WK Group Warns of Sharply Lower 2025 Profit on Margin Squeeze

WK Group (Holdings) Limited ( (HK:2535) ) has provided an announcement.

WK Group (Holdings) Limited has issued a profit warning, stating that it expects net profit for the year ended 31 December 2025 to fall to not more than approximately HK$18.0 million, down from about HK$31.5 million a year earlier. The company attributes the decline mainly to a contraction in gross profit margin, as tighter budgets from main contractors forced it to lower tender prices in order to win construction projects, highlighting ongoing margin pressure and a more competitive operating environment for the group’s core business. The figures are based on unaudited management accounts and may change when the final annual results are released, and shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.

The most recent analyst rating on (HK:2535) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on WK Group (Holdings) Limited stock, see the HK:2535 Stock Forecast page.

More about WK Group (Holdings) Limited

WK Group (Holdings) Limited is a Hong Kong-listed company operating in the construction sector, securing projects as a contractor through competitive tendering. Its business is exposed to pricing pressure from main contractors, which directly affects its gross profit margin and overall profitability.

Average Trading Volume: 7,713,685

Technical Sentiment Signal: Buy

Current Market Cap: HK$2.08B

For detailed information about 2535 stock, go to TipRanks’ Stock Analysis page.