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Morimatsu Profit Slides on Margin Pressure Despite Surge in New Orders

Story Highlights
  • Morimatsu’s 2025 revenue was flat but gross and net margins weakened, driving a notable decline in annual profit.
  • New orders and remaining performance obligations rose sharply, indicating a stronger order book and future revenue visibility.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Morimatsu Profit Slides on Margin Pressure Despite Surge in New Orders

Meet Samuel – Your Personal Investing Prophet

Morimatsu International Holdings Company Limited ( (HK:2155) ) has issued an announcement.

Morimatsu International Holdings reported virtually flat revenue of RMB6.95 billion for 2025, but profitability declined as gross profit fell to RMB1.82 billion and gross margin narrowed to 26.1% from 29.5%. Net profit dropped to RMB584 million, reflecting higher selling and administrative expenses alongside lower research and development spending.

Despite weaker margins, the company booked a sharp increase in new orders to RMB8.57 billion, up from RMB5.97 billion, and its remaining performance obligations rose to RMB8.57 billion, signaling a stronger forward order book. The results suggest short-term pressure on earnings but an expanding pipeline of contracted work that underpins future revenue visibility for shareholders and other stakeholders.

The most recent analyst rating on (HK:2155) stock is a Buy with a HK$12.50 price target. To see the full list of analyst forecasts on Morimatsu International Holdings Company Limited stock, see the HK:2155 Stock Forecast page.

More about Morimatsu International Holdings Company Limited

Morimatsu International Holdings Company Limited is a Hong Kong-incorporated company listed on the Stock Exchange of Hong Kong. The group provides engineering and manufacturing solutions, focusing on process equipment and related systems for industrial clients, with revenue primarily generated from project-based contracts and long-term performance obligations.

Average Trading Volume: 5,170,392

Technical Sentiment Signal: Hold

Current Market Cap: HK$9.69B

For a thorough assessment of 2155 stock, go to TipRanks’ Stock Analysis page.

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