Koyo International Limited Issues Profit Guidance for FY2025: Significant Earnings Upside Expected

Koyo International Limited has released its profit guidance for the financial year ended 31 December 2025. The company expects a substantial improvement in net profit, primarily driven by robust performance from its mechanical engineering business segment. Below, we analyze the key takeaways from the announcement and offer practical insights for current and prospective investors.

Key Financial Metrics and Performance Overview

The company has indicated the following in its latest announcement:

• Significant increase in net profit for FY2025 compared to a marginal net profit in FY2024.
• The improvement is mainly attributed to the mechanical engineering business segment.

As the full audited numbers were not disclosed in this preliminary guidance, specific figures for revenue, earnings per share (EPS), and other financial ratios are not available yet. The company expects to publish its full year unaudited financial results for FY2025 on or before 1 March 2026.

Comparative Earnings Table

Due to the absence of detailed financial figures in the report, the following table summarizes the qualitative changes disclosed:

Other Noteworthy Information

• No details were provided regarding dividends, asset revaluation, directors’ pay, or other corporate actions.
• No mention of exceptional earnings or expenses, fundraising activities, share buybacks, or legal/regulatory events.
• The announcement is a preliminary profit guidance and not the final audited results.

Management Commentary

The Board, via Managing Director and CEO Foo Suay Wei, issued the following guidance:

The Board of Directors (the “Board”) of Koyo International Limited (“Company” and together with its subsidiaries, the “Group”) wishes to advise shareholders that based on the preliminary review of the Group’s unaudited consolidated financial results for the financial year ended 31 December (“FY”) 2025, the Group expects to report a significant increase in net profit for FY2025 compared to a marginal net profit recorded for FY2024. The increase in net profit was mainly due to contributions from the mechanical engineering business segment.

The tone of the statement is positive, reflecting confidence in the company’s performance turnaround.

Outlook and Forward Guidance

The company is in the process of finalizing its unaudited financial results for FY2025, with more details to be announced on or before 1 March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares, as emphasized by management.

Conclusion and Investment Recommendation

Based on the profit guidance, Koyo International Limited demonstrates a significant improvement in profitability for FY2025, with core growth driven by its mechanical engineering segment. The positive management tone and clear turnaround from marginal profit to a substantial increase indicate a strong operational recovery.

• For Current Shareholders: If you are holding Koyo International shares, consider maintaining your position until the release of the full FY2025 results. The profit guidance signals a positive earnings inflection, which could support higher valuations if confirmed by detailed financials. However, remain attentive to the actual numbers in the upcoming results and exercise caution as advised by management.
• For Potential Investors: If you do not currently own shares, it may be prudent to await the detailed FY2025 results before making a commitment. While the outlook is promising, concrete data will provide a firmer basis for investment decisions. Consider monitoring the stock for confirmation of the profit guidance in the forthcoming results.

Disclaimer: This analysis is based solely on the content of the company announcement and does not constitute financial advice. Investors should conduct their own research and consult professional advisers before making investment decisions.

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