tiprankstipranks
Advertisement
Advertisement

Luen Thai Signals 2025 Return to Profit After One-Off Costs Drop and Margins Improve

Story Highlights
  • Luen Thai expects to swing from a US$34 million loss in 2024 to a US$3.8–4.8 million net profit in 2025.
  • The turnaround is driven by the absence of large one-off costs, improved gross margins, and reduced finance expenses.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Luen Thai Signals 2025 Return to Profit After One-Off Costs Drop and Margins Improve

Meet Samuel – Your Personal Investing Prophet

Luen Thai Holdings Limited ( (HK:0311) ) has shared an update.

Luen Thai Holdings Limited has issued a profit alert indicating it expects to swing to a net profit attributable to shareholders of about US$3.8 million to US$4.8 million for the year ending 31 December 2025, reversing a net loss of approximately US$34 million recorded in 2024. The turnaround is mainly driven by the absence of roughly US$30 million in non-recurring expenses booked in 2024, including severance and legal costs tied to U.S. customs issues, the shutdown of a loss-making factory in China and the closure of its personal protective equipment business, additional inventory and tax provisions, and losses from the disposal of a non-profitable subsidiary and deregistration of a joint venture. Improved gross margins following the mitigation of the U.S. customs issues and lower finance costs, helped by falling interest rates and more efficient funding, also contributed to the recovery, with finance expenses falling from about US$13 million in 2024 to around US$9 million in 2025. The figures are based on unaudited management accounts and remain subject to finalisation, and the company has advised shareholders and potential investors to exercise caution when trading its shares ahead of the formal 2025 annual results announcement expected in late March 2026.

The most recent analyst rating on (HK:0311) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Luen Thai Holdings Limited stock, see the HK:0311 Stock Forecast page.

More about Luen Thai Holdings Limited

Luen Thai Holdings Limited is a Hong Kong–listed company incorporated in the Cayman Islands, operating through a group structure with subsidiaries. Its businesses include apparel-related operations, historically encompassing factories in mainland China and a personal protective equipment line within its Apparel segment, with exposure to U.S. customs and regulatory issues, indicating a focus on export-oriented manufacturing and global supply chains.

Average Trading Volume: 59,210

Technical Sentiment Signal: Hold

Current Market Cap: HK$227.5M

See more insights into 0311 stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1