ISP Holdings warns of wider 2025 loss despite strong revenue and profit rebound

ISP Holdings Limited ( (HK:2340) ) just unveiled an update.

ISP Holdings Limited has flagged a wider annual loss for 2025 despite a strong rebound in business volumes, with revenue expected to rise about 45% to 50% and gross profit to more than double from a year earlier. The higher loss, estimated at HK$47 million to HK$51 million versus HK$33.5 million previously, reflects hefty provisions for bad debts and expected credit losses amid mounting credit risk in Hong Kong’s construction sector, as well as substantial litigation and arbitration costs.

Management attributed the topline and margin improvement to new contract wins, substantial interest income on restricted cash, fair value gains on financial assets, and cost savings on subcontracted projects where final payments were reduced by agreement. However, the decision to book large impairment charges on receivables and contract assets underscores the pressure from financially constrained developers and highlights ongoing volatility for shareholders ahead of the audited 2025 results due by the end of March 2026.

The most recent analyst rating on (HK:2340) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on ISP Holdings Limited stock, see the HK:2340 Stock Forecast page.

More about ISP Holdings Limited

ISP Holdings Limited is a Hong Kong-listed company operating in the construction-related sector, providing contracting services to developers and other clients in the local market. The group’s business is closely tied to Hong Kong’s property and infrastructure cycles, leaving it exposed to credit risks from financially stressed developers and to broader fluctuations in the city’s construction environment.

Average Trading Volume: 196,483

Technical Sentiment Signal: Sell

Current Market Cap: HK$123.1M

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