Pak Fah Yeow International Issues Positive Profit Alert for FY2025

Key Highlights

• Significant Increase in Net Profit Expected: Pak Fah Yeow International Limited (“the Company”; HKEX: 239) has announced a positive profit alert, forecasting a rise in consolidated net profit attributable to shareholders to approximately HK\$91.3 million for the year ended 31 December 2025. This represents a notable increase compared to the audited figure of HK\$78.6 million for 2024.
• Primary Driver – Reduced Fair Value Losses: The main contributor to this profit growth is a substantial reduction in unrealised fair value losses on the Group’s investment properties, which fell to HK\$6.3 million in 2025 from HK\$26.0 million in 2024. These fair value adjustments are based on independent property valuations and are non-cash in nature.
• Offset by Lower Healthcare Segment Revenue: The positive effect of reduced property fair value losses was partially offset by a decrease in recurring operating profit from the Healthcare segment, which experienced a year-on-year revenue decline of approximately HK\$20.1 million.
• Financial Figures are Preliminary: The information provided is based on the management’s preliminary assessment and is subject to change. The figures have not yet been reviewed by the Company’s auditor or audit committee.
• Results Announcement Timeline: The full audited annual results for FY2025 are expected to be released by the end of March 2026.

Details and Analysis

According to a statement released by Pak Fah Yeow International Limited, the Company anticipates a strong financial performance for the year ended 31 December 2025. The Board estimates a consolidated net profit attributable to shareholders of approximately HK\$91.3 million, up from HK\$78.6 million in the prior year. This improvement is primarily attributed to a sharp reduction in unrealised fair value losses on investment properties, following independent professional valuations as of year-end.

The Board highlighted that these fair value losses are non-cash accounting adjustments and do not directly impact the Group’s cash flow position. Nonetheless, the revaluation gains materially bolster reported profits and may influence market perception regarding the Company’s asset values and overall financial health.

However, shareholders should note that the healthy increase in reported profit was partially countered by a weaker performance in the Healthcare segment, which saw its revenues decrease by approximately HK\$20.1 million year-on-year. This resulted in a lower recurring operating profit for that segment, which is an important aspect for those monitoring the Company’s core business operations.

The Company cautioned that all figures are based on internal management accounts and currently available information. These numbers have not been audited or reviewed by the Company’s auditor or audit committee, and thus are subject to potential adjustments before the final results are announced.

The Board also reminded investors that movements in fair value are non-cash in nature and should be interpreted accordingly when assessing the Group’s underlying performance and cash generation capabilities.

Shareholder Impact and Price-Sensitive Information

• The announcement represents price-sensitive information as it signals a year-on-year increase in net profit, driven primarily by improved property revaluations.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Pak Fah Yeow International Limited, given that these results are preliminary and subject to audit.
• Changes in the valuation of investment properties can have a material impact on reported profits and therefore on the Company’s share price and investor sentiment.
• The decline in the Healthcare segment’s revenue is a critical point for those tracking the Company’s operational performance and may warrant further scrutiny once detailed results are released.

Board Composition

As of the date of the announcement, the Board consists of three executive directors (Mr. Gan Wee Sean, Mr. Gan Fock Wai, Stephen, and Mr. Gan Cheng Hooi, Gavin), one non-executive director (Ms. Gan Fook Yin, Anita), and three independent non-executive directors (Mr. Leung Man Chiu, Lawrence, Mr. Dell’Orto Renato, and Mr. Chan Chi Chung, Simon).

Conclusion

The Company’s positive profit alert is likely to be viewed favorably by investors, especially considering the reduced negative impact of property revaluations. However, the decline in Healthcare segment performance and the preliminary nature of the figures warrant a cautious approach until the audited results are published.

Disclaimer: The above article is based on unaudited, preliminary information disclosed by Pak Fah Yeow International Limited and is for informational purposes only. Investors should not rely solely on this summary for investment decisions. Please refer to the Company’s official announcements and consult with a financial advisor before trading in the Company’s securities.

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