Borqs Technologies, Inc.

Borqs Technologies, Inc. (NASDAQ: BRQS) is a software, development services, and production company based in China. The company offers Android-based smart connected devices and cloud service solutions that are configurable, distinctive, and scalable.

Key Highlights

• BRQS’s net margin for Q2FY21 was -236.6%, significantly lower than the industry median of 6.3%.
• As of June 30, 2021, the company had cash and cash equivalents of USD 8.79 million and no outstanding debt.
• Relatively Low liquidity, Current ratio was 1.21x in Q2FY21 vs. the industry median of 1.72x.
• BRQS successfully signed a set of updated licence agreements with Qualcomm on April 14, 2022, which included purchasing the 5G patent licensing deal. These partnerships allow the company to create and produce 5G products for customers worldwide using Qualcomm's cutting-edge technologies.
• On March 30, 2022, BRQS and its recently acquired subsidiary, Holu Hou Energy LLC in the United States, will start developing and delivering smart goods for the EV and smart home markets, commencing with HHE branded EV chargers and generators. In HHE's solar energy + battery solution, these new products will be integrated with the Smart Load Panel.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 0.17 to USD 1.60.

Conclusion: Considering the company’s lackluster fundamentals, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the closing price of USD 0.33, down 7.95%, as of April 22, 2022.

Technical Price Chart (April 22, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of April 22, 2022

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.