AB Builders Group Limited Issues Profit Warning for FY2025

AB Builders Group Limited (Stock Code: 01615) has issued a profit warning, alerting shareholders and potential investors about a significant reduction in its expected profit for the fiscal year ended 31 December 2025.

Key Highlights from the Announcement

• Substantial Drop in Net Profit: The Group expects to record a profit after tax of not more than MOP3 million for FY2025. This represents a sharp decline from the previous year’s profit after tax of approximately MOP7.4 million for FY2024.
• Main Reasons for the Decline:
  • Lower Gross Profit Margin Projects: The decrease is primarily due to the completion of projects with lower gross profit margins in 2025, compared to higher-margin projects completed in 2024.
  • One-off Compensation Income No Longer Recurring: The Group had received a one-off compensation income of approximately MOP2.3 million from insurance claims in 2024, which does not recur in 2025.
• Preliminary and Unaudited Results: The information disclosed is based on the Group’s preliminary assessment of unaudited consolidated management accounts and current available information. The results are subject to review and possible adjustments by the Company’s audit committee and auditors.
• Disclosure Timeline: The final audited results for the year ended 31 December 2025 are expected to be published on 26 March 2026.
• Board Composition: As of the date of the announcement, the Board consists of four executive directors (Ms. Lao Chao U, Mr. Roberto Gnanavelu, Mr. Cheang Iek Wai, and Mr. Ip Kin Wa) and three independent non-executive directors (Mr. Chu Yat Pang Terry, Mr. O’Yang Wiley, and Mr. Choy Wai Shek, Raymond, MH, JP).

Important Information and Potential Impact for Shareholders

• Profitability Under Pressure: The expected reduction in profit, particularly to less than half of the previous year’s figure, is a significant development that could impact investor sentiment and potentially exert downward pressure on the Company’s share price.
• Non-recurrence of One-off Gains: The absence of the insurance compensation income in 2025 highlights the importance of recurring operational performance for future profitability.
• Revenue Quality Concerns: The shift to lower-margin projects may indicate challenges in securing higher-yielding contracts, which investors should monitor closely for future outlooks.
• Caution Advised: Both shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s securities, as the profit warning constitutes price-sensitive information.

Next Steps and Further Updates

The Group will provide its full audited results for FY2025 on 26 March 2026. Investors are encouraged to review the audited financial statements for a comprehensive understanding of the Company’s performance and outlook.

Disclaimer: This article is a summary of the Company’s profit warning announcement and is for informational purposes only. It does not constitute investment advice. Shareholders and potential investors should consult their own professional advisors and review the Company’s subsequent disclosures and audited results before making any investment decisions.

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