olivLaw · US equity research
Mega Fortune Co Ltd MGRT
Services-Computer Programming Services · SIC 7371 · Vertical: Services-Computer Programming Services (SIC 7371)
Mega Fortune Co Ltd is an Internet of Things (IoT) solutions and services provider in Hong Kong, operating through its subsidiary QBS System Limited, founded in 2011. The company listed its shares on Nasdaq in July 2025, and its fiscal 2025 revenue reached US$11.1 million.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Mega Fortune Co Ltd (MGRT) stock was 118.81 USD (−0.69% on the day), with market capitalisation 1.6 bn USD, P/E 698.9 on diluted EPS of 0.17 USD over the last 12 months, beta -0.83, 52-week range 4.52–142.20 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.5
- strong (55–70)
- Bollinger (20, 2)
- 98.02 – 126.06
- in the upper half of the band · %B 0.74 · band width 25.0%
- SMA 50 / 200
- 111.54 / 75.80
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.96 / 2.12
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.3% | −1.1% | +15.3 pp | — |
| 3 months | +26.0% | −0.5% | +26.4 pp | — |
| 6 months | −13.9% | +4.4% | −18.3 pp | — |
| Year to date | +1,482.0% | +12.3% | +1,469.7 pp | — |
| 1 year | +2,238.8% | +13.5% | +2,225.2 pp | −42.9% |
| 3 years | unavailable | +76.4% | unavailable | −39.8% |
| 5 years | unavailable | +63.7% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 1-quarter history (min 27.5, median 27.5, max 27.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 3.2 m | 3.3 m | 11.1 m |
| Revenue YoY | unavailable | +2.4% | +233.3% |
| Net income | 536.6 k | 401.5 k | 1.8 m |
| Net income YoY | unavailable | −25.2% | +345.4% |
| Diluted EPS | 0.05 | 0.04 | 0.17 |
| Diluted EPS YoY | unavailable | −20.0% | +325.0% |
| net % | 16.5% | 12.1% | 16.1% |
| Free cash flow | -34.5 k | -107.2 k | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 764.8 k USD
- Financial debt
- 661.7 k USD
- Net debt
- -103.0 k USD
- Equity
- 15.6 m USD
- Total assets
- 18.5 m USD
- Debt / equity
- 0.04x
- Current ratio
- 4.88x
- ROE
- 21.1%
- ROA
- 16.3%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 3.2 m | 3.3 m | 11.1 m | SEC (XBRL)· 03 Feb 2026verified |
| Cost of revenue | 2.0 m | 1.5 m | 5.5 m | SEC (XBRL)· 03 Feb 2026verified |
| Gross profit | 1.3 m | 1.8 m | 5.6 m | SEC (XBRL)· 03 Feb 2026verified |
| Operating income | 552.5 k | 544.8 k | 2.2 m | SEC (XBRL)· 03 Feb 2026verified |
| Interest expense | 21.3 k | 19.6 k | 20.2 k | SEC (XBRL)· 03 Feb 2026verified |
| Pre-tax income | 617.7 k | 575.6 k | 2.3 m | SEC (XBRL)· 03 Feb 2026verified |
| Income tax | 81.2 k | 174.1 k | 531.8 k | SEC (XBRL)· 03 Feb 2026verified |
| Net income | 536.6 k | 401.5 k | 1.8 m | SEC (XBRL)· 03 Feb 2026verified |
| Diluted EPS | 0.05 | 0.04 | 0.17 | SEC (XBRL)· 03 Feb 2026verified |
| Weighted average diluted shares | 10.0 m | 10.0 m | 10.8 m | SEC (XBRL)· 03 Feb 2026verified |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | — | 371.9 k | 764.8 k | SEC (XBRL)· 03 Feb 2026verified |
| Receivables | — | 2.3 m | 6.2 m | SEC (XBRL)· 03 Feb 2026verified |
| Current assets | — | 2.7 m | 12.3 m | SEC (XBRL)· 03 Feb 2026verified |
| Property, plant & equipment, net | — | 9.5 k | 6.1 k | SEC (XBRL)· 03 Feb 2026verified |
| Total assets | — | 3.4 m | 18.5 m | SEC (XBRL)· 03 Feb 2026verified |
| Accounts payable | — | 21.4 k | 304.0 k | SEC (XBRL)· 03 Feb 2026verified |
| Long-term debt | — | — | 661.7 k | SEC (XBRL)· 03 Feb 2026verified |
| Current liabilities | — | 1.6 m | 2.5 m | SEC (XBRL)· 03 Feb 2026verified |
| Total liabilities | — | 2.1 m | 2.9 m | SEC (XBRL)· 03 Feb 2026verified |
| Equity | 952.5 k | 1.4 m | 15.6 m | SEC (XBRL)· 03 Feb 2026verified |
| Shares outstanding at year end | — | — | 13.8 m | SEC (XBRL)· 03 Feb 2026verified |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -32.7 k | -99.8 k | -12.0 m | SEC (XBRL)· 03 Feb 2026verified |
| Capex | 1.7 k | 7.4 k | — | SEC (XBRL)· 03 Feb 2026verified |
| Free cash flow | -34.5 k ≈ | -107.2 k ≈ | — | SEC (XBRL)· 03 Feb 2026derived |
| Investing cash flow | -1.7 k | -771 | — | SEC (XBRL)· 03 Feb 2026verified |
| Financing cash flow | -289.7 k | -146.8 k | 12.3 m | SEC (XBRL)· 03 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 35 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.6 bn USD
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Balance sheet100
- Quality36
- Valuation4
- Growth90
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.30 – 0.91 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/Sales0.30 – 0.91 (Mid 0.47)9 companies used · median multiple 0.6x · quartiles 0.4x – 1.1xCINT, CTSH, DOX, EPAM, FORTY, MWC, RDNW, WIT, XTIA
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 35/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 50.7% | 27 (on a fixed band) | 15% |
| EBIT margin · Quality | 20.3% | 84 (vs peers) | 12% |
| FCF margin · Quality | -108.3% | 0 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| Revenue growth (YoY) · Growth | 233.3% | 90 (vs peers) | 12% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 4.9x | 100 (on a fixed band) | 9% |
| EV/Sales · Valuation | 147.4x | 8 (vs peers) | 24% |
| FCF yield · Valuation | -0.7% | 0 (on a fixed band) | 18% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth· partial90/100 · 1/2 factors with a value
- Quality36/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation4/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Mega Fortune Co Ltd (MGRT). Latest full fiscal year: 2025; data up to 2025-09-30.
Figures computed from the financial statements: revenue 11.1 m USD in 2025; YoY growth 233.3%; net margin 16.1%; ROE 21.1%.
The estimated value range is 0.30–0.91 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 0.47 USD, the price of 118.81 USD leaves a potential of -99.6% (value / price − 1) and a margin of safety of -25,255.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 35/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 20.3%
- Revenue growth (YoY): 233.3%
- Current ratio: 4.9x
What contradicts it
- Gross margin: 50.7%
- FCF margin: -108.3%
- EV/Sales: 147.4x
- FCF yield: -0.7%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Services-Computer Programming Services (SIC 7371) · same industry (4-digit SIC) · compared with 32 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| INFYInfosys Limited | 49.6 bn | 16.1 | 29.0% | 16.4% | +3.9% | −30% / −30% |
| ZSZscaler Inc | 36.6 bn | — | -2.9% | -1.9% | +25.4% | −11% / +14% |
| CTSHCognizant Technology Solutions Corporation | 29.4 bn | 12.0 | 17.4% | 11.8% | +7.0% | −15% / −7% |
| VRSNVerisign Inc | 28.5 bn | 33.6 | — | 49.1% | +6.4% | +26% / +50% |
| WITWipro Limited | 22.7 bn | 15.4 | 16.4% | 14.7% | −3.2% | −21% / −11% |
| EPAMEpam Systems, Inc. | 7.1 bn | 18.6 | 11.2% | 7.2% | +15.4% | −27% / −47% |
| DOCSDoximity, Inc. | 6.2 bn | 40.9 | 17.2% | 25.5% | +13.1% | −33% / +49% |
| DOXAmdocs Limited | 4.9 bn | 10.3 | 14.1% | 9.9% | +2.4% | −43% / −48% |
| RGTIRigetti Computing, Inc. | 3.7 bn | — | -43.8% | -1,787.4% | −34.3% | −56% / +958% |
| FORTYFormula Systems (1985) Ltd. | 1.8 bn | 23.4 | 12.2% | 2.9% | +5.2% | −20% / +96% |
| MGRTMega Fortune Co Ltd | 1.6 bn | 698.9 | 21.1% | 16.1% | +233.3% | +2,239% / unavailable |
| PERIPerion Network Ltd. | 446.8 m | — | -1.1% | -1.8% | −11.7% | +12% / −59% |
| MFImF International Limited | 367.8 m | 36.4 | 3.9% | 232.8% | +29.4% | −68% / unavailable |
| IAInnovative Solutions And Support, Inc. | 353.7 m | 18.8 | 28.5% | 20.5% | +78.6% | +103% / +167% |
| GDEVGDEV Inc. | 176.1 m | 2.6 | — | 17.1% | −3.9% | −44% / −57% |
| ATGLAlpha Technology Group Ltd | 146.5 m | — | -184.7% | -952.0% | −40.2% | −61% / −39% |
| MLGOMicroAlgo Inc. | 135.7 m | 1.2 | 7.6% | 30.2% | −20.3% | −61% / −100% |
| MWCMicware Co., Ltd. | 82.0 m | 8.1 | 20.0% | 7.3% | unavailable | unavailable / unavailable |
| PDCPerpetuals.com Ltd | 74.9 m | — | -75.8% | -1,069.9% | −47.0% | −61% / −13% |
| CINTCI&T Inc | 73.8 m | 10.3 | 13.8% | 8.3% | +11.5% | −31% / −40% |
| CYCUCycurion, Inc. | 65.1 m | — | -76.7% | -98.0% | −14.8% | −91% / unavailable |
| XTIAXti Aerospace, Inc. | 37.7 m | — | — | -89.6% | +602.4% | −40% / −100% |
| MNDOMind Cti Ltd | 18.3 m | 6.9 | 11.0% | 13.4% | −9.3% | −24% / −53% |
| CHGAChange Agents Corporation | 17.8 m | — | -606.9% | -643.1% | +6.2% | −97% / −99% |
| RDNWRideNow Group, Inc. | 11.7 m | — | — | -0.8% | −10.5% | +7% / −9% |
1- and 3-year price returns: for MGRT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 59.40 Total return -50% · Per year -50% | 104.54 Total return -12% · Per year -12% | 156.80 Total return 32% · Per year 32% |
| 3 years | 70.46 Total return -41% · Per year -16% | 138.25 Total return 16% · Per year 5% | 225.80 Total return 90% · Per year 24% |
| 5 years | 83.57 Total return -30% · Per year -7% | 182.83 Total return 54% · Per year 9% | 325.15 Total return 174% · Per year 22% |
- Exit P/E± 34.56
- Net margin± 24.19
- Annual revenue growth± 18.04
- Annual dilution± 2.03
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Feb 2026; since then the company filed 6-K (29 Sept 2026), 6-K (20 Apr 2026).
In brief
Mega Fortune Co Ltd is an Internet of Things (IoT) solutions and services provider in Hong Kong, operating through its subsidiary QBS System Limited, founded in 2011. The company listed its shares on Nasdaq in July 2025, and its fiscal 2025 revenue reached US$11.1 million 1.
SWOT
Strengths
- The company has an operating history dating back to 2011 and long-standing relationships with key customers, according to the report 1.
- The service portfolio spans integration, maintenance and BPO, which allows synergies between business lines 1.
- Gross margin improved compared with earlier years, suggesting a better cost structure 1.
Weaknesses
Opportunities
- Expansion across the Asia-Pacific region could raise market share if the growth strategy is executed 1.
- Demand for energy efficiency, carbon management and smart buildings could open new contracts 1.
- Proceeds from the public offering could finance technology investment and expansion of the offering 1.
Risks
- Dependence on major customershigh
Revenue concentrated in a few clients could fall sharply if one major contract ends 1.
- Hong Kong regulatory riskhigh
Rapid changes in local law and its enforcement could limit legal protections and alter operations 1.
- Delisting riskhigh
Restrictions on PCAOB inspection of the auditor could lead to delisting of the shares, with a negative effect on investment value 1.
- Share price volatility and liquiditymedium
Thin trading and price volatility may make it difficult to sell shares near the desired price 1.
- Pricing and margin pressuremedium
Lower average selling prices and rising subcontracting costs could reduce profitability 1.
Investment thesis
What would need to be true (bull case)
- If integration and recurring service revenue keep growing, revenue could become more predictable and gross margin could remain strong 1.
- A decade of operating history in Hong Kong and a set of complementary services could help the company win larger projects 1.
- Proceeds from the public offering could fund regional expansion and technology investment 1.
What would break the thesis
- If revenue stays concentrated in a few clients, the loss of one major contract could seriously affect results 1.
- The Hong Kong regulatory environment is described as uncertain, which could limit operations or weigh on share value 1.
- The short history as a listed company and competitive pressure could make growth harder to sustain 1.
What to watch
- Trend in customer concentration and the share of the largest contractsnext 10-K
- Gross margin by business line, especially IoT integration2027
- How proceeds from the public offering are deployed2027
- Any changes in compliance status and PCAOB inspection requirementsnext 20-F
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Feb 2026; since then the company filed 6-K (29 Sept 2026), 6-K (20 Apr 2026).
The business
Mega Fortune is a holding company incorporated in the Cayman Islands in January 2024, which controls, through Ponte Fides Company Limited in the British Virgin Islands, the operating subsidiary QBS System Limited in Hong Kong 1. The company aims to become the preferred IoT solutions provider for enterprises and projects in the Asia-Pacific region, helping clients with digital transformation and with integrating IoT solutions into legacy systems 1. According to the annual report, fiscal 2025 revenue was US$11.1 million and net income was US$1.8 million 1.
The business is organised into four revenue streams: IoT integration solutions, business process outsourcing, IoT maintenance and support, and trading of hardware and IoT products 1. The company reports a single business segment, the provision of IoT solutions and services 1. Its clients come from several industries, including real estate, leisure and entertainment 1.
For integration and service projects, revenue is recognised over time as work progresses, and clients typically pay 20% to 50% of the contract sum upfront 1. Dependence on a small number of major customers is explicitly cited as a risk factor 1.
Segments
IoT integration solutions
This is the largest revenue stream, at 53.7% of total revenue in fiscal 2025, with a gross margin of 52.4% 1. The services cover consulting, development, implementation, analytics and support for enterprise and industrial IoT solutions 1.
Market context
The company operates in the IoT market, which the report describes as intensely competitive, with relatively low technological and financial barriers to entry 1. Operations are concentrated in Hong Kong, and all revenue is generated by the local subsidiary, so local economic conditions and the regulatory framework matter directly 1.
The regulatory framework for Hong Kong-based companies with US-listed shares is changing quickly, and the report flags these aspects as sources of uncertainty 1. Market prospects also depend on labour and logistics costs, which the company cannot fully control 1.
Trends
- Digitalisation and IoT adoption in buildings and industrytailwind
Growth in connected devices and demand for smart buildings and automation could support integration contracts if projects materialise 1.
- Rapid technological changemixed
Standards and products evolve quickly, forcing the company to keep investing in research and development with uncertain returns 1.
- Pricing pressureheadwind
Declining average selling prices due to technological progress could compress margins if costs cannot be passed on to suppliers 1.
- Regulatory uncertainty in Hong Kongheadwind
Actions by the central government and the national security law could change operating conditions quickly 1.
Competitive position
Competition comes from IoT device vendors, cloud platform providers, integration partners and platforms of companies with existing relationships with hardware and software makers 1. Larger competitors may have stronger brand recognition, larger installed bases and greater financial resources 1.
Smaller and younger firms can respond more quickly to client demands, and new entrants can enter at relatively low cost, which could put pressure on pricing 1.
- IoT platform and cloud providers
Companies offering connectivity and device management platforms, named in the report as main competitors in the enterprise market 1.
- IoT device and sensor vendors
Hardware and sensor makers competing in the integrated enterprise solutions segment 1.
- Integration partners with established relationships
Firms with service agreements with consultants who influence client purchasing decisions, according to the report 1.
- New entrants in niche segments
Younger and more agile firms that can respond quickly to local market needs, cited as a threat 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)29 Sept 2026
- Current report (foreign issuer)20 Apr 2026
- Annual report (foreign issuer)03 Feb 2026
- Current report (foreign issuer)18 Dec 2025
- Current report (foreign issuer)05 Dec 2025
- Current report (foreign issuer)30 Sept 2025
- Current report (foreign issuer)18 Jul 2025
Sources
- [1] Form 20-F, fiscal year ended 2025-09-30 · SEC / Mega Fortune Co Ltd · 03 Feb 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.