Wing Lee Development Construction Holdings (9639) H2 24/25 earnings summary

Executive summary

• FY25 revenue rose 36.2% to HK$716.6m, while profit for the year fell 27.9% to HK$55.5m as lower-margin work, higher overheads and listing costs weighed on earnings.

• Civil and electrical/mechanical engineering drove growth; the new energy segment’s revenue declined, while investment expanded into electric machinery, commercial vehicles and charging infrastructure.

Financial highlights

• Revenue increased 36.2% to HK$716.6m; gross profit rose 18.7% to HK$144.4m, but operating profit fell 26.0% to HK$70.5m.

• Profit before tax declined 26.5% to HK$68.3m; net income fell 27.9% to HK$55.5m and basic/diluted EPS decreased to 6.4 HK cents from 10.3 HK cents.

• General and administrative expenses rose to HK$60.6m from HK$23.6m; FY25 included HK$16.5m of listing expenses versus HK$4.9m in FY24.

• Gross profit margin declined to 20.2% from 23.1%, reflecting a higher contribution from projects with relatively low margins.

Outlook and guidance

• Civil engineering opportunities are supported by Hong Kong infrastructure investment, including Northern Metropolis and Tung Chung New Town Extension; recent road and drainage work was undertaken in Kwu Tung North.

• Electrical/mechanical engineering aims to expand market share, with an 8-year cable trenching and laying master contract extending to H2 2032 and estimated value of ~HK$2bn, subject to actual work performed.

• New energy expansion targets electric commercial vehicles, machinery, charging, battery swapping, recycling and storage; strategic cooperation with SANY Group and CATL was signed on 9 May 2025.

• Remaining IPO proceeds are expected to be used by June 2025 to June 2026, depending on allocation; no final dividend was recommended for FY25.