SMC Electric warns of sharp profit slump for 2025 on weaker revenue

The latest update is out from SMC Electric Limited ( (HK:2381) ).

SMC Electric Limited has warned that profit attributable to owners for the year ended 31 December 2025 is expected to fall sharply to between HK$8 million and HK$12 million, compared with HK$26.36 million a year earlier. The company attributed the drop primarily to lower revenue and gross profit, signaling a weaker operating environment and margin compression.

The figures are based on preliminary unaudited management accounts and have not yet been reviewed by the audit committee or audited by external auditors. Final results, which may include adjustments, are expected to be approved and published before the end of March 2026, and the company has advised shareholders and potential investors to exercise caution when dealing in its shares in light of the anticipated earnings decline.

The most recent analyst rating on (HK:2381) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on SMC Electric Limited stock, see the HK:2381 Stock Forecast page.

More about SMC Electric Limited

SMC Electric Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates through a group structure that focuses on electrical-related businesses. The company is governed by a board comprising executive, non-executive and independent non-executive directors, reflecting a typical listed-company governance framework in the Hong Kong market.

The group’s operations place it among regional industrial and commercial players exposed to cyclical demand and margin pressures. Its financial performance is therefore sensitive to shifts in revenue and gross profit, which directly affect returns to its shareholders and the investment outlook for potential investors.

Average Trading Volume: 2,412,491

Technical Sentiment Signal: Buy

Current Market Cap: HK$342M

Learn more about 2381 stock on TipRanks’ Stock Analysis page.