TK GROUP HLDG's stock price plummeted 5.33% during intraday trading on Tuesday, following the release of the company's 2025 financial results which revealed a significant decline in profitability.
The sharp decline comes after TK Group reported that its net profit for 2025 fell 16.75% year-on-year to HK$218 million, despite a modest 1.54% increase in revenue. Operating profit dropped even more sharply by 23.4% to HK$240.36 million, while earnings per share decreased from HK$0.32 to HK$0.26.
Market analysts suggest investors reacted negatively to the company's contracting profit margins, with gross margin narrowing to 24.6% due to lower utilization rates and higher development costs for new projects. While the company proposed both final and special dividends totaling HK$0.162 per share, the disappointing earnings performance appears to have outweighed the dividend announcement in investor sentiment.