LK Technology (558) H1 25/26 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2025 rose 25.7% year-over-year to HK$3,260.5 million, with net profit up 1.1% to HK$167.7 million and a net profit margin of 5.1%.

• Gross profit margin decreased to 23.5% from 28.7% a year earlier, reflecting higher costs and competitive pressures.

• Interim dividend of HK3 cents per share declared, unchanged from the prior year.

• The die-casting machine segment drove growth, with revenue up 39.5% year-over-year, while injection moulding machines grew 4.4% and CNC machining centres declined 14.7%.

• Net profit margin was 5.1%, down from 6.4% last year.

Financial highlights

• Operating profit increased 15.4% year-over-year to HK$249.8 million.

• Total assets grew 5.8% to HK$12,608.5 million, while net assets rose 1.6% to HK$4,183.1 million as of 30 September 2025.

• Net current assets decreased 8.6% to HK$2,782.2 million; cash and cash equivalents fell 9.8% to HK$1,406.8 million.

• Total borrowings increased 13.6% to HK$2,441.7 million; gearing ratio rose to 24.7% from 14.3%.

• Basic and diluted EPS were HK10.4 cents, down from HK10.9 cents year-over-year.

Outlook and guidance

• The company aims to deepen technological innovation, expand global production capacity, and capture opportunities in high-end manufacturing and global development.

• Continued expansion in magnesium alloy die-casting and amorphous alloy technology for new applications.