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Sinomax flags sharp 2025 profit drop but tightens grip on Danish unit

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Sinomax flags sharp 2025 profit drop but tightens grip on Danish unit

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Sinomax Group Ltd. ( (HK:1418) ) just unveiled an update.

Sinomax Group has warned that profit after tax for 2025 is expected to fall to not less than HK$80 million from about HK$162.6 million a year earlier, with profit attributable to shareholders projected at no less than HK$55 million versus roughly HK$138.1 million in 2024. The decline is mainly attributed to continued U.S. tariffs on its exported products and adverse foreign-exchange movements, prompting the company to stress ongoing cost controls and flexible capacity deployment.

Despite the profit deterioration, Sinomax is deepening its international expansion by raising its stake in Denmark-based M DK Holdings ApS from 45% to 55%, turning it into a subsidiary and reinforcing long-term strategic collaboration. Management expects this move to unlock operational synergies, extend growth opportunities beyond Europe and diversify the Group’s customer base, while it continues to monitor market conditions and focus resources on higher-growth business segments.

The most recent analyst rating on (HK:1418) stock is a Buy with a HK$0.23 price target. To see the full list of analyst forecasts on Sinomax Group Ltd. stock, see the HK:1418 Stock Forecast page.

More about Sinomax Group Ltd.

Sinomax Group Limited is a Hong Kong–listed manufacturer with a global presence primarily in China, the U.S. and Vietnam. The Group focuses on foam-based home and sleep products and is expanding its international footprint, including in Europe, to broaden its customer base and leverage cross-border production synergies.

Average Trading Volume: 244,034

Technical Sentiment Signal: Sell

Current Market Cap: HK$350M

For detailed information about 1418 stock, go to TipRanks’ Stock Analysis page.

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