The company maintains a robust 53.91% gross margin, though top-line expansion has decelerated to a marginal 2.42% year-over-year growth rate.
| Metric | Sep'24 | Sep'23 | Sep'22 |
|---|
| Sales/Revenue | 3.33M | 3.25M | 3.49M |
| Revenue Growth % | 2.42% | -6.99% | - |
| Cost of Goods Sold | 1.53M | 1.97M | 2.54M |
| COGS % of Revenue | 46.09% | 60.74% | 72.63% |
| Gross Profit | 1.79M | 1.27M | 955.78K |
| Gross Margin % | 53.91% | 39.26% | 27.37% |
| Gross Profit Growth % | 40.63% | 33.39% | - |
| Operating Expenses | 1.25M | 722.36K | 684.76K |
| OpEx % of Revenue | 37.52% | 22.24% | 19.61% |
| Selling, General & Admin | 1.25M | 722.36K | 684.76K |
| SG&A % of Revenue | 37.52% | 22.24% | 19.61% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 |
| Operating Income | 544.85K | 552.55K | 271.02K |
| Operating Margin % | 16.38% | 17.01% | 7.76% |
| Operating Income Growth % | -1.39% | 103.88% | - |
| EBITDA | 586.79K | 597.36K | 318.12K |
| EBITDA Margin % | 17.64% | 18.39% | 9.11% |
| EBITDA Growth % | -1.77% | 87.78% | - |
| D&A (Non-Cash Add-back) | 41.94K | 44.81K | 47.09K |
| EBIT | 595.23K | 639.02K | 340.13K |
| Net Interest Income | -19.43K | -20.96K | -20.07K |
| Interest Income | 203 | 341 | 11 |
| Interest Expense | 19.63K | 21.3K | 20.08K |
| Other Income/Expense | 30.75K | 65.17K | 49.03K |
| Pretax Income | 575.6K | 617.72K | 320.05K |
| Pretax Margin % | 17.31% | 19.02% | 9.17% |
| Income Tax | 174.06K | 81.16K | 24.37K |
| Effective Tax Rate % | 30.24% | 13.14% | 7.61% |
| Net Income | 401.53K | 536.55K | 295.68K |
| Net Margin % | 12.07% | 16.52% | 8.47% |
| Net Income Growth % | -25.16% | 81.46% | - |
| Net Income (Continuing) | 401.53K | 536.55K | 295.68K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.04 | 0.02 |
| EPS Growth % | -100% | 81.4% | - |
| EPS (Basic) | 0.00 | 0.04 | 0.02 |
| Diluted Shares Outstanding | 0 | 13.75M | 13.75M |
| Basic Shares Outstanding | 0 | 13.75M | 13.75M |
| Dividend Payout Ratio | - | - | - |
Limited revenue scale and liquidity
According to recent financial disclosures, MGRT's top-line expansion has decelerated to a marginal 2.42% year-over-year, suggesting that the company's specialized IoT integration model is currently struggling to capture significant new market share within the competitive Hong Kong enterprise technology landscape.
The modest growth rate implies that the company's reliance on bespoke maintenance and BPO services may be hitting a ceiling within its current geographic and vertical focus. Investors should monitor whether this reflects a lengthening sales cycle for IoT deployments or a broader saturation of the firm's existing client base.
As reported in financial statements, MGRT maintains a robust 53.91% gross margin, which indicates that the firm's value-add in specialized IoT integration and software licensing provides a significant competitive buffer against the commoditized hardware pricing typically seen in the broader electronic gaming and multimedia sector.
This structural margin profile suggests that the company successfully differentiates its service offerings from lower-margin trading solutions. However, the inability to translate these high gross margins into more aggressive top-line growth warrants further investigation into the scalability of their current service-led business model.
Based on reported figures, MGRT operates with a 16.38% operating margin, demonstrating that administrative overhead and specialized personnel costs consume a substantial portion of gross profit, leaving little room for the economies of scale typically required to compete with larger regional systems integrators.
The company's cost structure appears heavily weighted toward technical labor, which is essential for maintaining its niche moat but creates a high variable cost burden. Management's expense discipline appears adequate, yet the lack of operating leverage suggests that future profitability gains will likely depend on pricing power rather than volume-driven efficiency.
Market participants may be mispricing MGRT by relying on its legacy 'Electronic Gaming & Multimedia' industry tag, which obscures the firm's actual IoT and BPO operations and potentially excludes it from the valuation multiples typically afforded to specialized technology service providers.
Short-term investors should be wary that the company's small absolute revenue base of $3.3M makes it highly susceptible to volatility from individual contract milestones. The discrepancy between the company's actual business activities and its industry classification suggests a persistent risk of poor price discovery and limited institutional interest.
Quick answers to the most common questions about buying MGRT stock.
For fiscal year 2024, Mega Fortune Company Limited (MGRT) reported total revenue of $3.3M. This represents a 4.7% decline compared to $3.5M in 2022.
Mega Fortune Company Limited (MGRT) is profitable, generating $0.4M in net income for the fiscal year ending 2024 with a net profit margin of 12.1%.
Mega Fortune Company Limited (MGRT) reported an operating income of $0.5M, resulting in an operating profit margin of 16.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Mega Fortune Company Limited (MGRT) generated $1.8M in gross profit for the year, representing a gross profit margin of 53.9%. This demonstrates the company's core pricing power and production efficiency.