tiprankstipranks
MEGAIN Holding (Cayman) Co. Ltd. (HK:6939)
:6939
Hong Kong Market
Want to see HK:6939 full AI Analyst Report?

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

1 Followers

Top Page

HK:6939

MEGAIN Holding (Cayman) Co. Ltd.

(6939)

Select Model
Select Model
Select Model
Neutral 43 (OpenAI - Gpt-5.6Sol)
Rating:43Neutral
Price Target:
HK$1.00
▲(35.14% Upside)
Action:Reiterated
Date:07/22/26
Overall score is held down primarily by the latest financial deterioration (large 2025 loss and renewed cash burn) and weak price momentum (below key moving averages with negative MACD). A low-leverage balance sheet provides some resilience, but negative earnings (reflected in a negative P/E) and the absence of a stated dividend limit valuation support.
Positive Factors
Low leverage
Conservative leverage gives MEGAIN greater financial flexibility than a heavily indebted business, allowing more capacity to absorb earnings volatility and fund operations without immediate dependence on borrowing. This remains a structural balance-sheet strength despite recent losses.
Negative Factors
Profitability collapse
The sharp swing into a very large net loss, alongside deeply negative operating and EBITDA margins, signals a major deterioration in the economics of the business. Unless margins recover, weak earnings quality can reduce reinvestment capacity and continue pressuring shareholder capital over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
Conservative leverage gives MEGAIN greater financial flexibility than a heavily indebted business, allowing more capacity to absorb earnings volatility and fund operations without immediate dependence on borrowing. This remains a structural balance-sheet strength despite recent losses.
Read all positive factors

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

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

Company Description
Operating as an investment holding enterprise, MEGAIN Holding (Cayman) Co., Ltd. primarily focuses on the conceptualization, development, and commercialization of compatible cartridge chips, alongside other semiconductor solutions. Its operations ...

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

Summary
Financial quality is weak due to a sharp 2025 profitability breakdown (swing to a very large net loss with deeply negative operating/EBITDA margins) and inconsistent cash generation, including negative operating cash flow and free cash flow in 2025. The main offset is a conservatively levered balance sheet with low debt relative to equity, but equity/assets declined and ROE turned sharply negative, indicating pressure on capital from earnings volatility.
Income Statement
24
Negative
Balance Sheet
68
Positive
Cash Flow
30
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue156.36M151.32M149.65M172.39M173.37M167.87M
Gross Profit5.34M8.49M48.25M66.98M90.63M86.70M
EBITDA-65.34M-47.57M-3.95M33.47M60.44M44.88M
Net Income-85.45M-81.52M9.66M23.21M44.89M31.26M
Balance Sheet
Total Assets274.10M335.05M410.19M390.21M404.27M360.16M
Cash, Cash Equivalents and Short-Term Investments194.38M164.67M229.19M243.83M277.13M238.35M
Total Debt9.54M22.93M10.62M1.88M3.97M9.08M
Total Liabilities29.58M47.99M39.40M19.99M40.48M32.98M
Stockholders Equity243.79M286.32M370.79M370.22M363.79M327.18M
Cash Flow
Free Cash Flow-19.51M-38.06M-8.54M-19.36M49.02M-6.50M
Operating Cash Flow-6.86M-17.36M10.64M-9.01M55.47M-4.47M
Investing Cash Flow-34.39M-8.79M-21.05M-64.36M-2.61M-5.34M
Financing Cash Flow-1.60M-697.00K-1.28M-21.11M-18.99M126.73M

MEGAIN Holding (Cayman) Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.74
Price Trends
50DMA
1.43
Negative
100DMA
1.68
Negative
200DMA
1.37
Negative
Market Momentum
MACD
-0.07
Negative
RSI
43.94
Neutral
STOCH
66.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6939, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.43, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6939.

MEGAIN Holding (Cayman) Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
HK$6.72B179.693.98%-4.33%
45
Neutral
HK$1.72B-24.9088.11%2.03%3.00%6.72%
43
Neutral
HK$709.65M-5.91-32.24%2.94%5.37%-206.61%
42
Neutral
HK$2.30B-1.88-29.05%3.94%-2.67%-127.19%
39
Underperform
HK$27.36M-0.21-270.79%1.02%-26.68%-37.04%
34
Underperform
HK$462.25M-19.64-17.54%3.45%-4.56%14.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6939
MEGAIN Holding (Cayman) Co. Ltd.
1.14
0.66
137.50%
HK:2028
Jolimark Holdings
2.01
1.87
1385.19%
HK:1079
Pine Technology Holdings Limited
0.22
-0.08
-27.76%
HK:3336
Ju Teng International Holdings Limited
2.72
1.48
119.35%
HK:8159
Glory Mark Hi-Tech (Holdings) Ltd
0.03
-0.07
-66.00%
HK:2436
LX Technology Group Limited
19.01
15.20
398.95%

MEGAIN Holding (Cayman) Co. Ltd. Corporate Events

MEGAIN Holding’s Interim Loss Widens Despite Modest Revenue Growth
Aug 26, 2026
MEGAIN Holding reported revenue of RMB73.20 million for the six months ended 30 June 2026, a modest 3.4% increase from a year earlier, but its interim loss widened to RMB41.10 million, up 6.5% from the prior period. Margin pressure from higher cos...
MEGAIN Sets Reciprocal Chip Supply and Purchase Deals With Controlling Shareholder Affiliate
Aug 20, 2026
MEGAIN Holding (Cayman) Co. Ltd. has signed a Purchase Framework Agreement with Pantum Technology under which the group will buy consumable chips and other chips from Pantum Technology Group from October 2026 to the end of 2028, subject to approva...
Megain Holding Sets August Board Meeting to Approve Interim Results and Mull Dividend
Aug 14, 2026
MEGAIN Holding (Cayman) Co. Ltd. has scheduled a board meeting for 26 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the publication of these results, along with the potent...
MEGAIN Holding Overhauls Board Leadership and Committee Line-Up
Aug 13, 2026
MEGAIN Holding (Cayman) Co. Ltd. has announced a broad reshuffle of its board, effective 13 August 2026, including the resignations of non-executive director Lam Tsz Leung and independent non-executive director Kao Yi-Ping, both stepping down to f...
MEGAIN Holding Details Board and Committee Structure
Aug 13, 2026
MEGAIN Holding (Cayman) Co. Ltd. has announced the current composition of its board of directors, naming Wang Dongjie as chairman, Wang Yuanxue as an executive director, and Cheng Hsien-Wei as deputy chairman alongside other non-executive and inde...
Geehy’s Mandatory Offer Closes, Lifts Stake in MEGAIN to Majority Control
Aug 12, 2026
Geehy International Limited and MEGAIN Holding (Cayman) Co. Ltd. announced the close of an unconditional mandatory cash offer on 12 August 2026, without revision or extension. The offer resulted in Geehy and its concert parties holding approximate...
Megain Holding Opens Mandatory Cash Offer Period With Dispatch of Composite Document
Jul 21, 2026
MEGAIN Holding (Cayman) Co. Ltd., a Cayman Islands-incorporated issuer listed in Hong Kong under stock code 6939, is the subject of an unconditional mandatory cash offer from Geehy International Limited. The transaction targets all issued shares n...
MEGAIN completes share sale and HK$61 million subscription to fund chip R&D and growth
Jul 16, 2026
MEGAIN Holding (Cayman) Co. Ltd. has completed a share purchase agreement under which Geehy International Limited acquired 211 million shares from existing vendors at HK$0.50 per share. This transaction formalizes a significant change in the compa...
MEGAIN Holding Names Semiconductor Veteran Wang Yuanxue as CEO
Jul 13, 2026
MEGAIN Holding (Cayman) Co., Ltd. has appointed 43-year-old industry veteran Wang Yuanxue as chief executive officer, effective 13 July 2026, as part of a leadership refresh aimed at strengthening its position in the semiconductor and integrated c...
MEGAIN Holding Wins Unanimous Shareholder Backing for AGM Resolutions and Capital Mandates
Jun 29, 2026
MEGAIN Holding shareholders approved all resolutions at the 29 June 2026 annual general meeting, which was held via an e-voting portal with participation representing about 75.82% of the company’s issued shares. Investors endorsed the 2025 a...
MEGAIN shareholders approve share mandate as CEO resigns
Jun 29, 2026
MEGAIN Holding (Cayman) Co. Ltd. reported that its subscription independent shareholders approved an ordinary resolution at an extraordinary general meeting held via e-voting on 29 June 2026. The resolution endorsed subscription agreements and gra...
MEGAIN updates investors on conditional takeover offer and connected subscription
Jun 22, 2026
MEGAIN Holding (Cayman) Co., Ltd. and Geehy International Limited have provided a monthly update on the proposed unconditional mandatory cash offer for all MEGAIN shares not already owned or agreed to be acquired by the offeror and its concert par...
MEGAIN Holding Calls Online EGM to Approve New Share Subscription Mandate
Jun 11, 2026
MEGAIN Holding (Cayman) Co. Ltd. has called an extraordinary general meeting to be held via an online eVoting portal on 29 June 2026, immediately after its annual general meeting, for shareholders to consider and approve subscription agreements an...
MEGAIN Holding Sets EGM to Approve Subscription Agreements and Share Mandate
Jun 9, 2026
MEGAIN Holding (Cayman) Co. Ltd. will convene an extraordinary general meeting on 29 June 2026 via an e-voting portal, immediately after its annual general meeting, for independent shareholders to vote by poll on subscription agreements and a prop...
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: Jul 22, 2026