Nanfang Communication Flags Profit Drop on Lower Subsidies, Higher Depreciation

An update from Nanfang Communication Holdings Ltd. ( (HK:1617) ) is now available.

Nanfang Communication Holdings has warned that its profit and total comprehensive income for the year ended 31 December 2025 is expected to fall to between RMB28.0 million and RMB31.0 million, down from about RMB39.9 million a year earlier. The company attributes the lower earnings mainly to reduced government grants following changes in subsidy policies and higher depreciation expenses after completing a construction site, and has urged shareholders and potential investors to exercise caution ahead of its audited results due by the end of March 2026.

The anticipated profit decline underscores the Group’s sensitivity to policy-driven subsidies and capital expenditure cycles, which can weigh on short‑term margins even as new assets come onstream. Investors will be watching how the shift in government support and increased depreciation affect the company’s cash flow, operational efficiency, and competitive positioning in the telecommunications supply chain over the coming reporting periods.

The most recent analyst rating on (HK:1617) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Nanfang Communication Holdings Ltd. stock, see the HK:1617 Stock Forecast page.

More about Nanfang Communication Holdings Ltd.

Nanfang Communication Holdings Ltd., incorporated in the Cayman Islands and listed in Hong Kong, operates in the communications sector through its subsidiaries. The Group is involved in providing products and services for telecommunications infrastructure, positioning it within the broader telecom and network equipment supply chain.

Average Trading Volume: 30,413,729

Technical Sentiment Signal: Buy

Current Market Cap: HK$715.5M

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