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Heng Hup Flags 40–50% Profit Drop on Weaker Scrap Prices and Higher Transport Costs

Story Highlights
  • Heng Hup expects a 40–50 percent drop in 2025 profit due to weaker scrap metal prices and reduced revenue.
  • Higher transportation costs further eroded Heng Hup’s profitability, prompting a cautionary warning to investors.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Heng Hup Flags 40–50% Profit Drop on Weaker Scrap Prices and Higher Transport Costs

Meet Samuel – Your Personal Investing Prophet

The latest update is out from Heng Hup Holdings Ltd. ( (HK:1891) ).

Heng Hup Holdings has warned that its consolidated profit attributable to shareholders for the year ended 31 December 2025 is expected to fall by about 40% to 50% from 2024. The decline is mainly driven by lower average selling prices for scrap ferrous metals, which reduced revenue even though procurement costs fell and gross margins improved slightly.

The company also reported a significant increase in transportation costs during 2025, further weighing on overall profitability despite some cost-of-goods-sold relief. The board stressed that the figures are based on unaudited management accounts and preliminary assessment, and advised shareholders and potential investors to exercise caution when dealing in the company’s shares ahead of the final results.

The most recent analyst rating on (HK:1891) stock is a Hold with a HK$0.16 price target. To see the full list of analyst forecasts on Heng Hup Holdings Ltd. stock, see the HK:1891 Stock Forecast page.

More about Heng Hup Holdings Ltd.

Heng Hup Holdings Ltd. is a Hong Kong-listed company engaged in the scrap metal recycling business, with a focus on scrap ferrous metals. The group generates revenue primarily from the procurement, processing and sale of these materials, and its performance is closely tied to prevailing market prices and logistics costs in the regional metals recycling industry.

Average Trading Volume: 210,857

Technical Sentiment Signal: Hold

Current Market Cap: HK$142M

For detailed information about 1891 stock, go to TipRanks’ Stock Analysis page.

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