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2203

Brainhole Technology SEHK:2203 Stock Report

Last Price

HK$0.14

Market Cap

HK$111.2m

7D

-6.7%

1Y

-36.8%

Updated

04 Oct, 2022

Data

Company Financials
2203 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2203 Stock Overview

Brainhole Technology Limited, an investment holding company, engages in the assembly, packaging, and sale of discrete semiconductors with a primary focus on applications for smart consumer electronic devices.

Brainhole Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brainhole Technology
Historical stock prices
Current Share PriceHK$0.14
52 Week HighHK$1.02
52 Week LowHK$0.10
Beta-0.063
1 Month Change-13.13%
3 Month Change-26.46%
1 Year Change-36.82%
3 Year Change-70.43%
5 Year Change-80.96%
Change since IPO-82.63%

Recent News & Updates

Sep 05
Brainhole Technology (HKG:2203) Is Carrying A Fair Bit Of Debt

Brainhole Technology (HKG:2203) Is Carrying A Fair Bit Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Apr 13
Here's Why Brainhole Technology (HKG:2203) Can Afford Some Debt

Here's Why Brainhole Technology (HKG:2203) Can Afford Some Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

2203HK SemiconductorHK Market
7D-6.7%-2.9%-4.3%
1Y-36.8%-32.9%-28.3%

Return vs Industry: 2203 underperformed the Hong Kong Semiconductor industry which returned -32.9% over the past year.

Return vs Market: 2203 underperformed the Hong Kong Market which returned -28.3% over the past year.

Price Volatility

Is 2203's price volatile compared to industry and market?
2203 volatility
2203 Average Weekly Movement11.7%
Semiconductor Industry Average Movement6.6%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 2203 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: 2203's weekly volatility has decreased from 23% to 12% over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
2012339Yi Liuhttps://www.brainholetechnology.com

Brainhole Technology Limited, an investment holding company, engages in the assembly, packaging, and sale of discrete semiconductors with a primary focus on applications for smart consumer electronic devices. The company operates through Manufacturing; Trading; and Broadband Infrastructure and Smart Domain segments. It constructs residential fiber-optical network; and provides survey, design, construction, and inspection services and unified operator access, as well as communication solutions for fixed line, broadband, mobile terminals and WIFI coverage.

Brainhole Technology Fundamentals Summary

How do Brainhole Technology's earnings and revenue compare to its market cap?
2203 fundamental statistics
Market CapHK$111.20m
Earnings (TTM)-HK$39.98m
Revenue (TTM)HK$326.55m

0.3x

P/S Ratio

-2.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2203 income statement (TTM)
RevenueHK$326.55m
Cost of RevenueHK$269.19m
Gross ProfitHK$57.36m
Other ExpensesHK$97.34m
Earnings-HK$39.98m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.05
Gross Margin17.57%
Net Profit Margin-12.24%
Debt/Equity Ratio46.7%

How did 2203 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 2203 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2203?

Other financial metrics that can be useful for relative valuation.

2203 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA-15.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 2203's PS Ratio compare to its peers?

2203 PS Ratio vs Peers
The above table shows the PS ratio for 2203 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2x
8490 Niche-Tech Group
0.6xn/aHK$148.2m
1305 Wai Chi Holdings
0.1xn/aHK$290.5m
712 Comtec Solar Systems Group
6xn/aHK$141.7m
6939 MEGAIN Holding (Cayman)
1.4xn/aHK$274.9m
2203 Brainhole Technology
0.3xn/aHK$111.2m

Price-To-Sales vs Peers: 2203 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2x).


Price to Earnings Ratio vs Industry

How does 2203's PE Ratio compare vs other companies in the HK Semiconductor Industry?

Price-To-Sales vs Industry: 2203 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Semiconductor industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

What is 2203's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2203 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2203's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2203 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 2203's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 2203's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Brainhole Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.6%

Forecasted Semiconductors industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Brainhole Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Brainhole Technology's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Brainhole Technology competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Brainhole Technology performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-57.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2203 is currently unprofitable.

Growing Profit Margin: 2203 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2203 is unprofitable, and losses have increased over the past 5 years at a rate of 57% per year.

Accelerating Growth: Unable to compare 2203's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2203 is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (73.3%).


Return on Equity

High ROE: 2203 has a negative Return on Equity (-30.47%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Brainhole Technology's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2203's short term assets (HK$231.1M) exceed its short term liabilities (HK$136.6M).

Long Term Liabilities: 2203's short term assets (HK$231.1M) exceed its long term liabilities (HK$57.1M).


Debt to Equity History and Analysis

Debt Level: 2203's net debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2203's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2203 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 2203 has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 1.5% each year.


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Dividend

What is Brainhole Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Brainhole Technology Dividend Yield vs Market
How does Brainhole Technology dividend yield compare to the market?
SegmentDividend Yield
Company (Brainhole Technology)n/a
Market Bottom 25% (HK)3.1%
Market Top 25% (HK)9.0%
Industry Average (Semiconductor)2.4%
Analyst forecast in 3 Years (Brainhole Technology)n/a

Notable Dividend: Unable to evaluate 2203's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2203's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2203's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2203's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2203 has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Yi Liu (47 yo)

no data

Tenure

Mr. Liu Yi , is the chief executive officer of Guangzhou Weaving Communications Telecommunications Technology Limited. Mr. Liu joined the Group in September 2019. Mr. Liu has over 18 years of experience in...


Leadership Team

Experienced Management: 2203's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: 2203's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of 2203?
Owner TypeNumber of SharesOwnership Percentage
General Public200,342,00025.0%
Individual Insiders599,658,00075.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 1 shareholders own 74.96% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
74.96%
Liang Zhang
599,658,000HK$83.4m0%no data

Company Information

Brainhole Technology Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Brainhole Technology Limited
  • Ticker: 2203
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: HK$111.200m
  • Shares outstanding: 800.00m
  • Website: https://www.brainholetechnology.com

Number of Employees


Location

  • Brainhole Technology Limited
  • Billion Plaza II, Office A
  • 31st Floor
  • Cheung Sha Wan
  • Kowloon
  • Hong Kong


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2203SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.