WK Group (Holdings) (2535) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 3.6% YoY to HK$165.519m; gross profit declined 21.6% to HK$25.577m and profit attributable to owners fell 19.2% to HK$10.832m.

• Backlog was HK$255.7m across 26 projects at 30 June 2025, versus HK$322.1m across 22 projects at 31 December 2024.

Financial highlights

• Revenue was HK$165.519m versus HK$171.708m; slower certification affected project timelines and revenue recognition.

• Gross profit fell to HK$25.577m from HK$32.620m; cost of services was HK$139.9m versus HK$139.1m.

• Operating profit was HK$13.164m versus HK$17.242m; profit attributable to owners was HK$10.832m versus HK$13.402m.

• Basic and diluted EPS was HK0.54 cents versus HK0.81 cents; no interim dividend was recommended.

Outlook and guidance

• Public infrastructure and government-supported projects are expected to support demand despite Hong Kong property-market weakness and budget pressures.

• Potential opportunities include Tung Chung New Town Extension, New Central Harbourfront and Kwu Tung North.

• Priorities include cost control, operating efficiency, competitive tendering and workforce skills; no quantitative financial guidance was stated.