LY Corporation Limited: Profit Guidance for 2H2025 and FY2025

LY Corporation Limited, a Singapore-listed company with subsidiaries, has released its profit guidance for the second-half period and financial year ended 31 December 2025. The Board has provided an early update on expected financial performance, highlighting several challenges faced during the period.

Key Performance Overview

The Group expects to report losses for both 2H2025 and FY2025. The principal causes for these losses are:

• Lower Revenue: Reduced demand from US customers led to a decline in the number of containers loaded with products.
• Foreign Exchange Impact: Weakening of the US dollar against Malaysian Ringgit reduced the average selling price per container, as export sales are primarily billed in USD.
• Higher Operating Expenses: Newly established subsidiaries incurred increased advertising, marketing, and staff costs.

Financial Metrics Comparison

As the report is based on preliminary unaudited results and does not disclose exact financial figures, the following table summarizes the qualitative comparison of key metrics:

Historical Performance Trends

While exact figures are not provided, the guidance notes a downward trend in revenue and profitability compared to prior periods. The company attributes this to macroeconomic headwinds and increased competition, especially in the US market.

Exceptional Expenses

Higher expenses are noted for advertising, marketing, and staff costs at new subsidiaries. No mention is made of early or delayed recognition of these expenses.

Macroeconomic and Currency Impacts

The weakening USD against MYR has adversely affected export sales, as the Group’s revenues are primarily denominated in USD. This currency risk has exacerbated the decline in average selling prices and overall profitability.

Corporate Actions and Forecasts

No mention is made of share buybacks, asset sales, IPOs, or mergers. However, the company is finalizing its results and expects to release audited results by 1 March 2026. Investors are cautioned to monitor future announcements for updated guidance or corrective actions.

Chairman’s Statement

The statement from the Executive Director and CEO, Tan Yong Chuan, is as follows:

“The Board wishes to update shareholders that, based on the preliminary assessment of the Group’s unaudited financial results for the second-half period and financial year ended 31 December 2025, the Group expects to report losses for 2H2025 and FY2025.”

The tone is cautionary and transparent, with a clear warning about expected losses and a call for shareholders and investors to exercise care in trading the company’s securities.

Conclusion & Investment Recommendations

Overall Outlook: The company’s financial performance and outlook appear weak, driven by falling revenue, unfavorable currency movements, and increased operating expenses. There are no immediate signs of turnaround or mitigating actions disclosed in the report.

• If you currently hold LY Corporation Limited shares: Consider reviewing your position carefully. The sustained losses and lack of positive guidance suggest that the stock may underperform in the near term. It may be prudent to reduce exposure or hold only if you have a high risk tolerance and believe in the company’s longer-term recovery.
• If you do not currently hold LY Corporation Limited shares: Exercise caution before initiating a position. Wait for further financial disclosures and evidence of stabilization or recovery in revenue and profitability.

Disclaimer: This analysis is based solely on information contained in the company’s official profit guidance announcement. It does not constitute a solicitation, recommendation, or offer to buy or sell any securities. Investors should consult their financial advisors and monitor future company announcements for updated information.

View LY Corp Historical chart here