Yuexiu Services Issues Profit Warning as Property Slump Hits High-Margin Business

Yuexiu Services Group Ltd. ( (HK:6626) ) has shared an announcement.

Yuexiu Services Group has warned that profit attributable to equity holders for 2025 is expected to fall by about 20% to 25% year on year, with core net profit projected to decline by roughly 45% to 50%, reflecting pressure on underlying earnings. The deterioration is mainly driven by a shrinking high-margin value-added services segment amid a severe property downturn, the completion of a non-recurring home decoration phase, higher operating costs to support service quality and occupancy, and rising labor expenses.

Management signaled a strategic push in 2026 toward high-quality growth in non-residential businesses and accelerated development of new value-added services to rebuild margins and enhance operational efficiency. The announcement, based on unaudited management accounts, underlines the impact of the broader real estate slump on the company’s profitability and signals a transition phase for stakeholders as Yuexiu Services seeks to reposition itself as a trusted smart city service provider.

The most recent analyst rating on (HK:6626) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Yuexiu Services Group Ltd. stock, see the HK:6626 Stock Forecast page.

More about Yuexiu Services Group Ltd.

Yuexiu Services Group Limited is a Hong Kong–incorporated property services provider focused on residential and non-residential projects, including value-added services such as brokerage and home decoration. The group positions itself as a smart city service provider, aiming to expand high-quality non-residential operations and diversify profit sources beyond traditional property management.

Average Trading Volume: 1,092,271

Technical Sentiment Signal: Sell

Current Market Cap: HK$3.67B

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