Wing Lee Development Construction Holdings (9639) H1 25/26 earnings summary

Executive summary

• H1 FY2025/26 revenue fell 37% YoY to HK$252.432m and profit for the period fell 48.8% to HK$19.210m, mainly as civil engineering projects wound down.

• Gross margin rose to 20.7% from 20.0%; E&M and new energy revenue grew, partly offsetting the civil engineering contraction.

Financial highlights

• Revenue was HK$252.432m versus HK$400.813m; gross profit was HK$52.149m versus HK$80.278m.

• Operating profit was HK$25.055m, down 48.3%; profit before tax was HK$23.129m, down 50.8%; profit for the period was HK$19.210m, down 48.8%.

• Basic and diluted EPS was HK$0.02 versus HK$0.05 YoY.

• Selling and marketing expenses rose HK$4.1m, mainly for new energy equipment sales and the Zero-Carbon Smart Space; administrative expenses increased 12% to HK$22.9m, partly due to post-listing fees.

• Net finance costs increased to HK$1.9m from HK$1.5m; prior-period profit included HK$13.2m of one-off listing expenses.

Outlook and guidance

• Plans include expanding solar, storage, charging, battery swapping and recycling services, supported by alliance partners’ technology and networks; no quantified earnings guidance was given.

• Hong Kong plans ~HK$120bn annual basic engineering expenditure for five years and a further HK$30bn for projects over two to three years.

• CLP Power’s 2024–2028 plan allocates HK$52.9bn to power infrastructure, supporting expected demand for cable, smart-grid and related E&M work.

• Civil engineering bidding will target large projects, including Lam Tei Quarry; infrastructure development is expected to support stable profit growth.