Willas-Array Electronics (Holdings) Limited: Positive Profit Alert – Significant Net Profit Improvement Expected

Date of Report: August 1, 2025

Reporting Period: Six months ended June 30, 2025

Business Description:

Based on the provided document, Willas-Array Electronics (Holdings) Limited is a company listed on both the Hong Kong Stock Exchange and the Singapore Exchange Securities Trading Limited. The document does not provide a detailed description of their core business operations, segments, geographic footprint, industry position, competitors, market share, revenue streams, customer base, supply chain, or competitive advantages.

Financial Statement Analysis:

Key Highlights:

• Significant Improvement in Profitability: The Group expects to record a consolidated net profit in the range of HK\$15.0 million to HK\$25.0 million for the six months ended June 30, 2025. [[1]]
• Turnaround from Loss: This is a significant improvement compared to a consolidated net loss of approximately HK\$78.6 million for the six months ended June 30, 2024. [[1]]
• Factors Contributing to Improvement:
  • General improvement in gross profit margin. [[2]]
  • Net impairment reversals of certain trade receivables (compared to net impairment losses in the previous period). [[2]]
  • A net reversal of allowance for inventory (compared to stock provision for slow-moving inventories in the previous period). [[2]]

Key Facts for Investor Action:

• Positive Profit Alert: The company is issuing a positive profit alert, indicating a substantial turnaround in financial performance. [[1]]
• Interim Results Publication: Detailed interim results are expected to be published in mid-August 2025. [[2]]

Special Activities to Improve Profitability:

The report indicates improvements are attributable to better gross profit margins, reversal of trade receivable impairments, and reversal of inventory allowances. [[2]] These suggest improved operational efficiency and potentially better asset management.

Investment Recommendation:

For Current Holders: The positive profit alert suggests a potential upside. Consider holding the stock and reviewing the detailed interim results when published in mid-August 2025 before making any decisions.

For Potential Investors: The turnaround is encouraging, but further investigation is warranted. Wait for the release of the full interim results and conduct a thorough analysis before investing. Consider factors such as the sustainability of the improved gross profit margin and the reasons behind the reversal of impairments and inventory allowances.

Disclaimer: This analysis is based solely on the provided document and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.

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