The company demonstrates significant pricing power with a 67.19% gross margin, though top-line growth is currently constrained at a modest 3.43%.
| Metric | Mar'25 | Mar'24 | Mar'23 |
|---|
| Sales/Revenue | 6.22M | 6.02M | 3.53M |
| Revenue Growth % | 3.43% | 70.37% | - |
| Cost of Goods Sold | 2.04M | 2.1M | 2.04M |
| COGS % of Revenue | 32.81% | 34.93% | 57.69% |
| Gross Profit | 4.18M | 3.91M | 1.49M |
| Gross Margin % | 67.19% | 65.07% | 42.31% |
| Gross Profit Growth % | 6.81% | 162% | - |
| Operating Expenses | 2.79M | 2.91M | 2.02M |
| OpEx % of Revenue | 44.87% | 48.3% | 57.07% |
| Selling, General & Admin | 2.32M | 2.35M | 1.66M |
| SG&A % of Revenue | 37.25% | 39.06% | 47.07% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 474.14K | 555.41K | 353.39K |
| Operating Income | 1.39M | 1.01M | -521.34K |
| Operating Margin % | 22.32% | 16.77% | -14.77% |
| Operating Income Growth % | 37.68% | 293.51% | - |
| EBITDA | 1.65M | 1.4M | -310.26K |
| EBITDA Margin % | 26.56% | 23.28% | -8.79% |
| EBITDA Growth % | 17.98% | 551.42% | - |
| D&A (Non-Cash Add-back) | 263.45K | 391.7K | 211.08K |
| EBIT | 1.46M | 1.03M | -400.21K |
| Net Interest Income | -167.43K | -170.25K | -152.28K |
| Interest Income | 64.14K | 19.51K | 10.29K |
| Interest Expense | 20.87K | 26.05K | 20.26K |
| Other Income/Expense | 46.23K | -5.35K | 100.87K |
| Pretax Income | 1.44M | 1M | -420.47K |
| Pretax Margin % | 23.07% | 16.68% | -11.91% |
| Income Tax | 236.08K | 181.75K | -84.86K |
| Effective Tax Rate % | 16.45% | 18.11% | 20.18% |
| Net Income | 1.2M | 777.81K | -305.12K |
| Net Margin % | 19.27% | 12.93% | -8.64% |
| Net Income Growth % | 54.16% | 354.92% | - |
| Net Income (Continuing) | 1.2M | 821.74K | -335.61K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | -66.63K | -110.21K |
| EPS (Diluted) | 0.07 | 0.05 | -0.02 |
| EPS Growth % | 54.25% | 355% | - |
| EPS (Basic) | 0.07 | 0.05 | -0.02 |
| Diluted Shares Outstanding | 16.94M | 16.94M | 16.94M |
| Basic Shares Outstanding | 16.94M | 16.94M | 16.94M |
| Dividend Payout Ratio | - | - | - |
Demographic and geographic concentration
As indicated by the reported 3.43% revenue growth, MCTA appears to be struggling with top-line expansion, likely constrained by the limited addressable market for its specialized postpartum and uterine health services within the highly localized Causeway Bay demographic environment in Hong Kong.
The modest growth rate suggests that the company's reliance on a high-touch, specialized service model may be reaching a saturation point in its primary location. Investors should monitor whether the recent pivot toward B2B consultancy can effectively decouple revenue from physical capacity constraints.
Based on the reported 67.19% gross margin, MCTA demonstrates significant pricing power derived from its proprietary TCM-integrated protocols, which allow for a substantial markup on both service labor and specialized product sales compared to standard aesthetic providers in the region.
This margin profile highlights the value of the company's niche positioning, though it remains vulnerable to fluctuations in the cost of specialized TCM raw materials. The ability to maintain these margins while scaling will depend on the company's success in increasing the attach rate of high-margin supplements.
According to the reported 22.32% operating margin, MCTA maintains profitability, yet the high fixed-cost burden associated with prime Hong Kong real estate suggests that operating leverage is currently limited by the physical throughput capacity of its wellness centers.
The current cost structure implies that incremental revenue gains are partially offset by the necessity of maintaining high-end facilities. A shift toward capital-light consultancy services may be required to improve operating leverage and reduce the sensitivity of earnings to local commercial rental volatility.
While the company maintains a stable financial profile, the combination of Hong Kong's historic low birth rates and potential regulatory scrutiny regarding TCM medical claims presents a significant risk to the long-term sustainability of the core postpartum revenue stream.
Short-term stability may mask underlying structural risks, as the total addressable market for postpartum care is inherently shrinking. Investors should be wary of the company's heavy geographic concentration, which leaves the entire revenue base exposed to localized economic downturns or shifts in consumer sentiment.
Quick answers to the most common questions about buying MCTA stock.
For fiscal year 2024, Charming Medical Limited Class A Ordinary Shares (MCTA) reported total revenue of $6.2M. This represents a 76.2% increase compared to $3.5M in 2022.
Charming Medical Limited Class A Ordinary Shares (MCTA) is profitable, generating $1.2M in net income for the fiscal year ending 2024 with a net profit margin of 19.3%.
Charming Medical Limited Class A Ordinary Shares (MCTA) reported an operating income of $1.4M, resulting in an operating profit margin of 22.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Charming Medical Limited Class A Ordinary Shares (MCTA) generated $4.2M in gross profit for the year, representing a gross profit margin of 67.2%. This demonstrates the company's core pricing power and production efficiency.