Wing Lee Development Construction Holdings (9639) H2 25/26 earnings summary

Executive summary

• FY26 revenue fell 13.4% YoY to HK$620.3m; profit for the year declined 66.8% to HK$18.4m, reflecting weaker civil engineering revenue, lower margins and upfront new-energy investment.

• Strategic focus is a dual-track “Green Building + New Energy” model, combining infrastructure expertise with growth in charging, battery swapping and energy storage.

Financial highlights

• Revenue was HK$620.3m, down 13.4% YoY; gross profit fell 36.6% to HK$91.5m and gross margin declined to 14.8% from 20.2%.

• Operating profit decreased 61.6% to HK$27.1m; profit before tax fell 66.8% to HK$22.7m and profit for the year to HK$18.4m.

• Basic and diluted EPS was HK1.8 cents, versus HK6.4 cents in FY25.

• Selling and marketing expenses were HK$16.9m, mainly for new-energy development; administrative expenses decreased 22.3% to HK$47.1m.

• Net finance costs increased 91.3% to HK$4.4m, mainly due to higher borrowings; income tax expense was HK$4.3m.

Outlook and guidance

• New energy is expected to move from investment to growth, with plans to expand high-power charging and battery-swap infrastructure and scale the “battery bank” business in Hong Kong and Southeast Asia.

• Management expects new-energy growth to benefit from government support and alliance partners, and to contribute to business diversification and long-term profitability.

• Civil engineering is expected to benefit from Hong Kong infrastructure plans; management aims to pursue major projects, improve tender competitiveness and execution efficiency, and restore growth.

• Electrical and mechanical engineering plans to target power-system upgrades and smart-grid projects, leveraging public-sector relationships and CLP investment plans.

• Management plans to balance infrastructure and low-carbon energy development while maintaining financial soundness and prudent risk management.