Brinno Inc. (7402) AI Stock Analysis

Brinno Inc.

(TPEx:7402)

Select Model

Rating:43Neutral

Price Target:TWD 72.00▼(-11.87% Downside)

Action:initiatedcoverage

Date:11/09/26

Brinno scores low primarily because FY2025 profitability all but disappeared — net income fell over 90%, ROE dropped to 0.6%, and free cash flow swung to negative NT$326.5M as the company levered up from near debt-free to NT$375M of debt to fund a large expansion. Technicals reinforce the caution, with the stock trading far below all major moving averages and momentum indicators (MACD, RSI, Stochastic) still negative. Valuation provides no cushion, as the P/E is meaningless on collapsed earnings and the 0.67% dividend yield is thin. Offsetting strengths are a stable revenue base, consistently healthy ~33% gross margins, positive operating cash flow, and equity still funding more than half of assets. The next 12–24 months of revenue and cash generation from the new asset base will determine whether the current investment cycle restores prior profitability.

Positive Factors

Purpose-Built Product PositioningBrinno serves identifiable use cases with compact, purpose-built camera systems rather than relying only on broad consumer electronics demand. This specialization can support product differentiation and customer relevance across construction monitoring, content creation, and long-duration documentation.

Negative Factors

Revenue ContractionNegative recent revenue growth shows that demand has not been consistently expanding and follows earlier declines after the 2022 peak. Continued contraction could reduce operating leverage, limit investment capacity, and make it harder for the company to restore prior earnings performance.

Brinno Inc. (7402) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.84B
Dividend Yield: 0.61%
Average Volume (3M): 445.53K
Price to Earnings (P/E): -2216.1
Beta (1Y): 1.23
Revenue Growth: -9.94%
EPS Growth: -114.68%
Country: TW
Employees: 74
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Brinno Inc. Business Overview & Revenue Model

Company Description

Brinno Incorporated is dedicated to the development, manufacturing, and global marketing of advanced visual recording technology. Its diverse product portfolio encompasses specialized time-lapse cameras and corresponding accessories, intelligent home...

Brinno Inc. Financial Statement Overview

Summary

Weak and deteriorating fundamentals. Revenue has stabilized (NT$520.9M vs NT$507.9M) and gross margin remains healthy near 33%, but profitability nearly vanished in FY2025 — operating profit fell to NT$17.2M and net income collapsed to NT$3.7M from NT$51.8M, cutting net margin to 0.7% and ROE to 0.6% (Income Statement score 41). The balance sheet retains a solid equity cushion funding ~57% of assets, but debt jumped from NT$9.2M to NT$375.3M, lifting debt-to-equity to 0.58 to fund a major asset build-out (Balance Sheet score 58). Cash flow is the weakest link: operating cash flow fell ~70% to NT$43.6M while free cash flow swung to negative NT$326.5M on heavy capex, creating near-term reliance on external funding (Cash Flow score 38). The company is effectively mid-investment cycle with no earnings payoff yet.

Income Statement

41Neutral

Balance Sheet

58Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	467.94M	520.89M	507.87M	542.22M	653.91M	550.75M
Gross Profit	148.92M	173.02M	170.78M	181.91M	188.80M	180.65M
EBITDA	5.26M	28.02M	71.37M	66.79M	91.21M	61.58M
Net Income	-1.36M	3.69M	51.84M	44.23M	56.77M	37.72M
Balance Sheet
Total Assets	1.18B	1.14B	798.86M	777.97M	795.16M	754.69M
Cash, Cash Equivalents and Short-Term Investments	500.99M	530.33M	532.98M	460.68M	490.37M	454.75M
Total Debt	374.25M	375.26M	9.20M	25.52M	272.46M	279.90M
Total Liabilities	552.78M	492.34M	112.48M	103.83M	387.66M	407.34M
Stockholders Equity	625.84M	649.86M	686.38M	674.14M	407.50M	347.35M
Cash Flow
Free Cash Flow	-353.42M	-326.50M	136.53M	13.21M	47.35M	57.43M
Operating Cash Flow	35.85M	43.56M	143.25M	18.68M	50.53M	59.01M
Investing Cash Flow	-352.21M	-471.51M	-4.16M	-2.91M	-4.51M	-6.65M
Financing Cash Flow	292.75M	324.46M	-58.72M	-45.29M	-11.63M	271.68M

Brinno Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7402 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3669	61Neutral	TWD 2.77B	10.12	―	3.35%	9.13%	395.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6292	53Neutral	TWD 2.53B	9.62	―	3.30%	21.17%	345.80%
TW:7402	43Neutral	TWD 2.83B	-2216.07	―	0.61%	-9.94%	-114.68%
TW:3047	41Neutral	TWD 2.99B	-14.89	―	2.23%	-32.95%	-101.63%
TW:6142	41Neutral	TWD 2.53B	-27.46	―	―	11.42%	48.35%
TW:6218	40Underperform	TWD 2.74B	25.74	―	―	9.99%	―

* General Sector Average

Performance Comparison

TW:7402 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7402	Brinno Inc.	81.70	-29.41	-26.47%
TW:3047	Edimax Technology Co., Ltd.	13.40	-5.45	-28.91%
TW:3669	Aver Information Inc.	29.85	1.28	4.48%
TW:6142	Cameo Communications, Inc.	8.32	-2.03	-19.62%
TW:6218	Hauman Technologies Corp.	42.65	24.15	130.54%
TW:6292	AXIS Corporation	54.60	14.54	36.30%

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: Nov 09, 2026

Brinno Inc. AI Stock Analysis