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Xingye Alloy Materials Warns of 50% Profit Drop on Copper Hedge Losses and Cost Pressures

Story Highlights
  • Xingye Alloy expects 2025 profit to halve amid heavy copper hedge losses and rising costs.
  • Earnings are pressured by higher labour and depreciation expenses and scrapped export tax rebates.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Xingye Alloy Materials Warns of 50% Profit Drop on Copper Hedge Losses and Cost Pressures

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Xingye Alloy Materials Group Limited ( (HK:0505) ) has provided an announcement.

Xingye Alloy Materials Group has issued a profit warning, saying profit attributable to shareholders for the year ended 31 December 2025 is expected to fall by about 50% from RMB241.2 million in 2024. The company attributes the sharp decline mainly to significant losses on copper futures hedging following a rapid surge in copper prices in the fourth quarter of 2025, higher labour costs from new hires and salary adjustments, increased depreciation from new equipment and infrastructure, and reduced gross margins on overseas sales after the cancellation of export tax rebates on certain copper products in China. The results are still being finalised and unaudited, and the announcement underlines growing cost and policy pressures on the group’s copper-focused operations, signalling potential margin compression and heightened earnings volatility for investors.

The most recent analyst rating on (HK:0505) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Xingye Alloy Materials Group Limited stock, see the HK:0505 Stock Forecast page.

More about Xingye Alloy Materials Group Limited

Xingye Alloy Materials Group Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the metals and alloy materials sector, with a business closely tied to copper and related copper products, including overseas sales that are sensitive to changes in Chinese export tax policies and global commodity prices.

Average Trading Volume: 107,469

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$943.2M

For an in-depth examination of 0505 stock, go to TipRanks’ Overview page.

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