The company achieved 17.88% year-over-year revenue growth, though its 16.76% gross margin suggests a high-volume integration model that remains vulnerable to project-based cyclicality.
| Metric | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 85.24M | 72.31M | 45.96M |
| Revenue Growth % | 17.88% | 57.35% | - |
| Cost of Goods Sold | 70.96M | 57.87M | 36.09M |
| COGS % of Revenue | 83.24% | 80.03% | 78.54% |
| Gross Profit | 14.28M | 14.44M | 9.86M |
| Gross Margin % | 16.76% | 19.97% | 21.46% |
| Gross Profit Growth % | -1.09% | 46.38% | - |
| Operating Expenses | 4.31M | 2.7M | 4.79M |
| OpEx % of Revenue | 5.06% | 3.73% | 10.41% |
| Selling, General & Admin | 4.03M | 2.69M | 4.78M |
| SG&A % of Revenue | 4.73% | 3.73% | 10.41% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 283.02K | 386 | 1.82K |
| Operating Income | 9.97M | 11.74M | 5.08M |
| Operating Margin % | 11.69% | 16.24% | 11.05% |
| Operating Income Growth % | -15.12% | 131.24% | - |
| EBITDA | 9.98M | 11.76M | 5.1M |
| EBITDA Margin % | 11.71% | 16.27% | 11.1% |
| EBITDA Growth % | -15.17% | 130.58% | - |
| D&A (Non-Cash Add-back) | 9.1K | 17.69K | 22.18K |
| EBIT | 11.52M | 11.87M | 9.74M |
| Net Interest Income | 90 | 1.94K | -352 |
| Interest Income | 1.63K | 2.33K | 1.47K |
| Interest Expense | 1.54K | 386 | 1.82K |
| Other Income/Expense | 1.55M | 125.98K | 4.66M |
| Pretax Income | 11.52M | 11.87M | 9.73M |
| Pretax Margin % | 13.52% | 16.41% | 21.18% |
| Income Tax | 3.24M | 3.66M | 2.43M |
| Effective Tax Rate % | 28.08% | 30.82% | 24.92% |
| Net Income | 8.29M | 8.21M | 7.31M |
| Net Margin % | 9.72% | 11.36% | 15.9% |
| Net Income Growth % | 0.93% | 12.34% | - |
| Net Income (Continuing) | 8.29M | 8.21M | 7.31M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.47 | 0.47 | 0.42 |
| EPS Growth % | 0% | 11.9% | - |
| EPS (Basic) | 0.47 | 0.47 | 0.42 |
| Diluted Shares Outstanding | 17.5M | 17.5M | 17.5M |
| Basic Shares Outstanding | 17.5M | 17.5M | 17.5M |
| Dividend Payout Ratio | - | - | - |
Related party transaction exposure
According to recent company intelligence, MGN achieved a 17.88% year-over-year revenue growth, reflecting successful penetration into the Malaysian agritech market through its specialized engineering services, though the project-based nature of these developments suggests that top-line durability remains tied to the cyclicality of domestic food security capital expenditures.
The double-digit growth rate indicates that MGN is effectively capturing market share in a niche where generalist contractors lack the necessary hydraulic and environmental control expertise. However, investors should interpret this expansion with caution, as the reliance on project-based construction revenue may lead to lumpy performance compared to more diversified industrial peers.
As reported in financial summaries, MGN maintains a 16.76% gross margin, which suggests that the firm functions primarily as a high-volume integrator, passing significant costs through to equipment vendors while capturing value through specialized labor and technical integration within the Malaysian aquaculture sector's unique infrastructure requirements.
The 11.69% operating margin appears relatively efficient for an industrial firm, yet it leaves little room for error regarding raw material price volatility, particularly for specialized polymers. Sustained margin expansion likely depends on the company's ability to shift its revenue mix toward higher-margin maintenance contracts rather than initial construction.
Based on reported figures, MGN operates with a negligible 0.01% debt-to-equity ratio, which provides significant balance sheet resilience but may also indicate a reliance on parent-company funding or internal capital allocation strategies that could mask the true cost of financing for its large-scale infrastructure projects.
While the lack of debt is a positive indicator of financial health, it raises questions about whether the company is under-leveraging its assets or if off-balance-sheet arrangements are being utilized. Analysts should monitor whether this capital structure is a strategic choice or a byproduct of its subsidiary status under Star Sprite Limited.
As noted in industry analysis, the potential for related-party transactions with parent entity Star Sprite Limited creates a risk that reported revenue may not reflect arm's-length market demand, necessitating a closer look at the quality of earnings and the transparency of intercompany service agreements.
The reliance on percentage-of-completion accounting in a project-heavy business model may create a disconnect between reported income and actual cash generation. Investors should be wary of potential capital leakage to the parent company, which could undermine the long-term value proposition for minority shareholders.
Quick answers to the most common questions about buying MGN stock.
For fiscal year 2023, Megan Holdings Limited Ordinary Shares (MGN) reported total revenue of $85.2M. This represents a 85.5% increase compared to $46.0M in 2021.
Megan Holdings Limited Ordinary Shares (MGN) is profitable, generating $8.3M in net income for the fiscal year ending 2023 with a net profit margin of 9.7%.
Megan Holdings Limited Ordinary Shares (MGN) reported an operating income of $10.0M, resulting in an operating profit margin of 11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Megan Holdings Limited Ordinary Shares (MGN) generated $14.3M in gross profit for the year, representing a gross profit margin of 16.8%. This demonstrates the company's core pricing power and production efficiency.