LH Group Signals Return to Profit on Revenue Growth and Cost Controls

LH Group Limited ( (HK:1978) ) has provided an update.

LH Group Limited has issued a positive profit alert, indicating it expects to report a profit attributable to shareholders of up to HK$2.0 million for the year ended 31 December 2025, reversing a loss of about HK$32.1 million in 2024. The turnaround is driven by revenue growth from an optimised restaurant network and new brands, reduced operating costs through tighter cost controls and efficiency, and lower impairment provisions after improving the performance of previously underperforming outlets.

Management reports that the group has actively adjusted its business strategy during the year, including portfolio optimisation, menu revamps, rental negotiations, improved supplier terms and varied promotional campaigns to stabilise operations. The company also emphasises active working-capital management to maintain healthy cash flow, though the figures remain preliminary and unaudited, and investors are cautioned to await the final annual results and exercise care when trading the shares.

The most recent analyst rating on (HK:1978) stock is a Hold with a HK$0.32 price target. To see the full list of analyst forecasts on LH Group Limited stock, see the HK:1978 Stock Forecast page.

More about LH Group Limited

LH Group Limited, listed in Hong Kong, operates a portfolio of restaurant brands and focuses on developing diverse dining concepts. The group’s strategy centres on optimising its restaurant network, enhancing brand mix, and maintaining premium food and service quality while managing costs and working capital prudently.

Average Trading Volume: 149,265

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$276M

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