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Skyworth warns of 30% profit drop on China property slump and tech margin squeeze

Story Highlights
  • Skyworth expects 2025 profit to fall about 30% amid China’s property slump and related impairments.
  • Competitive pressure in smart systems technology is eroding margins, and investors are urged to be cautious.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Skyworth warns of 30% profit drop on China property slump and tech margin squeeze

Meet Samuel – Your Personal Investing Prophet

An announcement from Skyworth Digital Holdings ( (HK:0751) ) is now available.

Skyworth Group Limited has issued a profit warning, telling shareholders it expects its profit for the year ended 31 December 2025 to decline by about 30% from 2024 levels, based on preliminary unaudited figures. The shortfall stems mainly from China’s prolonged property downturn, which has forced higher impairment provisions on property inventories in certain regions within its construction development operations, reflecting weaker market conditions and weighing on overall performance.

The group also warned that its smart systems technology segment has suffered from intense competition, eroding both overall profitability and product gross margins for 2025. Skyworth stressed that the figures are preliminary and not yet audited, that the profit warning does not meet the full standards of the Takeovers Code, and that formal profit forecast reports will be provided later, prompting investors to exercise caution when assessing the ongoing delisting proposal and trading its shares.

The most recent analyst rating on (HK:0751) stock is a Sell with a HK$7.00 price target. To see the full list of analyst forecasts on Skyworth Digital Holdings stock, see the HK:0751 Stock Forecast page.

More about Skyworth Digital Holdings

Skyworth Group Limited is a Bermuda-incorporated company listed in Hong Kong, operating diversified businesses that include modern services such as construction development and smart systems technology. The group is exposed to China’s real estate market and competitive technology sectors, which materially influence its profitability and asset valuations.

Average Trading Volume: 6,595,279

Technical Sentiment Signal: Buy

Current Market Cap: HK$13.5B

See more insights into 0751 stock on TipRanks’ Stock Analysis page.

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