Magic Empire Global Limited (MEGL) | Investment Case

1. Company Snapshot

1.a. Company Description

Magic Empire Global Limited provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services to corporations in Hong Kong.The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

Show Full description

1.b. Last Insights on MEGL

Magic Empire Global Limited's recent performance was hindered by a Nasdaq bid price deficiency concern, which was successfully resolved on March 4, 2025. The company's stock price volatility and low trading volume may have contributed to the bid price deficiency. Additionally, the lack of recent earnings releases and news updates suggests a period of relative quietude for the company.

1.c. Company Highlights

Last Price	1.3
Change Percentage	2.36%
Open	1.23
Previous Close	1.27
Market Cap ( Millions)	10
Volume	6763
Year High	3.06
Year Low	0.46
M A 50	1.41
M A 200	1.45

FCF Yield	-5.70%
Dividend Yield	0.00%
ROE	-3.58%
Debt / Equity	3.29%
Net Debt / EBIDTA	4797.35%
Price To Book	0.4
Price Earnings Ratio	-10.83
Price To FCF	-17.55
Price To sales	6.38
EV / EBITDA	16.21

2. Transcript Summary

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3. NewsRoom

Magic Empire Global Limited announces that the bid price deficiency concern raised by Nasdaq has been successfully resolved

Mar -04

Source: globenewswire.com

Magic Empire Global Limited Announces First Half 2024 Unaudited Financial Results

Oct -30

Source: globenewswire.com

Magic Empire Global Limited Announces Receipt of Nasdaq Notification of additional 180 calendar day period to regain compliance of minimum bid price requirement

Aug -28

Source: globenewswire.com

Magic Empire Global Limited Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Mar -01

Source: globenewswire.com

Magic Empire Global Limited Announces Special Interim Dividend of US$0.01 per Ordinary Share

Oct -03

Source: globenewswire.com

Traders and investors see opportunity in high-stakes ‘musical chairs' of Chinese stocks, Stocktwits says

Sep -21

Source: Market Watch

Magic Empire Global Limited Announces US$2 Million Share Repurchase Plan

Sep -13

Source: globenewswire.com

Magic Empire Global Limited Announces Launch of Corporate Services

Aug -30

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Financial Advisory and Independent Financial Advisory Services

Expected Growth: 8.5%

Growing demand for expert financial guidance, increasing wealth creation, and investment strategies drive the growth of Magic Empire Global Limited's Financial Advisory and Independent Financial Advisory Services.

Initial Public Offering Sponsorship Services

Expected Growth: 12.5%

Growing demand for IPO sponsorship services driven by increasing number of companies going public, coupled with Magic Empire Global Limited's expertise in regulatory compliance and fundraising strategies, positions the company for significant growth in the market.

Compliance Advisory Services

Expected Growth: 8.5%

Growing demand for regulatory compliance, increasing complexity of laws and regulations, and rising need for risk management and governance drive the growth of compliance advisory services.

Corporate Services

Expected Growth: 5.5%

Growing demand for business solutions, increasing entrepreneurship, and rising need for compliance support drive the corporate services market growth.

7. Detailed Products

E-commerce Solutions

Magic Empire Global Limited offers comprehensive e-commerce solutions, enabling businesses to establish a strong online presence and reach a wider customer base.

Digital Marketing Services

The company provides a range of digital marketing services, including SEO, social media management, and content creation, to help businesses improve their online visibility and engagement.

Web Development Services

Magic Empire Global Limited offers custom web development services, creating tailored solutions to meet the unique needs of businesses and organizations.

Cybersecurity Solutions

The company provides robust cybersecurity solutions to protect businesses from cyber threats and data breaches.

IT Consulting Services

Magic Empire Global Limited offers expert IT consulting services, helping businesses optimize their technology infrastructure and improve operational efficiency.

8. Magic Empire Global Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Magic Empire Global Limited is moderate due to the presence of alternative forms of entertainment and leisure activities.

Bargaining Power Of Customers

The bargaining power of customers for Magic Empire Global Limited is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Magic Empire Global Limited is moderate due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Magic Empire Global Limited is high due to the low barriers to entry and the attractiveness of the industry.

Intensity Of Rivalry

The intensity of rivalry for Magic Empire Global Limited is high due to the presence of several established competitors and the high stakes of the industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.28%
Debt Cost	6.19%
Equity Weight	98.72%
Equity Cost	20.68%
WACC	20.49%
Leverage	1.30%

11. Quality Control: Magic Empire Global Limited passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

Scully Royalty

A-Score: 5.8/10

Value: 8.2

Growth: 1.6

Quality: 4.9

Yield: 8.3

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Flow Traders

A-Score: 5.4/10

Value: 8.2

Growth: 5.0

Quality: 6.1

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Mawson Infrastructure

A-Score: 4.4/10

Value: 9.4

Growth: 6.0

Quality: 6.2

Yield: 0.0

Momentum: 3.0

Volatility: 1.7

1-Year Total Return ->

Magic Empire Global

A-Score: 3.7/10

Value: 6.3

Growth: 2.9

Quality: 3.8

Yield: 1.7

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

TOP Financial Group

A-Score: 3.5/10

Value: 7.0

Growth: 1.3

Quality: 3.6

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.38%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

20.49%

Magic Empire Global Limited - VGG5865E1051

1. Company Snapshot

1.a. Company Description

Magic Empire Global Limited provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services to corporations in Hong Kong.The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

1.b. Last Insights on MEGL

1.c. Company Highlights

Weak Momentum

Lower Growth

Medium Volatility

Fairly Valued

Stable Momentum

Average Quality

Average Growth

Average Yield

More Volatile

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Financial Advisory and Independent Financial Advisory Services

Expected Growth: 8.5%

Initial Public Offering Sponsorship Services

Expected Growth: 12.5%

Compliance Advisory Services

Expected Growth: 8.5%

Corporate Services

Expected Growth: 5.5%

7. Detailed Products

E-commerce Solutions

Digital Marketing Services

Web Development Services

Cybersecurity Solutions

IT Consulting Services

8. Magic Empire Global Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Magic Empire Global Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.3$

Current Price

1.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA