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Dowell Service Group Issues Profit Warning Amid Real Estate Challenges

Story Highlights
  • Dowell Service Group has acquired a major stake in Shanghai Evergreen, expanding its social care services.
  • The company expects a significant net loss due to impairments from real estate customer issues.
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Dowell Service Group Issues Profit Warning Amid Real Estate Challenges

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The latest update is out from DOWELL SERVICE GROUP CO. LIMITED Class H ( (HK:2352) ).

Dowell Service Group Co. Limited has issued a profit warning following the acquisition of Shanghai Evergreen Social Care Enterprise Development Co., Ltd., which has been consolidated into its financial statements. The company anticipates a net loss between RMB50.0 million and RMB70.0 million for the year ending December 2024, attributed mainly to impairments in trade receivables from real estate developer customers facing liquidity issues. Despite the expected accounting loss, Dowell Service Group reports healthy operating cash inflow and is actively engaging with customers to mitigate potential losses.

More about DOWELL SERVICE GROUP CO. LIMITED Class H

Dowell Service Group Co. Limited is a joint stock company incorporated in the People’s Republic of China, operating in the service industry. The company, along with its subsidiaries, focuses on providing services related to social care and has recently acquired a significant stake in Shanghai Evergreen Social Care Enterprise Development Co., Ltd., expanding its market presence in the social care sector.

YTD Price Performance: 16.12%

Average Trading Volume: 1,200

Technical Sentiment Consensus Rating: Sell

Current Market Cap: HK$521.2M

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