S&P 500 eases slightly from fresh record high after stronger economic growth
KUALA LUMPUR - Sagtec Global Limited (NASDAQ:SAGT), a provider of customizable software solutions with a market capitalization of $27.74 million, reported a 144% year-over-year revenue increase to $11.4 million for the six months ended June 30, 2025, according to a company press release.
The Malaysia-based firm saw its net profit rise 308% to $1.9 million compared to the same period last year, while gross profit grew 173% to $2.3 million. According to InvestingPro analysis, the company is currently trading below its Fair Value, with a notably low PEG ratio of 0.31, suggesting potential upside for investors. Additional insights and 7 more ProTips are available for subscribers.
Revenue from services increased 107% to $6.9 million, driven by subscription renewals for the company’s Speed+ and QR ordering systems, as well as new customer acquisitions in the food and beverage sector. Revenue from tangible products jumped 237% to $4.4 million, primarily from sales of food ordering kiosks and power bank charging stations. The company maintains a healthy current ratio of 2.01 and has achieved a robust 77.59% revenue growth over the last twelve months.
"Our record-breaking half-year results validate Sagtec’s growth trajectory and resilience," said Kevin Ng, Chairman, Executive Director and Chief Executive Officer of Sagtec.
The company’s EBITDA grew 205% to $2.47 million compared to $809,000 in the first half of 2024. Basic and diluted earnings per share increased to $0.14 from $0.04 in the prior-year period.
Cost of sales rose 137% to $9.1 million, with services costs up 110% to $6.2 million and tangible product expenses increasing 242% to $2.85 million.
The company’s cash position strengthened to $454,000 as of June 30, 2025, compared to $87,900 at the beginning of the period. This improvement came despite $3.27 million in net cash used for operating activities and $3.56 million used for investing activities, offset by $7.20 million generated from financing activities.
Sagtec primarily serves the food and beverage industry with software solutions and operates power bank charging stations at 300 locations across Malaysia. Despite the stock’s 38.61% decline over the past six months, InvestingPro data shows the company maintains a "GREAT" overall financial health score of 3.24, suggesting strong fundamentals. Discover comprehensive financial metrics and exclusive analysis with an InvestingPro subscription.
In other recent news, Sagtec Global Limited has announced multiple significant developments. The company secured a $10 million contract with UAE-based SMD Tech FZCO for hotel self check-in/out systems, marking its entry into the hotel automation segment. This deal, which includes software licensing and data analytics services, is expected to generate multi-year recurring revenue. Additionally, Sagtec signed a definitive agreement to acquire an 80% equity stake in Smart Bridge Technology Limited, an AI software firm, with the acquisition anticipated to be earnings-accretive. The company also announced $5 million in AI and robotics contracts in Southeast Asia, part of a strategy to establish a $50 million revenue pipeline. Sagtec entered a Master Dealership Agreement with SMD Tech to distribute its Speed+ Cloud-Based Smart Ordering System in Dubai, projecting at least $30 million in revenue. These developments support Sagtec’s strategy to expand its SaaS offerings and enhance its presence in the Middle East and Southeast Asia.
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