%, debt-to-equity 0.03) is offset by declining revenue ($172.39M to $149.65M), weakening profitability (net margin 6.46%), negative EBIT/EBITDA margins, and concerning cash flow visibility (reported operating/investing/free cash flow at zero for the latest period).

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 below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.76, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 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	56 Neutral	HK$643.25M	-20.50	-8.35%	2.94%	2.22%	-434.25%
3336	55 Neutral	HK$1.61B	-2.97	-11.23%	―	-11.28%	-122.85%
2436	48 Neutral	HK$4.95B	-424.24	-1.60%	―	32.83%	90.24%
1079	43 Neutral	HK$428.01M	-23.26	-23.45%	―	29.21%	-137.50%
8159	42 Neutral	HK$63.36M	-1.47	-58.39%	―	2.76%	-141.34%
3638	40 Underperform	HK$454.31M	-12.99	-32.47%	―	-52.55%	-262.35%

MEGAIN Holding (Cayman) Co. Ltd. Corporate Events

GEEHY to Take Major Stake in MEGAIN Holding and Subscribe New Shares in HK$168 Million Deal

GEEHY International Limited has agreed to acquire approximately 40.67% of MEGAIN Holding (Cayman) Co. Ltd.’s issued share capital from existing vendors for HK$105.5 million, at HK$0.50 per share, subject to conditions precedent and regulatory compliance. In tandem, MEGAIN and GEEHY have entered into subscription agreements under a general mandate for GEEHY to subscribe to 103.75 million new shares at HK$0.61 per share, representing 20% of current and about 16.67% of enlarged share capital, alongside a possible unconditional mandatory cash offer for the remaining shares and the planned resumption of trading, moves that will significantly reshape MEGAIN’s ownership structure, inject roughly HK$61.3 million in net proceeds, and potentially alter control dynamics and stakeholder outlook.

The most recent analyst rating on (HK:6939) stock is a Hold with a HK$0.78 price target. To see the full list of analyst forecasts on MEGAIN Holding (Cayman) Co. Ltd. stock, see the HK:6939 Stock Forecast page.

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.