The company's revenue growth remains modest at 7.8% year-over-year, while a 28.79% gross margin highlights the limitations of its service-heavy business model.
| Metric | Dec'24 | Dec'23 |
|---|
| Sales/Revenue | 3.1M | 2.88M |
| Revenue Growth % | 7.8% | - |
| Cost of Goods Sold | 2.21M | 1.46M |
| COGS % of Revenue | 71.21% | 50.73% |
| Gross Profit | 893.82K | 1.42M |
| Gross Margin % | 28.79% | 49.27% |
| Gross Profit Growth % | -37% | - |
| Operating Expenses | 1.76M | 1.47M |
| OpEx % of Revenue | 56.79% | 50.91% |
| Selling, General & Admin | 1.76M | 1.46M |
| SG&A % of Revenue | 56.79% | 50.66% |
| Research & Development | 0 | 7K |
| R&D % of Revenue | - | 0.24% |
| Other Operating Expenses | 0 | 0 |
| Operating Income | -869.02K | -47.06K |
| Operating Margin % | -27.99% | -1.63% |
| Operating Income Growth % | -1746.51% | - |
| EBITDA | -860.09K | -39.61K |
| EBITDA Margin % | -27.71% | -1.38% |
| EBITDA Growth % | -2071.23% | - |
| D&A (Non-Cash Add-back) | 8.93K | 7.45K |
| EBIT | -838.2K | 5.31K |
| Net Interest Income | -40.77K | 3.26K |
| Interest Income | 1.18K | 3.26K |
| Interest Expense | 41.95K | 0 |
| Other Income/Expense | -11.12K | 52.38K |
| Pretax Income | -880.15K | 5.31K |
| Pretax Margin % | -28.35% | 0.18% |
| Income Tax | 132.68K | 200.11K |
| Effective Tax Rate % | -15.07% | 3767.07% |
| Net Income | -1.01M | -194.79K |
| Net Margin % | -32.63% | -6.76% |
| Net Income Growth % | -419.94% | - |
| Net Income (Continuing) | -1.01M | -194.79K |
| Discontinued Operations | 0 | 0 |
| Minority Interest | 0 | 0 |
| EPS (Diluted) | 0.00 | -0.01 |
| EPS Growth % | 100% | - |
| EPS (Basic) | 0.00 | -0.01 |
| Diluted Shares Outstanding | 0 | 17.48M |
| Basic Shares Outstanding | 0 | 17.48M |
| Dividend Payout Ratio | - | - |
Insufficient scale and liquidity
As reported in financial statements, TCGL achieved a modest 7.8% year-over-year revenue growth, which suggests the company is struggling to capture significant market share within the rapidly expanding Southeast Asian fintech landscape despite its specialized focus on payment gateway and cybersecurity implementation services.
The single-digit growth rate indicates that the firm's reliance on project-based consultancy may be limiting its ability to scale effectively. Investors should monitor whether this trajectory reflects a deliberate focus on high-quality contracts or an inability to compete with larger, more established regional incumbents.
Based on reported figures, TCGL maintains a gross margin of 28.79%, a level that appears structurally low for a software-focused entity and suggests a cost profile heavily weighted toward labor-intensive service delivery rather than high-margin, scalable proprietary software licensing.
This margin profile implies that the company lacks the pricing power typically associated with pure-play software providers. The reliance on bespoke implementation work likely necessitates high direct labor costs, which may prevent the company from achieving the profitability levels required for long-term sustainability.
According to recent financial disclosures, the company reported a negative operating margin of -27.99%, demonstrating that its current revenue base of approximately $3.1 million is insufficient to cover the fixed administrative and personnel overhead required to maintain its specialized service platform.
The inability to achieve positive operating leverage suggests that the firm's cost structure is currently misaligned with its revenue generation capacity. Without a significant shift toward standardized product offerings, the company may continue to face difficulty in scaling its operations profitably.
As indicated by the company's $1.2 million cash position relative to its persistent negative operating margins, TCGL faces a precarious liquidity situation that warrants further investigation into its long-term ability to fund operations without resorting to dilutive equity financing or significant cost restructuring.
Short-sellers would likely focus on the discrepancy between the company's fintech branding and its actual financial performance, which mirrors a low-margin IT service provider. The lack of a clear path to profitability suggests that the current business model may be fundamentally unsustainable in its present form.
Quick answers to the most common questions about buying TCGL stock.
For fiscal year 2024, TechCreate Group Ltd. (TCGL) reported total revenue of $3.1M. This represents a 7.8% increase compared to $2.9M in 2023.
TechCreate Group Ltd. (TCGL) reported a net loss of $1.0M for the fiscal year ending 2024.
TechCreate Group Ltd. (TCGL) reported an operating income of $-0.9M, resulting in an operating profit margin of -28.0%. This margin reflects the operational efficiency of the business before interest and taxes.
TechCreate Group Ltd. (TCGL) generated $0.9M in gross profit for the year, representing a gross profit margin of 28.8%. This demonstrates the company's core pricing power and production efficiency.