The company's 22.77% revenue growth is undermined by a negative 3.86% gross margin, indicating that direct project costs consistently exceed recognized contract values.
| Metric | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 |
|---|
| Sales/Revenue | 33.85M | 27.57M | 21.87M | 14.38M | 6.15M |
| Revenue Growth % | 22.77% | 26.09% | 52.03% | 133.73% | - |
| Cost of Goods Sold | 35.16M | 22.48M | 18.37M | 11.76M | 5.03M |
| COGS % of Revenue | 103.86% | 81.53% | 84.02% | 81.72% | 81.8% |
| Gross Profit | -1.31M | 5.09M | 3.49M | 2.63M | 1.12M |
| Gross Margin % | -3.86% | 18.47% | 15.98% | 18.28% | 18.2% |
| Gross Profit Growth % | -125.64% | 45.74% | 32.93% | 134.76% | - |
| Operating Expenses | 4.05M | 1.85M | 855.6K | 512.65K | 357.6K |
| OpEx % of Revenue | 11.96% | 6.7% | 3.91% | 3.56% | 5.81% |
| Selling, General & Admin | 1.11M | 1.17M | 761.17K | 488.85K | 357.6K |
| SG&A % of Revenue | 3.28% | 4.26% | 3.48% | 3.4% | 5.81% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 2.94M | 672.89K | 94.43K | 23.8K | 0 |
| Operating Income | -5.35M | 3.25M | 2.64M | 2.12M | 762.2K |
| Operating Margin % | -15.82% | 11.77% | 12.07% | 14.71% | 12.39% |
| Operating Income Growth % | -264.95% | 23.02% | 24.7% | 177.64% | - |
| EBITDA | -5.2M | 3.35M | 2.72M | 2.18M | 808.53K |
| EBITDA Margin % | -15.37% | 12.16% | 12.43% | 15.13% | 13.14% |
| EBITDA Growth % | -255.26% | 23.3% | 24.94% | 169.12% | - |
| D&A (Non-Cash Add-back) | 150.52K | 105.73K | 79.67K | 59.66K | 46.32K |
| EBIT | -5.3M | 3.26M | 3.44M | 2.2M | 1.45M |
| Net Interest Income | -535.35K | -379.43K | -203.03K | -89.4K | -86.65K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 508.81K | 286.09K | 179.99K | 74.57K | 86.65K |
| Other Income/Expense | -456.07K | -270.79K | 617.17K | 4.39K | 600.87K |
| Pretax Income | -5.81M | 2.98M | 3.26M | 2.12M | 1.36M |
| Pretax Margin % | -17.17% | 10.79% | 14.89% | 14.74% | 22.15% |
| Income Tax | -80.15K | 648.94K | 468.89K | 317.1K | 90.35K |
| Effective Tax Rate % | 1.38% | 21.81% | 14.4% | 14.95% | 6.63% |
| Net Income | -5.73M | 2.33M | 2.79M | 1.8M | 1.27M |
| Net Margin % | -16.93% | 8.44% | 12.75% | 12.54% | 20.68% |
| Net Income Growth % | -346.31% | -16.53% | 54.55% | 41.7% | - |
| Net Income (Continuing) | -5.73M | 2.33M | 2.79M | 1.8M | 1.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.48 | 0.16 | 0.22 | 0.14 | 0.08 |
| EPS Growth % | -400% | -27.27% | 57.14% | 65.09% | - |
| EPS (Basic) | 0.00 | 0.16 | 0.22 | 0.14 | 0.08 |
| Diluted Shares Outstanding | 11.85M | 15M | 15M | 15M | 15M |
| Basic Shares Outstanding | 0 | 15M | 15M | 15M | 15M |
| Dividend Payout Ratio | - | - | - | - | - |
Insolvency from negative margins
According to reported financial figures, Ming Shing Group achieved a 22.77% year-over-year revenue expansion, yet this top-line growth appears disconnected from the firm's underlying profitability, suggesting that the company is aggressively pursuing project volume despite a clear inability to execute these contracts at sustainable price points.
The double-digit revenue growth indicates a successful capture of new project wins within the Hong Kong construction sector. However, this trajectory warrants skepticism as it appears to be driven by volume rather than pricing power, potentially signaling a strategy of underbidding to maintain market share.
As indicated by the company's financial disclosures, the firm is currently operating with a negative 3.86% gross margin, which implies that the direct costs of labor and materials are consistently exceeding the contract values recognized during the current reporting period for its wet trade services.
This margin profile suggests that the company is likely locked into fixed-price contracts that fail to account for inflationary pressures in the Hong Kong labor market. Investors should monitor whether this negative margin is a temporary result of project-specific cost overruns or a permanent structural failure in the firm's bidding and estimation process.
Based on the provided data, the company's cost structure is heavily weighted toward variable inputs, and with a net margin of -16.93%, management appears unable to achieve the necessary operational leverage to offset the high costs associated with its specialized plastering and tiling labor force.
The lack of profitability despite significant revenue growth suggests that SG&A and direct project costs are not being managed with sufficient discipline. The firm appears to be trapped in a cycle where increased activity only serves to deepen the net losses, indicating a lack of scalability in its current business model.
Financial statements reveal a precarious cash position of approximately $249,923 against $33.8 million in revenue, suggesting that the company's growth is potentially toxic and relies on unsustainable working capital practices that could lead to a liquidity crisis if client payments are delayed or disputed.
Short-sellers would likely focus on the disconnect between the reported revenue growth and the company's inability to generate positive cash flow. The reliance on stretched accounts payable to fund operations may be masking a deeper insolvency risk that is not immediately apparent from the low debt-to-equity ratio.
Quick answers to the most common questions about buying MSW stock.
For fiscal year 2025, Ming Shing Group Holdings Limited (MSW) reported total revenue of $33.9M. This represents a 450.1% increase compared to $6.2M in 2021.
Ming Shing Group Holdings Limited (MSW) reported a net loss of $5.7M for the fiscal year ending 2025.
Ming Shing Group Holdings Limited (MSW) reported an operating income of $-5.4M, resulting in an operating profit margin of -15.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Ming Shing Group Holdings Limited (MSW) generated $-1.3M in gross profit for the year, representing a gross profit margin of -3.9%. This demonstrates the company's core pricing power and production efficiency.